Effect of product delivery policy and return policy on customer purchase decision on ecommerce websites

Abstract

E-commerce platforms have captured a substantial portion of the retail spend and it is increasing at a fast pace. The return policy and the delivery policy has been identified as two important aspects which influence the buying decision of the customers. We have conducted secondary research and qualitative research to find out the factors of return policy and delivery policy which affect the purchase intention of the customers and formulated hypotheses based on the same. We then conducted explorative cum quantitative research in order to prove these hypotheses. From this research we have come to the conclusion that factors like leniency of return policy, promptness of return, delivery time flexibility, speed of delivery have a positive effect on the purchase intention of the customers. Also, we have found that presence of the option of product replacement, cash on delivery option, and zero delivery charges have a positive impact on the purchase intention. These effects are studied in details and managerial recommendations based on the findings of the research have been provided in this paper.