It depends on how well I know the item. If it's a commodity where I've bought exactly the same thing before (Charmin Extra-Strong Toilet Paper), then price rules all. If it's a new item that I'm not sure what I need about it (chef knife, bar stool, etc.), then seeing the item in person helps determine which item I need.
I'm not sure if you've used Amazon's return system before, but it's absolutely immaculate. In my opinion, this is more an issue of perception than reality - in many ways it's easier to return things to Amazon than to your local store.
Every time I've tried returning an item less than $20, they don't make me send the item back in. They just give me a refund and tell me to keep the item.
Amazon charges you for return shipping (or obliges you to use your own shipping, e.g. USPS) depending on the reason you are returning an item. If you are returning it just because you decided you didn't want it, they don't pay to take it back.
That was my experience with some housewares stuff, about three weeks ago. I decided to take the item down to the Post Office to ship it back rather than using Amazon's label, because it was cheaper that way. (If I'd used the label, they would have deducted $8 or something out of the amount they were going to refund me eventually; USPS was something like $4-5.)
