Empirical Study On Factors Affecting Return Policy Of Online Retailers

Entering a new era of E-economy society, online shopping, the new form of shopping, is developing rapidly in China, it represents the future of consumption patterns. And more and more traditional retailers are entering into the rising market. However, with the rapid development of online shopping business, return of goods happens frequently. Under this background, the newly revised law “Protection of Rights and Interests of consumers” says that consumers shop through Internet, TV can enjoy “7 days return with no reason” service. Return policy is becoming the concerns of online retailers.Understanding the status of return policy of online retailers in China and the factors affecting the leniency of return policy can provide a scientific basis for retailers to set the return policy and enhance the after-sales service. Based on research literature, this paper constructs framework evaluating the return policy leniency of online retailers and factors model affecting the return policy.This paper classified return policy of online retailers into four major dimensions and each dimensions can be divided into different levels. The sample consists of 207 online retailers in China. The leniency level of return policy can be clustered into three levels. Furthermore, Multiple regression technique is employed to explore the factors affecting the return policy leniency that retailer scale, the website operation time, retailer quality, the types of main products of online retailers. In addition, Multiple regression technique is employed to explore the factors affecting the leniency level with different retailers that sell different types of products and the leniency level of four dimensions of return policy.The results show that there is much difference among the different online retailers return policy. The leniency level of return policy is closely related to retailer scale, website operation time, retailer quality, the different types of product. Moreover, retailer scale and the types of product have a significant impact on the leniency level of return policy. Based on the online retailers of different leniency level a, the paper gave some suggestions for retailers.