Consumer return rates have been steadily rising in recent years, resulting in growing costs for retailers who must manage the returns process and the disposition of returned products. This cost pressure is driven in part by extremely generous return policies, such as giving consumers a full...

Although generous return policies have been shown to have marketing benefits, such as a higher willingness to pay and a higher purchase frequency, counterbalancing these benefits is an increased volume of consumer returns, which presents significant operational challenges for both retailers and...