Are Free Returns Really Driving Growth - or Destroying Your Margins?

For years, retailers have treated free returns almost like free shipping: a friction-removing tool designed to improve conversion and attract new customers. But once shipping, processing, lost inventory time, markdowns and repeat return behaviour are taken into account, the economics can look very different. In this episode of the Shopreturns Podcast, Sabrina speaks with e-commerce expert and podcast host Chloë Thomas about the true cost of free returns and why retailers need to look beyond conversion rates when measuring their impact. Chloë explains how returns can become disconnected from profitability when marketing receives credit for the sale while operations and logistics absorb the cost of the return. She also explores how customer lifetime value, purchasing behaviour, product information and sizing consistency should all influence a retailer’s returns strategy.