> Why not just sell discounted "non-returnable" versions of products, the same as you can buy discounted non-refundable airline tickets? Because the feeling of

> Why not just sell discounted "non-returnable" versions of products, the same as you can buy discounted non-refundable airline tickets? Because the feeling of security the return policy gives customers makes it much more likely that they'll buy something. Most of the time, people buy things because they want them, so they won't return them even if they can. From a customer's perspective, having the return option is preferable to not having the return option. From a store's perspective, 150 customers buying the product and 5 of them returning it is likely preferable to 100 customers buying the product and 0 returning it. Additionally, forcing people to make an additional decision (whether to buy return insurance) is a great way to cause analysis paralysis and sell 50 instead of 150.