Sales returns

[nbalakers24]

hi,

What are two advanatges and disadvantages of a firm having a sales return policy?

[nbalakers24]

ty

[monokekie]

advantage: 1, attract more sales, customers more willing to buy 2, indicator of sales performance, further improvements can be made.

disadvantage: 1, decreases profit as revenue reduces. 2, some stock are deemed as unsuitable for returns (cut material, underwears, etc)

but Anthony Simmon's book mentioned only two points (one for advantage and one for disadvantage) =P

Edit: accidently deleted the previous post as i wanted to correct for some grammatical errors =_=, just typed it up again. lol