Modern Retail Podcast
· with Samantha Gold and Arin Schultz
· January 24, 2026
· 26 min
Summary
This episode unveils the true financial burden of 'free returns' for ecommerce businesses, illustrating how brands like Motette and Naturepedic are strategically overhauling their return policies. It's a must-listen for operators looking to balance customer satisfaction with sustainable logistics and profitability in their returns strategy.
Key takeaways
Conduct customer polls to inform return policy changes, as Motette did, to balance customer expectations with business viability.
Implement comprehensive product information, detailed sizing guides, and strong customer support to proactively reduce return rates, similar to Naturepedic's successful strategy.
Differentiate between genuine defects and 'change of mind' returns, exploring varied solutions like exchanges or partial refunds to manage costs effectively.
Analyze and account for invisible costs beyond shipping, such as restocking fees, product depreciation, and administrative overhead, when formulating return policies.
Consider using restocking fees strategically, as Motette plans to, to offset costs while communicating value clearly to customers.
On this week's episode, special projects editor Melissa Daniels takes a deep dive into how brands are shaking up their returns playbook. As many as 72% of brands are charging for returns these days, according to the National Retail Federation, but that's a major customer pain point. In turn, it's an area of business that brands are constantly evaluating to make sure their return policies make logistical and financial sense while still providing a good customer experience.
Daniels speaks with Samantha Gold, founder of sleepwear brand Motette, and Arin Schultz, chief growth officer at mattress brand Naturepedic, about the changes they're making to their return policies to make them more customer-friendly without taking a hit on the costs associated with processing returns. They get into:
The invisible costs of free returns, like shipping rates and warehouse restocking fees
Why Motette is planning to roll out free returns following a customer poll
The ways Naturepedic got its return rate to less than half of the industry average
Frequently asked about this episode
What does this episode say about brand strategy?
Conduct customer polls to inform return policy changes, as Motette did, to balance customer expectations with business viability.
What does this episode say about cost optimization?
Implement comprehensive product information, detailed sizing guides, and strong customer support to proactively reduce return rates, similar to Naturepedic's successful strategy.
What does this episode say about customer experience?
Differentiate between genuine defects and 'change of mind' returns, exploring varied solutions like exchanges or partial refunds to manage costs effectively.
What does this episode say about returns management?
Analyze and account for invisible costs beyond shipping, such as restocking fees, product depreciation, and administrative overhead, when formulating return policies.
What does this episode say about brand strategy?
Consider using restocking fees strategically, as Motette plans to, to offset costs while communicating value clearly to customers.
