It will be interesting to see how to two bridge the gaps from opposite sides. Amazon moving from online to physical | Walmart moving from physical to online
If Amazon would pay for packaging too, the whole problem would be solved.
These are instead several small hassles, many separated in time, each requiring low level focus and effort. Maybe a customer doesn't have packing tape in his house, a cardboard box (since he threw it out) or label glue, so he has to start by to going get those first, after having initiated the return by going to a web site, signing in, finding the right page, and filling out a form.
Customers don't have to do any of that with an in store return. You walk up to the counter at a store you're already going to anyway that day with a receipt and unwanted product and say "This didn't work" "This didn't fit" "I didn't like the color" or whatever, couple minutes, and you're done. WalMart in particular often gives cash refunds, as in actual currency in hand, after a minute or two at most at the counter.
Often analysts will say "It's not a big hassle, the customer shouldn't have a problem with it."
That is true. But what if there is a competitor who offers a product return experience without requiring a series of small hassles? Maybe they instead have a very tiny hassle? Could that difference have an effect on consumer choices? Could consumers perhaps purchase even more products because they are confident that any return won't be met with a series of tiny trifling minor hassles?
Some theorists say yes.
But you're still right. No matter how easy Amazon makes it to ship a return, its still easier to return in person. The only exception is if you're not already going to that store, or don't have a car to go back to the store. I could see Amazon's hybrid in-person/online return options being the best of both worlds.