This holiday shopping season, you might be surprised when you try to return an unwanted item. Instead of an online retailer confirming that a product can be returned for free—as many shoppers now expect—it might tell you to just keep it instead.
The general trend among retailers like Amazon in recent years has been to make it as easy as possible to return unwanted merchandise bought online. But in some cases, it costs more for a retailer to have an item shipped back—and sorted and resold, if not disposed of—than it’s worth. (There’s also the environmental cost to consider.)
This year, 59% of retailers offer “keep it” policies for such products, up from 26% last year, according to returns services firm goTRG, as Reuters reported. The firm surveyed 500 executives at 21 major retailers, among them Amazon and Walmart.
According to Reuters, shoppers that it interviewed said they had been told not to return products at Amazon, Chewy.com, eBay, Temu, Keurig, and Wayfair, with prices for the items ranging from $20 to $300.
Keep-it policies kept secret
Of course, information about keep-it policies is “not something that retailers want out there” given they might be abused, goTRG CEO Sender Shamiss told Reuters.
Nearly 90% of retailers revised a range of policies this year, including charging for some returns and encouraging shoppers to bring online returns to stores, Optoro CEO Amena Ali told the news agency. Her firm helps retailers manage and resell returned merchandise.
To be sure, shoppers might bristle at such changes, as Amazon recently learned. Earlier this year, it said that it would start charging shoppers $1 when they return purchases to a UPS store if there was a Whole Foods, Amazon Fresh, Kohl’s, or Staples store closer by. Amazon owns Whole Foods, and it has a partnership with Kohl’s and Staples allowing Amazon shoppers to make returns there.
Amazon shoppers were quick to complain, with many suggesting on social media that they would cancel their membership to Amazon Prime because of the charge. One advantage of returning via UPS is that shoppers can then track the package, which isn’t always true with returning a product directly to a retail store.
But Amazon and other retailers are looking to cut costs, and returns is an obvious area to focus on. Returns surged in 2021 and stayed elevated last year, when they accounted for $816.8 billion in lost sales across the U.S. retail marketplace, according to data from the National Retail Federation. The percentage of returns reached 16.5% last year, nearly double the pre-pandemic rate.The pandemic prompted many retailers to quickly implement or expand “buy online return in-store” opportunities, and that might have spurred more returns, said the NRF. One way Amazon is addressing the problem is by adding a “frequently returned item” label to troublesome products, encouraging shoppers to read reviews more carefully.
FAQs
The general trend among retailers like Amazon in recent years has been to make it as easy as possible to return unwanted merchandise bought online. But in some cases, it costs more for a retailer to have an item shipped back—and sorted and resold, if not disposed of—than it's worth.
Why do online retailers increasingly let customers keep returns and don't want you to know much about it? ›
Returns are so costly for retailers, some are telling customers to keep unwanted goods. Some retailers are telling consumers not to bother sending back goods they want to return for a refund because of how costly processing, repackaging and trying to resell merchandise can be.
What stores are telling you to keep your returns? ›
Reuters shared that companies including Amazon, Chewy.com, eBay and Wayfair are amongst those telling shoppers to keep unwanted purchases, even for products valued as much as $300.
Why will companies like Amazon, Walmart, and Target let you keep some products you want to return but issue you a refund anyway? ›
Big retailers adopt no-return return policies
Sometimes it's cheaper for a digital retailer to simply tell a customer not to bother to return an item but still give them a refund. "Major retailers have unlocked a strategic approach: allowing customers to retain certain items instead of returning them.
What places offer returnless refunds? ›
In some cases, it doesn't make financial sense to process the return, especially for small purchases. Walmart, Target, and Amazon are some of the major brands that offer so-called returnless refunds.
What items does Amazon not want returned? ›
Others
- Any product missing the serial number or UPC.
- Amazon Fresh and Grocery Products.
- Items with special shipping restrictions.
- Live insects.
- Some jewelry orders.
- Some health and personal care orders.
- Customized products.
Initially, returns were the only option for dissatisfied buyers. However, as the platform grew, so did the need for a more streamlined process. Recognizing the importance of customer satisfaction and the desire for a hassle-free experience, Amazon introduced returnless refunds as an alternative to traditional returns.
Why is Target not taking returns? ›
The item was opened. The item was non-returnable or non-returnable if opened. The online return center wasn't able to locate the order number or other information needed to process the return. The item is not a Target.com item.
Does Target throw away returns? ›
Target doesn't keep unexpected or ineligible (used, damaged, etc.) items sent to us. When able, we'll donate or recycle them. If you've sent something to Target and want it back, contact us at 1-800-591-3869.
What is the most returned item? ›
"When asked about "Most returned online purchases by category", most U.S. respondents pick "Clothing" as an answer. 24 percent did so in our online survey in 2023."
From the availability of staff, cleanliness of the store, and plentiful checkouts, Target is top-notch in my book. Moving through Target was also easier compared to Walmart, with less dodging of shopping carts and little to no bottle-necking from store staff restocking shelves.
What does Amazon do with returns? ›
The vast majority of returns are resold as new or used, returned to selling partners, liquidated, or donated. If an item doesn't meet Amazon's high standards to be put back on the virtual shelf and sold as new, it might qualify to be sold at a reduced price through Amazon Warehouse.
Will Amazon let me keep my return? ›
What is the Amazon Returnless Refund Policy? Basically put, 'refund without return' or the 'returnless resolution' is an Amazon policy where the buyer receives reimbursem*nt for an item without having to return said item. Yes, you read that correctly, they get to keep the item and their money.
What store has the most generous return policy? ›
1. Costco Known for its generous return policy, the warehouse retailer doesn't set a time limit to get a full refund for most items in its stores. Electronics and major appliances are exceptions.
What stores are stopping free returns? ›
Macy's, Abercrombie, J. Crew, H&M and other companies have all added shipping fees for mail-in returns. And it's not just the big mall brands, either. Eighty-one precent of merchants are now charging a fee for at least some methods of returns, according to Happy Returns, a logistics company that specializes in returns.
Who has the best no receipt return policy? ›
Kohl's. Kohl's "Hassle-Free Returns Policy” allows returns on most purchases within 180 days, no receipts required. If you don't have a receipt and an employee can't track down the transaction details, your refund will be in the form of a merchandise credit based on the lowest price on the item in the last 13 weeks.
What is the returnless policy? ›
Contrary to traditional returns where customers are required to send back the purchased items, returnless refunds allow customers to keep the items while still receiving a full refund.
Why do customers return their purchases? ›
Why Do Customers Return Their Purchases? The most common causes of purchase returns are unmet expectations, damaged or defective products, and incorrect fit. Any of these issues can be caused by failures on the merchant's part or by events the merchant had no control over.
Why do stores hate returns? ›
Retail returns are undesirable for obvious reasons: they mean both a decrease in revenue and an increase in costs. They also come with a sustainability impact as they add to your business's carbon footprint through shipping, packaging, and even the potential waste of the product itself.
Why do people shop online instead of in store? ›
The benefits are clear, especially for those who may struggle to find an hour or more a week to spend browsing the store shelves for groceries. Not only can you fill your cart from the comfort of your home, but you can also clip coupons online and even speed up the process by saving regular items in your app.
