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Associate Professor

Joe Felan

Joe Felan is an Associate Professor of Management at the University of Arkansas at Little Rock. He earned his PhD in Production/Operations Management from the University of South Carolina, and holds an MBA and BBA from Baylor University. His research interests have included entrepreneurial activity, economic factors influencing startups, and angel investor behaviors, with publications in notable journals like the Journal of Research in Marketing and Entrepreneurship. In teaching, Joe offers courses such as "New Venture Launch," "Production/Operations Management," and "International Business Management." He has a rich history of contributing to the academic community with insights into business operations and entrepreneurship.

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Contributor Brief·Joe Felan · 1 article
Updated Oct 6, 2023

Remove return friction to build loyalty, not penalties

Felan argues that retailers fundamentally misunderstand return economics: charging fees and friction penalizes the wrong behavior and destroys loyalty precisely when customers are most engaged. Instead, optimizing reverse logistics—making returns frictionless—converts return events into loyalty signals and competitive advantages.

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article examined in provided corpus

“Removing friction from returns drives loyalty far better than penalizing customers for sending items back.”

Easy Returns Help Retain Customers

Return policy friction creates competing retention outcomes

Return fees deter future purchases3
Easy returns signal customer trust9
Friction optimizes costs but erodes loyalty4
Reverse logistics efficiency compounds retention8

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13%Return fees
Return fees deter future purchases
Easy returns signal customer trust
Friction optimizes costs but erodes loyalty
Reverse logistics efficiency compounds retention

reverse logistics

is the operational lever retailers overlook

Retailers are discovering that removing friction from returns drives loyalty far better than penalizing customers for sending items back.

Easy Returns Help Retain Customers

Instead of charging return fees, retailers should focus on optimizing reverse logistics.

Easy Returns Help Retain Customers

“Returns are not a failure—they are a retention opportunity.”

Themes:Invert return strategy from cost control to loyalty signalReverse logistics as competitive moat, not cost centerFriction in returns destroys customer lifetime value

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