PayPal Looks to Drive Ecommerce in Canada with Free Return Shipping Service

PayPal this week announced the launch of a new “Return Shipping on Us” service in Canada.

By directly addressing a concern of online shoppers, PayPal says this service aims to boost consumer confidence and help drive online retail by refunding return shipping costs on eligible online purchases within Canada and around the world.

A study from Ipsos reports that 40 per cent of Canadians are worried about ordering the wrong item online and not being able to return it. A further 27 per cent said they have been forced to pay for shipping back items in the past year, with the majority (65%) saying it cost them more than $10 each time.

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“Canadians are warming up to online shopping, but uncertainty around returns can make people think twice about clicking the buy button,” says Kerry Reynolds, Head of Consumer Marketing, PayPal Canada. “With our new service, we are providing people with an option to return items purchased online that don’t fit or match their expectations.”

PayPal’s Cross-Border Consumer Research 2015 revealed that 10.7 million Canadians engage in cross-border online shopping, with 38 per cent saying that if free return shipping was offered, they would be more likely to buy online from another country. A quarter of Canadians who shop from international websites, and nearly 40 percent who do not shop cross-border, mentioned that return shipping costs are holding them back.

PayPal now offers Return Shipping on Us in nearly 40 countries.