Return Attribution and Repurchase Behavior: Exploring Sustainable Return Management in Apparel Retailing

Although product returns present significant challenges for retailers, the service recovery paradox suggests they can also generate value. When return services are managed effectively, they can offset initial customer dissatisfaction and increase repurchase likelihood beyond what would occur without a return. However, prior research often treats returns as homogeneous, overlooking how different return types trigger distinct customer responses. Using transaction-level data from 27,178 orders at a major U.S. online apparel retailer between 2016 and 2019, this study investigates how customer-reported return reasons influence subsequent repurchase behavior. Return reasons are categorized by locus of responsibility—customer-, retailer-, or intermediary-attributed—and analyzed using logistic regression. The findings reveal substantial heterogeneity in post-return outcomes: customer-attributed returns are positively associated with repurchase, retailer-attributed returns are negatively associated, and intermediary-attributed returns show no significant effect. By demonstrating that return recovery effects depend on attribution, this study provides both theoretical insights and practical guidance for managing returns in a sustainable manner that enhances customer retention, improves operational efficiency, and strengthens the long-term sustainability of retail return management systems.