My ecomm rule is:
"Doubt is a dealbreaker."
Whether the question is returns or something else. Few will open their wallet if they have doubt. Unlimited and free returns removed a large amount of doubt. If fact, as mentioned, it likely triggered more sales.
You'd have to spend a significant amount of marketing budget to get what Zappos did from their return policy and customer service. Those weren't expenses, they were investments.
This actually applies to all relationships.