Zappos: 365 days to return it

Story.

Buying shoes online comes with uncertainty. You cannot try them on before ordering. A strict return policy adds another reason to hesitate.

Zappos turned that around with a 365-day return policy. Customers could order several pairs, try them at home and decide later. The long window made a large order feel less like a commitment.

Then another behaviour kicked in. Returning shoes still takes action. Keeping them is the default. Some customers who planned to send several pairs back simply did not.

The policy therefore did two jobs at once. It showed confidence in the service and made it easier to buy more.

Part 1 of 3

What they did.

Zappos gave customers a full year to return their shoes. The promise was simple, generous and easy to explain.

That lowered the perceived risk of ordering several pairs at once. Instead of choosing one pair carefully, customers could move the fitting room into their home.

Part 2 of 3

Why it works.

People avoid purchases when the cost of making the wrong choice feels high. A generous return policy makes the decision reversible.

It also changes the default. Once the shoes are in someone’s home, returning them requires effort. Doing nothing means keeping them. The policy removes friction before the purchase, while ordinary inertia works after it.

There is a social effect too. A generous promise can create reciprocity. Most people do not want to abuse a company that appears to trust them.

Part 3 of 3

Try it yourself.

Find the uncertainty that stops customers from buying: fit, timing, compatibility, commitment or fear of choosing the wrong option. Make that decision more reversible with a longer trial, a simpler cancellation policy or a clearer guarantee.

Then measure the whole system. Track order size, return rate, margin and repeat purchase, not just sales.

Try this

Pick one high-uncertainty purchase and write the most generous reversible promise you could responsibly offer.

More from Zappos: let’s wow this person.

Source: Zappos’ 365-day return policy and my original post of 23 November 2011. Shoes made with Midjourney.