The BORIS Experience: Omnichannel Returns and Repurchase Intention

Researchers and managers have long focused on strategies to better manage retail return rates. However, management often overlooks the returns experience as a potential catalyst for customer engagement and repeat sales in the omnichannel setting. Incorporating buy-online-return-in-store (BORIS) practices has become an increasingly important part of a retailer's omnichannel strategy, emphasizing the returns process as a vital customer touchpoint. With its unique focus on the returns experience, this study delves into the dynamics of BORIS, specifically how the in-store returns experience enhances customer experience and influences customer repurchase intentions. The study explores retailer in-store returns capabilities and the related impact on customer repurchase intentions, providing a detailed understanding of the returns management process.

Consumer product returns are a recurring challenge for retailers and manufacturers incentivized by free shipping and free returns offered by retailers; a growing number of customers are bracketing, an activity described as buying multiple colors or sizes to keep the one that fits best and return the others. 63% of customers reported bracketing in a 2022 survey. As a result, products with no defects are often returned simply because of the mismatch between product characteristics and customer preferences. As omnichannel retailing evolves to integrate returns, information systems, and inventories, companies' returns processes have grown increasingly complex.

The increasing number of returns in omnichannel settings pushes retailers to offer a flexible range of return options. Among all returns strategies, the buy-online and return-in-store (BORIS) option is a popular cross-channel returns strategy. The BORIS returns process constitutes the primary direct interaction between online customers and retailers in omnichannel retailing. The quality of this interaction is crucial for maintaining customer relationships. Enhancing perceptions of fairness during the returns process is essential for customer satisfaction and retention, highlighting the strategic importance of returns management in retail differentiation. Fair treatment in the returns process can mitigate initial dissatisfaction and contribute to sustainable customer relationships by offering a superior service experience during returns. Successfully managing BORIS returns can enhance customer satisfaction and loyalty, potentially increasing in-store purchases. However, research on the capabilities influencing the customer returns experience, particularly in the BORIS context, remains limited. Some researchers highlight service recovery resilience as a critical capability for ensuring procedural justice in service recovery and positively impacting customer satisfaction and loyalty in product replacement scenarios. Others explore how interpersonal and informational justice influence returns satisfaction, positive word-of-mouth, and trust.

We explore how the BORIS returns experience influences the retailer-customer relationships and customer shopping intentions. This study clarifies the current returns management process by addressing omnichannel returns through the following research questions: How does a retailer improve the customer's in-store return experience by utilizing available store resources? Secondhand, how does the in-store return experience impact customer repurchase behavioral intentions in omnichannel retailing?

Experimental Results

We employed a rigorous approach to ensure data quality. Respondents were screened for attentiveness. 343 responses were analyzed in an experiment designed to showcase consumer responses on a survey Likert-point scale. We ran a regression-based statistical analysis, and the findings are as follows:

The statistical analysis of the respondents suggests that the in-store returns experience significantly influences customer repurchase intentions. When retailers focus on the returns process as a vital customer touchpoint, retailers can enhance customer experiences and foster loyalty, which is one of the key takeaways from this research. The results indicate that retailers should leverage the insights gained from the study to optimize their omnichannel returns management strategies. By improving the returns experience, retailers can reduce return rates and enhance customer engagement and satisfaction, ultimately leading to increased sales and royalty utilizing buy online return in-store strategies.

Practical implications for management are as follows: retailers should focus on making returns more available to consumers and easier to process. This could lead to higher customer satisfaction and increased repurchase intentions. This aligns with the primary objective of the BORIS system, which is to enhance service quality in return. While implementing buy-online return in-store strategies could streamline the returns process for customers, it also presents significant operational challenges for store employees. Retailers must be aware of the strain that increased return volumes, especially during peak times like Amazon Prime Day and Black Friday, can place on staff and resources. Addressing these challenges is crucial for maintaining employee morale and overall store efficiency.

Retailers should also consider dedicating specific resources to improve the efficiency of the returns process. This could include establishing designated return counters and clear signage to guide customers, which can enhance the overall returns experience and reduce customer wait times. Retailers must also consciously manage the information they provide about the return policies and procedures. Clear communication could shape consumer expectations and perceived justice (customer’s perception of fairness) in the returns process, which is paramount for trust and loyalty. By tailoring return strategies to meet diverse customer needs, retailers can convert return experiences into opportunities for building long-term customer loyalty.

To read the full study, please follow the link in the citation below:

Hao, J., Richey Jr, R.G., Morgan, T.R. and Slazinik, I.M. (2024), "The BORIS experience: evaluating omnichannel returns and repurchase intention", International Journal of Physical Distribution & Logistics Management, Vol. 54 No. 11, pp. 44-81. https://doi.org/10.1108/IJPDLM-09-2023-0357