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How a Single Pricing Change Cut Returns 25 Percent
Returns cost retailers over a trillion dollars annually, but most solutions focus on logistics—not psychology. In this episode, Lucas and Luna examine how a major online fashion retailer reduced returns by 25 percent with one simple change: removing the free-return label and charging a flat five-dollar fee. They explore the behavioral economics behind the move—why a small friction point makes customers more deliberate in their purchases—and why the policy actually increased net profit per order. Lucas cites internal data from a 2025 pilot that tested the change across 500,000 orders, and Luna…
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