The Modern Retail Podcast

The high cost of free returns

Jan 24, 2026
Arin Schultz, Naturepedic chief growth officer, explains LayerSwap, quick fixes for mattresses, and smarter logistics. Samantha Gold, founder of Motet, talks slim margins, a customer poll that changed her returns policy, and tech to simplify exchanges. They explore hidden costs of free returns, large-item disposal, and ways to make returns effortless for shoppers.
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INSIGHT

Free Returns Are A Costly Expectation

  • Free returns became an expectation because of Amazon but many brands cannot afford that margin.
  • Charging return fees often reflects brands covering real logistics and restocking costs.
ADVICE

Prioritize Returns To Protect Lifetime Value

  • Do prioritize free returns if customer lifetime value outweighs the per-order return cost.
  • Motet removed a $7 return fee to protect acquisition and repeat purchases.
ADVICE

Automate Returns To Reduce Admin And Encourage Exchanges

  • Do use return-technology vendors to automate refunds and steer customers to exchanges or store credit.
  • Loop and similar tools reduce backend admin and encourage retention via easy exchanges.
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