Question for business owners

The business owner's group appears all but dormant, so I thought I'd ask my question here. I tried googling for info, but I can't quite get the phraseology right and don't get the hits I'm looking for.

This is a question for business owners who sell products, not services.

I'm interested in your thoughts on an any-time return policy, such as the one from L.L. Bean. Essentially, you can return any product any time, even if you've worn it out from use. I suppose the expectation is that people would not take advantage, and I suppose if you're a multi-million dollar company you can afford to absorb the losses from people who do take advantage. But smaller businesses can't do that, and, in some cases, small businesses are in fact competing, to a degree with larger businesses, and this can put the Davids at a distinct disadvantage from the Goliaths. In any case, I'm interested in retail businesses who have used this policy or have had to deal with competitors who do.