Zappos discovered that its best customers (highest lifetime value) had the highest return rates, which at first seemed counterintuitive until analysis revealed that high-LTV customers understood how to use Zappos, ordered more, returned more items, but also kept more, indicating they were willing to try new things because the liberal return policy removed purchase risk.

causalpending

Speaker

Alfred Lin

Evidence Quote

our best customers at the highest ltvs return the most and I'm like that that is crazy how is that possible

Source

Sequoia VC Reveals: The One Trait That Built Airbnb, DoorDash & ZapposThe Knowledge Project Podcast
Created: 8/11/2026, 1:30:28 AM

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