US consumers unwrap an early Christmas present this year from PayPal

October 15, 2015

Consumers in the US will be gifted with an early Christmas present this year in the form of a free return offering from the payment service Paypal for presents purchased between 13th October - 31st Jan 2016.

PayPal

Paypal intend to 'cover up to $30 of return shipping costs for up to four eligible PayPal purchases worldwide', as long as the consumer paid via Paypal in the first instance.

This news follows on from the research conducted by Paypal back in 2014, which showed that 48% of American shoppers view free return shipping as a necessity when they purchase online both domestically and cross-border. Paypals 'Return Shipping on us' will no doubt prove popular across the festive season as well as during the peak selling days Black Friday and Cyber Monday as customers have the added advantage of being able to send goods back free of charge.

Not only will this move make more people opt for paying by PayPal, but it will also encourage customers to shop from international retailers that they might not be familiar with. Customers are more likely to take a chance on such a retailer when they know that the return isn’t going to cost a dime.

In order to restrain customers from abusing this offer, Paypal has restricted the amount of returns to 4 per customer within the three month time frame. Target.com, the Apple Store, Macy's and Walmart are just some of the big names in the US that currently accept PayPal as a payment method.

It will be interesting to see what impact this service has on cross-border trade this Christmas, as well as whether this same scheme is rolled out beyond the US in future years.