Background: E-commerce has grown rapidly since the introduction of the Internet, changing consumer behavior and transaction patterns all over the world. Due to that, there has been an increase in CO2 emissions caused by both delivery of products and returns. Some organizations have tried to minimize their emissions by employing different types of policies that have not been perceived well by their customers.Purpose: The purpose of this thesis was to identify the impact of different return policies on consumer willingness concerning online purchases. Additionally, we also investigated consumers’ perceptions of AI-driven initiatives aimed at promoting sustainable return practices.Method: This study was based on a qualitative research approach. We followed an inductive research approach. The reason for this is that we wanted to understand the connections between different return policies and consumer willingness regarding online purchases. As well as the connections between consumers and their perceptions regarding AI-driven initiatives aimed at promoting sustainable return practices. The data was gathered through nine semi-structured interviews.Conclusion: Consumers are increasingly prioritizing convenience, transparency, and environmentally conscious practices. Retailers who can adapt their return policies to align with these evolving preferences, while effectively communicating their terms and conditions, stand to gain a competitive edge.