This is one of the least publicized of some policies. America’s largest retailer: We may give the customer a full refund and ask them to keep it. Unnecessary items Too.
No-return refunds are a tool that more retailers are using. satisfy online shoppers Reduce shipping fees, processing time, and other huge costs for returned items.
companies such as AmazonFor some products, Walmart and Target not worth the cost Or it’s too much trouble to go back. Consider a $20 T-shirt. There will be a $30 shipping and handling fee for collection. There are also disposable items that may be difficult to resell, such as plastic straw packaging, and medicines that may not be safe to resell.
Analysts say companies that offer no-return refunds do so on a somewhat sporadic basis, typically reserving options for lower-priced items or items with limited resale value. But some online shoppers said they were also allowed to keep more expensive items.
Dalya Harrell, 48, recently ordered a desk from Amazon that cost about $300 and received a refund without having to return it. When Harrell received the desk, he noticed that several important parts were missing, making it impossible to assemble. She requested a replacement from the New York Lice Detection and Removal Service office because the product was out of stock and was unable to obtain one within a reasonable time.
Harrell, who regularly buys towels and other products from Amazon for her job, said her team contacted the company’s customer service line. She was pleasantly surprised to hear that she could receive a refund without having to send the desk back.
“It’s one less headache,” Harrell said. “It was really nice not having to make an extra trip to the post office.”
She used parts of the desk to build makeshift shelving in her Brooklyn office.
mysterious process
The retail practice of letting customers keep their products and get their money back isn’t a trade secret, but how it works is shrouded in mystery. Companies are reluctant to disclose the circumstances under which they issue refunds without returns. for concern beyond the possibility of return fraud.
No-return refunds are being expanded in at least some retailers, even if brands don’t publish the details of such policies on their websites.
Amazon, which industry experts say has been a practice for years, announced in August that it would expand the option to third-party sellers, who account for the majority of sales on the e-commerce giant’s platform. Under the program, sellers using the company’s fulfillment services in the U.S. can choose to offer traditional refunds to customers for purchases under $75 without being obligated to return ordered items. .
Amazon did not immediately respond to questions about how the program would work. But in public, they are marketing no-return refunds more directly to overseas sellers and those offering cheaper products. Products sold on a future section of Amazon’s website will also allow U.S. shoppers to buy low-priced items shipped directly from China and receive refunds with no returns, according to a document obtained by The Associated Press. subject to.
In January, Walmart gave sellers on its growing online marketplace a similar option, leaving it up to them to set price limits and decide whether and how to participate.
Established in China E-commerce companies Shein and Temu Target, online shopping site Overstock and e-retailer Chewy for pet supplies are also offering refunds without returns on a small number of orders. Some customers said they encouraged them to donate their unwanted items to local animal shelters.
Wayfair, another online retailer that has been cited by some customers for offering no-return refunds, did not respond to a request for comment about its policies.
When to decide who is eligible?
Overall, retailers and brands tend to pay attention to how often they let customers keep items for free. Many of them have implemented algorithms to decide who should and should not be given options.
To make the decision, the algorithm evaluates multiple factors, including how much to trust the shopper based on previous purchases. and come back – According to Sendar Shamis, CEO of goTRG, a reverse logistics company that works with retailers such as Walmart, patterns, shipping costs, and demand for products in the hands of customers.
Optoro, a company that helps Best Buy, Staples, and Gap Inc. streamline returns, has observed that retailers are assessing the lifetime value of their customers and extending a kind of unofficial and discreet no-return refund. did. loyalty benefitssaid CEO Amena Ali.
The king of online retail seems to have validated that the process works that way.
Amazon said in a statement that it is offering no-return refunds on a “very small number” of items as a “customer convenience.”
The company also said it has heard positive feedback from sellers about a new program that allows them to tell customers they can keep some products and still get a refund. Amazon said it was monitoring signs of fraud Set eligibility criteria for sellers and customers. It did not provide additional details about what would be included.
Online shopping and return costs
Some retailers are also reinforcing the generous return policies they’ve had for years. Encourage online ordering. Shoppers who used to enjoy shopping on their computers or mobile phones have become accustomed to loading products. digital shopping basket for the purpose of returning the product I didn’t like it in the end.
During the COVID-19 pandemic, online shopping has also seen significant growth as homebound consumers have reduced their visits to stores and stores. relied on sites like Amazon For everyday items. Retailers have talked in recent years of increased return volumes, rising inflation, and higher costs to process returns. personnel costs.
According to the National Retail Federation, U.S. consumers returned $743 billion worth of items last year, representing 14.5% of purchased items, up from 10.6% in 2020. 2019the value of returned merchandise reached $309 billion, according to loss prevention firm Appriss Retail.
About 14% of returns were fraudulent last year, costing retailers $101 billion, according to a joint report by the National Retail Federation and Appris Retail. The problem ranges from low-level fraud, such as shoppers returning clothing they’ve already worn, to more complex tactics by fraudsters, who return shoplifted items or items purchased with stolen credit cards.
to Prevent excessive returnsH&M, ZARA, and J.Crew have started charging customers restocking fees in the past year. Some companies have shortened return periods. Some shopping sites, including Canadian retailer Ssense, have threatened to kick frequent users off their platforms if they suspect they are abusing their policies.
However, not all retailers view frequent repeat users the same way. Ali said such customers may be considered “good returners” if they purchase and keep more items than they are returning.
“Often, our most profitable customers tend to be repeat customers,” she said.
