AutopilotI get that there is a new CEO but we are in first week of November and questionable return policies have not changed.
There are really only a couple of different e-commerce return policies - free return shipping or customer pays return shipping. There is however an unlimited number of ways to think about return shipping. From a timing perspective the policy is a competitive advantage 11 months of the year. One month of the year it is a competitive disadvantage. It is such a drag the quarter is generally not profitable. I think this Q4 will do OK revenue wise but I don't think it will be profitable.
The Reitmans Banner is offering FREE shipping and returns for orders over $49. The RW & Co Banner is offering FREE shipping and returns for orders over $120. This won't surprise anyone but the number one reason for online returns is Fit. This won't surprise anyone either but the items most returned are form fitting holiday dresses.
With Amazon offering free shipping and the proliferation of digital platforms customers have countless options at their fingertips, making it essential for businesses to prioritize customer-centric logistics. Has Amazon invested in great physical stores? Zara has. Does Zara offer return free shipping? Hmm I wonder if Zaras encouraging customers to come to the store which is already paid for and has fitting rooms make a lot of sense?
Reitmans has 3 Banners which is a huge plus running small policiy experiments. Eliminating free shipping returns for PENN which orders, on average, will have lower gross margins would give great insights.