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PayPal Oz Offers Free Returns

PayPal Australia has launched what it claims is a free return-shipping policy that will hopefully see customers able to be refunded for the cost of returning goods bought online that don’t live up to their claimed reputation.

The online payments company says it commissioned research that showed 90 percent of shoppers would be more likely to make purchases online if there was an option for free return shipping. 

Some 33pc of shoppers said the hassle of returning goods is one of the most common obstacles to shopping online. 
Under the new regime, it says customers who have opt for the free service will be able to request a shipping refund on the PayPal Web site within 14 days. Once approved, it says they be reimbursed for costs up to $45 on “eligible purchases”.
One question: will retailers’ prices rise to cover the costs of putative returns, making the “free” tag somewhat spurious?

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