Product returns are a costly problem for retailers. It has been estimated that U.S. customers return a hefty $264 billion worth of products annually—almost 9% of total sales. In online retailing, return rates are an even bigger problem. A 2013 Wall Street Journal article indicated that as much as a third of internet purchases are returned, and studies have found that handling these returns can cost between $6 and $18 per item.
When Positive Product Reviews Backfire for Retailers
Overly sunny ratings can lead to more refunds.
September 16, 2016
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New!
HBR Learning
Customer Focus Course
Accelerate your career with Harvard ManageMentor®. HBR Learning’s online leadership training helps you hone your skills with courses like Customer Focus. Earn badges to share on LinkedIn and your resume. Access more than 40 courses trusted by Fortune 500 companies.
Learn how to keep your customers—and their most important needs—front and center.