hard · GMAT Verbal

After online retailer Verdant Home introduced free returns on all orders, the percentage of orders that were later returned fell from 22 percent to 15 percent over the following year. Yet the total dollar value of merchandise returned rose by roughly 18 percent over that same year.

Which of the following, if true, most helps explain both the drop in the return rate and the rise in the total value of merchandise returned?

  1. Customers began risk-free ordering of multiple pricier variants and keeping only one, raising order value and each return's worth.
  2. Verdant Home improved the accuracy of its online size guide for clothing during the same year, reducing the number of orders placed in the wrong size.
  3. Verdant Home's total number of orders placed increased by only about 2 percent during the year in question.
  4. Verdant Home expanded its customer service phone support to include weekend hours during the same year.
  5. Return shipping had historically cost customers an average of several dollars out of pocket before the free-returns policy began.

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