Practical Sales Training™ > How To Convert > The Free Returns Effect
What is it?
If you want people to buy, you have to remove the downsides. Paying to return unwanted goods is an unattractive proposition, so making it free eliminates the issue.
Why does it work?
It works because it removes the potential risks or costs that may arise if they do have to return an item. By removing the cost element (and absorbing it elsewhere) it makes the offer much more attractive.
How can you use it?
If you have a product based business, consider if free returns could be a commercially viable thing for you to offer.
Hypothetical Example:
An online shoe retailer notices that customers are hesitant to purchase due to uncertainty about sizing and the cost of returns. To address this, they introduce “Free 30-Day Returns – No Questions Asked.”
Now, buyers feel more confident ordering multiple pairs to try at home, knowing they can send back what doesn’t fit without incurring extra costs.
The company absorbs the cost of returns but benefits from a 30% increase in sales, as buyers see the risk of making a “wrong purchase” completely removed.
See also
- Free Delivery
- The Free Gift Effect
- The Freebie Effect
- 180+ ways to improve conversion
- 140+ ways to be easier to buy from
