Online retailers’ return policy and prefactual thinking: An exploratory study of USA and China e-commerce markets

PurposeThe purpose of this paper is to examine how return policies from online fashion retailers from different countries (USA, China and Western European) support consumer need for uncertainty avoidance and lower negative prefactual thinking in two different markets: China and USA.Design/methodology/approachA content analysis of eight international online fashion retailers’ return policies in both the China and USA markets was conducted.FindingsUS, Chinese and Western European online fashion retailers have more detailed return policies in the USA market compared to the China market. The results also indicate that US, Chinese and Western European online fashion retailers are more inclined to offer lenient return policies in the USA market which helps to lower consumer perceptions of uncertainty and negative prefactual thinking.Practical implicationsExploring online retailers’ return policies and how retailers respond to consumers’ level of comfort with uncertainty and tendencies to engage in negative prefactual within the context of different cultural markets offer valuable insight into standard retail practices necessary to retain profitability. Despite the perception of a “global” marketplace, nonstandardization of customer service is found.Originality/valueAlthough the ability of online retailers to reach global markets has increased, few scholars have studied return policies within different cultural contexts. This study focuses on return policy as a major influencer of prefactual thinking by reducing anticipated regret and increasing online purchase intention in a global cultural context. The research is not only beneficial to managers who seek to increase the profitability through globally strategic implementation of return policies but also contributes to the consumer regret and risk literature.