Brightline, an online clothing retailer, allows customers to return items within thirty days of delivery. Until last year, return shipping was free for all orders. The company now charges a flat fee of four dollars for returns, except for members of its premium program, who still return items free. Premium membership costs thirty dollars a year. After the change, the return rate fell from 22 percent to 17 percent of orders. Overall sales were slightly lower in the following quarter, but the company says that this was mainly due to a seasonal slowdown. An analyst has suggested that the fee might discourage first-time buyers. The company has not released data on the proportion of first-time buyers before and after the change.
Most of the retailer's customers belong to the premium program.