Here's documented proof that doing free returns of merchandise is good business:
It may not be fair for online retailers to pay for returns that aren't their fault, but it makes them more money, a new study finds. A lot more money. Even though returns of consumer gadgets alone costs companies $17 billion in 2011, the rewards of adopting the Zappos model of free-return shopping can boost customer spending up to 357 percent.
For those that aren't aware of it, Zappos is an Amazon operation.