PayPal aims to boost online retailers by refunding cost of making returns

7 Apr 2016

In a bid to help facilitate international online shopping, PayPal has today rolled out a new tool that will enable customers to claim back the cost of returning unwanted goods.

In a recent PayPal survey, conducted by Ipsos MORI, it was revealed that more than a third (35pc) of online shoppers have been deterred from making international online purchases by the prospective cost of return shipping.

Many of those surveyed were in some of the world’s top export markets – like the US, China, France and Spain – with results suggesting that the option of free return shipping would make the participants more likely to engage in cross-border shopping.

In Ireland alone, 45pc of those surveyed said they would be more likely to buy from a website in a different country if they had the option to get a refund on return costs.

That makes PayPal’s Refunded Return Service invaluable, translating to a potentially humongous windfall for Irish (and international) businesses.

The Refunded Return Service, available to PayPal members in eligible markets, will cover return shipping costs for businesses and their customers.

Those who make payments through the service will now have the option to claim back the cost of returning unwanted goods, worldwide, up to the value of €30. They will be able to make 12 claims over a 12-month period.

Louise Phelan, PayPal’s VP of global operations EMEA, highlighted the potential benefits for Irish online retailers.

“Millions of people across the world shop on Irish sites every year. We now know that, by taking away one of the biggest barriers to international online shopping, we can increase that even further.

“PayPal has more than 179m active accounts around the world and can, therefore, help Irish online businesses reach an increased and lucrative global customer base.”

Main image via Shutterstock

Kirsty Tobin was careers editor at Silicon Republic