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This return is on PayPal

10/13/2015

PayPal is helping U.S. customers and retailers with a new shipping perk.



The payment services platform is expanding Return Shipping on Us, a service that refunds return shipping costs to consumers on eligible online purchases, to the U.S.



The service will now be available to PayPal users in the U.S., in addition to the nearly 40 markets in which it already exists. The timing near the holidays is not a coincidence. For the last several years, PayPal’s transaction data saw spikes occurring on Sept. 30, indicating that shoppers are starting their holiday shopping much sooner than Black Friday.



According to a PayPal and Ipsos’ cross border study, overall e-commerce spending is expected to grow by 10% in 2015 to $50 billion, but many shoppers are discouraged by added shipping costs. High return shipping costs are discouraging more than half of online shoppers globally from making repeat purchases and 48% of American shoppers view free return shipping as a necessity when purchasing online.



PayPal’s Return Shipping on Us reduces potential hassles of e-commerce for consumers while also helping to eliminate cross-border sales barriers for global online retailers. Shoppers who have activated the service and are looking to return an item will now be able to request a refund on return shipping costs within 14 days of mailing the return. Once approved, consumers will be reimbursed for costs up to $30 on eligible PayPal purchases from PayPal merchants worldwide.



“Return Shipping on Us can save consumers money, and give them more confidence when they shop knowing they will not incur return shipping costs if their purchase was not quite right,” said Jo Lambert, VP of consumer product & engineering, at PayPal. “Options like refunds on return shipping costs, formerly considered a perk or promotional tool offered by retailers, are now integral to getting a consumer to click that buy button online.”



“By providing this option, we are also supporting our merchants who are not already providing this type of service a potential lucrative revenue driver that can help grow their customer base to shoppers that may not have purchased from them previously, out of concern over shipping costs,” Lambert continued.



In the U.S., the service allows up to four refunds on eligible online purchases from Oct. 12, 2015 to Jan. 31, 2016.


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