Shopping online is quick and convenient, but returning items can often be a hassle. Many retailers are now updating their return policies to make this process easier.
While some online retailers have started charging fees for returns, others have taken a different approach. According to logistics technology company Optoro, roughly 33 percent of stores now allow customers to keep some items they wish to return while still receiving a refund.
The motivation behind this change isn’t solely to benefit consumers; it primarily helps companies reduce costs. Returns are expensive, with significant shipping and operational costs involved. A 2023 report from Optoro revealed that processing returns can cost between 20 and 39 percent of the original item’s price. Additionally, online purchases have about an 18 percent higher return rate than in-store purchases, as reported by the National Retail Federation.
Kyle James, founder of the retail blog Rather Be Shopping, noted that retailers like Amazon, Walmart, Target, Chewy, Wayfair, Zappos, Costco, Kohl’s, and Home Depot are allowing customers to keep certain returns.
“The strategy seems to focus on items that are $20 or under, items that have been opened, and bulky products—as it often costs more for the retailer to process the return than to let the customer keep it. This approach also fosters customer loyalty,” James explained.
He highlighted that the items consumers are most likely to keep include inexpensive or difficult-to-restock items, small electronics, low-cost clothing, and open food or beauty products.
“A lot of this decision-making is now done with AI. It’s not manually determined by someone; if your product fits the criteria, they will often tell you to keep it and issue a refund,” James said.
He cautions against trying to exploit these policies for free goods, as this could lead to being banned from making future returns. However, if you’re purchasing something bulky like dog food, it might be beneficial to select an online store with a “keep it” policy. This way, if you’re unhappy with the purchase, you won’t have to deal with the hassle of returning it.
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