Bricks Processing Returns for Clicks: Can Foes Become Friends?
By Ahmed Timoumi, Abhinav Uppal
Marketing Science
Citation
Timoumi, Ahmed., Uppal, Abhinav. (2025). Bricks Processing Returns for Clicks: Can Foes Become Friends? Marketing Science .
Copyright
Marketing Science, 2025
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Abstract
The rise of e-commerce has transformed the retail industry, changing consumer habits and forcing offline retailers to find new ways to stay relevant. Meanwhile, online retailers are seeking ways to enhance the flexibility of product returns as they lack a tactile shopping experience. As such, novel Buy Online, Return in Store (BORS) agreements between competing online and offline retailers, such as Amazon and Kohl's, are emerging. A BORS agreement allows customers who buy from the online retailer to make returns at the offline retailer's stores. In this paper, we examine the strategic impact of the agreement on price competition and profits. Our analysis suggests that the BORS agreement can create an aggressive environment for the offline retailer despite the additional footfall from returners. However, under certain conditions, the agreement creates an opportunity for the two retailers to carve out a section of the customer base that they can decide not to compete on. As a result of this strategic effect, the agreement can soften price competition, rendering both retailers better off when they are moderately differentiated. Interestingly, the agreement can also curb customers' showrooming behavior. We also investigate the welfare implications of the agreement and show that it can lead to a win-win-win situation for the online retailer, offline retailer and consumers.

Ahmed Timoumi is an Assistant Professor of Marketing at the Indian School of Business. His research and teaching interests include Retailing, Channel Management, Product Returns, and Sales Force management. He holds a Ph.D in Marketing from Koc University and was a visiting scholar at Kellogg School of Management, Northwestern University. His current research focus is on Omnichannel retailing and he co-manages the Omnichannel Retailing and Ecommerce initiative (OREI) at ISB. This initiative provides a platform for practitioners and scholars to solve real problems faced by retailers in India, workshops and training to retailers, and research opportunities to scholars.

Professor Timoumi received a degree in Mathematics and Physics from Institut Préparatoire Aux Etudes d'Ingénieurs de Tunis, and a degree in Engineering with a focus in Economics and Management from Ecole Polytechnique de Tunisie.

Ahmed Timoumi (1)
Ahmed Timoumi

Abhinav Uppal is an assistant professor of Marketing at the Indian School of Business. His research interests lie broadly in using microeconomic theory and game-theory based models to study topical problems in marketing. Currently, his work focuses on two main streams of research: the first is retailing, specifically how traditional retailers can counter modern threats; the second is competitive strategy and pricing, particularly how various market settings, structures, and strategic partnerships influence firms’ competitive behavior and marketing decisions.

Professor Uppal received his PhD and MS in Marketing from the Wharton School, University of Pennsylvania. He has previously worked on algorithmic trading strategies in equity markets at Tower Research Capital and conducted research on technology for emerging markets at Microsoft Research India. He holds a BTech in Computer Science from the Indian Institute of Technology (IIT) Delhi and is a KVPY and NTSE scholar.

Abhinav Uppal (2)
Abhinav Uppal