Return Policy:Where is the line between generating extra sales and losing money?

[mandy]

Customer Returns: 1 % returns = 10 % sales

Liberal customer return policies drive sales, no doubts. However, how nice is nice enough? Where is the line between generating extra sales and losing money? Here is a a simple framework to evaluate impact of your return policies on well-being of your business.

Your return costs = product cost + shipping + marketing...

full article: http://www.optimalogica.com/2008/12/cust...sales.html