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Monday 18th July 2016

PayPal ‘Returns On Us’ Hits the UK

Tom Shackleton

PayPal’sReturns On Us’ scheme is one that has been running in various parts of the world since late last year, and last month saw it finally hit the UK. The service was initially due to finish at the end of August, but has now been extended to run through the rest of the year. So what is PayPal Returns On Us, and what does it mean for eCommerce retailers?

With Returns On Us, eligible PayPal account holders can claim back the cost of returning an eCommerce purchase from the online payments giant. Up to 4 claims for a maximum of £15 each are allowed before the scheme expires on 31st December. So, in essence, PayPal shoppers are getting free returns, wherever they shop online. This could hold great potential benefits for smaller, independent eCommerce retailers who wouldn’t usually be able to offer free returns. In fact, many retailers such as have already started promoting the offer to their customers.

The aim of the scheme is two-fold. Firstly, it of course encourages customers to buy through PayPal, particularly later in the year when the scheme runs through the holiday season. But the scheme also promotes small retailers and may give shoppers the confidence to purchase from eCommerce stores they have’t previously heard of, in the confidence that they can easily return an item. Anything that enables smaller eCommerce stores to offer services and features usually reserved for larger retailers like Amazon and ASOS, should be great for independents.

Free Returns

It will certainly be interesting to see how willing shoppers are to take up the offer. Free returns is sure to give customers added confidence when purchasing online, with 92% saying they are more likely to buy again if returns are easy. However, having to apply for a refund after paying for the return, rather than getting free returns up front, may put some shoppers off and limit uptake.

Offering £60 worth of free returns to every PayPal customer is not something that the company is likely to be able to sustain in the long run, so let’s see how online shoppers respond to the prospect of free returns for the rest of the year.

Are you an independent eCommerce retailer? Have you seen an uptake of PayPal Returns on Us amongst your customers? Maybe you’ve seen an increase in returns? Get in touch with us on Facebook or Twitter and let us know.

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