Encouraging bad behaviour

While flipping TV channels last evening (an activity I seldom undertake nowadays) I came across this new advertisement for Myntra.com:

I watched this advertisement 2-3 times, and to me the clincher seemed to be the fact that you can return goods to Myntra and get your cash back the same day.

The intention of the advertisement is clear – for someone who is uncomfortable with buying clothes online (like the woman in this advertisement), the fact that you can return the stuff and get your money back immediately can be a huge incentive to try.

The problem, however, is with the overall message it conveys. One of the biggest problems with online retail in India is the high rate of returns. Returns create friction in several ways – from the logistics cost to reversing payments to possible fraud to possible damage of goods. From this perspective, returns are undesirable behaviour as far as retailers are concerned.

In this context, it’s rather bizarreĀ that Myntra is putting out an ad that promotes the use of returns. While it might be a decent incentive to attract new customers and expand the market, the problem is that it encourages your existing customers (who are likely to transact more than new customers) to misbehave!

In other words, Myntra’s latest ad actually encourages undesirable behaviour from customers! I find it quite puzzling.

PS: On the other hand, Myntra’s competitor Amazon is actually making returns less friendly. If you return an electronic product now, you can only get a replacement, and not your money back.

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