More Retailers Let Customers Keep Items for Free, Instead of Accepting Returns
Amazon, Walmart and many other retailers are realizing that sometimes it is cheaper to just let a customer keep an item, than having them initiate a return. Companies are implementing the use of artificial intelligence to decide whether it makes economic sense to process a return.
This could be the case for inexpensive items or even heavier large items that would incur hefty shipping fees. It is sometimes cheaper to just refund the full purchase price and let customers keep the products.
Amazon was probably the first retailer to start the trend, as it does most of its business online and shipping items back and forth is a must. But other chains have adopted it as well as online shopping becomes prevalent, especially during the Covid-19 pandemic, The Wall Street Journal reports.
I encountered this myself during the holidays. I ordered a hand held vacuum cleaner from Kohl’s, but when the package arrived, it contained a Giant Jenga Party Game by Hasbro instead. This is listed at $79.99 on the Kohl’s website and it is a rather large package. I contacted Kohl’s and explained the issue, and they said they would mail out my correct item the same day. Then I asked if they can provide a return label for that Giant Jenga Party Game, or if I should just dropped it off at my local Kohl’s. I was told to just keep it or donate it I don’t need it.
WSJ was told by a Target spokesperson that the retailer “gives customers refunds and encourages them to donate or keep the item in a small number of cases in which the company deems that option is easier than returning the purchase.” Walmart said that this option “is designed for merchandise it doesn’t plan to resell and is determined by customers’ purchase history, the value of the products and the cost of processing the returns.”
E-commerce returns saw a 70% jump in 2020 compared to the previous year Narvar reports, a company that processes returns for retailers. More than half of the increase was due to higher e-commerce sales, while more than a quarter was the result of shoppers’ not wanting to go to physical stores to return the items.
E-commerce returns could total as much as $70.5 billion for this past holiday season. That’s a 73% jump from the previous five-year average.
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For the specific case where a company mails you something you didn’t order (like the Jenga set) you are legally allowed to keep it without paying for it. Prevents companies from invoicing people for products they didn’t order.
The value of most consumer garbage is worth less than the cost to ship it, so it doesn’t surprise me. Who is spending $80 of their hard-earned money on a jenga set?