Sunday, November 6, 2011

Unbelievable return policy -The U.S


Since I came here in LA, I often heard about the story of the great return policy in the U.S.
For example, After Christmas season, many people are in the long line in front of a customer service to return their gifts which they got as Christmas presents.
It's common in the U.S to put the gift receipt with their gift for the receivers if they don't like it.
Additionally, retailers never ask about the reasons and never check inside the package. Even if customers lose their receipt or cut price tags, they accept without complaints. Some people returns after one years since they bought it and some people returns even they use it many times. You can just say" I no longer need it, It's not good than I expected or I don't like it"

Meanwhile, in Japan, we are not allowed to return in these reasons only except when they have some troubles in their products.
If you don't like your present that you got from your friends, you have to give it to your other friends or selling it at net auction.
Of course , retailers can accept only new one that are not used.

So, basically in the U.S, customers have a big advantage in their purchasing compared to Japan.
They don't need when they decide to buy, because they can return anytime ,any reasons.
But, the problem is that a lot of people misuse the return policy. For examples, They purchase a party dress and some accessories for a party.
Then, they return these and they get money back. It looks like a free rental dress.

Why do most of U.S retailers accept these kind of return policy? It's easy to answer that they need to increase the customer retention rate.
Also, they can push manufacturers all of the costs caused by customer's returns.
That's why they welcome returns without any checking.

According to research, 92% of American consumers are always concerned about retailer's return policy. They think that they want to buy something with better customer policy. It means that no return policy means no customers.
Surprisingly, the average of return rate was 20% in 2006. It was approximately 4600 billion dollars. Especially, when it comes to swimming wear, it increase to 60%. Which means that many people return them after they use them in the summer. In Japan, it's only 3%.

Some manufacturers are trying to sell these kind of return product as factory sale or employees sale.
But even if they do so, tons of restock products still remain as industrial trash.
As you know, it's not good for the environment.
Unfortunately, it is the real American products cycle.  

In contrast, Japanese people think deeply before they buy. They only buy as much as they need and when they need it.
Because, they have a nice policy in their life. It is "Mottainai" (What a waste)
Japanese people think that the bare essentials of consumption is very smart.

I wonder that Japanese style is much better to fit for efficient life than the U.S's.
We can export these kind of our good culture to the U.S.
We no longer have enough space for trash in the Earth.



Revised Jun 3 2011

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