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Quote:So, what makes for a so-called "convenient" return policy? As it turns out, customers value being able to stay home when making returns as much as they do when armchair shopping, said Johnson.

That is, they want to be able to access the retailer's Web site, print a return authorization, and leave the package on their porch for pick-up by a mail carrier or delivery person. The challenge is making that process as seamless as possible for the customer while keeping costs as low as possible for the vendor, he explained.

To accomplish both goals, the returns system must address the wide range of circumstances under which a customer might choose to return an item, said Johnson. Just as in a brick-and-mortar store, online retailers face both legitimate and illegitimate returns and must choose which to accept. For example, computer software must have its shrink-wrap intact in order to be accepted back. Clothing items might need to meet a no-wear or no-laundering requirement.

"Return authorization engines are rules-based to determine whether or not a customer can have a return authorization," he noted. In other cases, a customer might be routed to a call center to work out the details of the transaction before a return authorization can be issued...