Post-Purchase Trip Heterogeneity: Exploring the Impact of Free and Paid Return Deliveries on Shopping and Transport Mode Choices in the USA

Abstract

This paper explores aspects of the post-purchase trips generated by the necessity to return purchased clothing to the shops. Particular focus is given to online shopping that has become common for clothing purchases. This study’s novelty lies in delving into the underlying reasons behind post-purchase trips, particularly those initiated when customers seek to return clothing to retailers. It examines the impact of free and paid return delivery options as key factors driving consumers’ decisions in relation to clothing returns. The study consists of two branches and leverages the random utility maximization theory. The first branch focuses on the impact of free and paid return options on the preferred shopping channels by utilizing a stated preference dataset collected from 507 US online shoppers. The second branch of this study employs the revealed preference dataset and aims to explore the return trip behavior. The willingness-to-pay values estimated for the free return delivery option are higher among female online shoppers compared with males—$7.42 and $6.65 per delivery, respectively. It was found that among the identified “returners,” 84.62% of males and 79.91% of females showed a strong reliance on private cars for their return trips. The potential environmental consequences of return trips were evaluated, focusing on the case of the USA. Additionally, the estimated marginal probability effect revealed that factors such as an aging population, car ownership, and number of children in households positively influence car usage for post-purchase trips. The study’s implications for stakeholders are discussed.