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PsyDocJoanne · 08-07-2008, 11:04 AM

Hi HarryT,

I would imagine what happens to a returned product depends on a lot of factors, not the least of which are 1) how much profit margin the product has built in to it, 2) if there's anything actually wrong with the product besides customer dissatisfaction, and 3) overall sales figures.

Thinking in general terms, not specifically ebook readers, I know there are some retailers (like cafepress.com) who don't even ask for a product to be returned to them, they just send you a new one and tell you to keep or discard the old one. I would imagine cafepress makes a healthy profit on each piece of apparel, so there's not much, if any, financial gain to getting the unwanted product back.

Nordstrom (a US department store) is known for its extremely liberal return policy. You can return anything to Nordstrom, any length of time after you bought it, and without a receipt. Even things like worn shoes, and clearly worn or stained clothing. I know very well what happens to Nordstrom returns--in my area, we have both a Nordstrom Rack and a Last Chance Outlet (owned by Nordstrom). Overstocks and new-condition returns go to the Rack, at a savings to the consumer anywhere from 25-75% off, and worn, questionable, or old stock returns go to Last Chance, where products are discounted even more heavily (50-90% off).

For electronics, many companies sell returns as refurbished or open box items (like Best Buy does, or like the SonyStyle outlet). Often times, the prices aren't even that much lower than retail, depending on the condition of the returned product.

In addition, some companies use returned and refurbished items to replace other consumer's items that failed or broke while under manufacturer's warranty.

Companies in the US know that in order to satisfy us picky, materialistic, deal-hunting Americans <insert sarcasm here>, customer service has to be a priority, and being able to make easy returns is a big part of that. Companies know that if they don't offer easy returns, consumers will take their business elsewhere. So I think many are willing to eat a bit of a loss in order to keep their customer base happy, and there are always people willing to buy a used or returned item to save some cash.

08-07-2008, 11:04 AM	#22
PsyDocJoanne Loves her 505 and her Z4! Posts: 157 Karma: 631 Join Date: Jul 2008 Location: Weston, FL Device: Sony PRS-505	Hi HarryT, I would imagine what happens to a returned product depends on a lot of factors, not the least of which are 1) how much profit margin the product has built in to it, 2) if there's anything actually wrong with the product besides customer dissatisfaction, and 3) overall sales figures. Thinking in general terms, not specifically ebook readers, I know there are some retailers (like cafepress.com) who don't even ask for a product to be returned to them, they just send you a new one and tell you to keep or discard the old one. I would imagine cafepress makes a healthy profit on each piece of apparel, so there's not much, if any, financial gain to getting the unwanted product back. Nordstrom (a US department store) is known for its extremely liberal return policy. You can return anything to Nordstrom, any length of time after you bought it, and without a receipt. Even things like worn shoes, and clearly worn or stained clothing. I know very well what happens to Nordstrom returns--in my area, we have both a Nordstrom Rack and a Last Chance Outlet (owned by Nordstrom). Overstocks and new-condition returns go to the Rack, at a savings to the consumer anywhere from 25-75% off, and worn, questionable, or old stock returns go to Last Chance, where products are discounted even more heavily (50-90% off). For electronics, many companies sell returns as refurbished or open box items (like Best Buy does, or like the SonyStyle outlet). Often times, the prices aren't even that much lower than retail, depending on the condition of the returned product. In addition, some companies use returned and refurbished items to replace other consumer's items that failed or broke while under manufacturer's warranty. Companies in the US know that in order to satisfy us picky, materialistic, deal-hunting Americans <insert sarcasm here>, customer service has to be a priority, and being able to make easy returns is a big part of that. Companies know that if they don't offer easy returns, consumers will take their business elsewhere. So I think many are willing to eat a bit of a loss in order to keep their customer base happy, and there are always people willing to buy a used or returned item to save some cash.