More online stores allow customers to keep returns. What to know before trying it
Buying online is quick, but returning can be a hassle. Now, many retailers are updating their return policies to change that. While some online retailers have begun charging fees for returns, others are taking a different approach. Roughly 33 percent of stores are now allowing customers to keep some of the items they’re looking to return and receive a refund, according to logistics technology company Optoro. Why the change? Not necessarily to make things easier on consumers. It’s because the average return costs companies a lot of money, specifically in shipping and operation costs. According to a 2023 report from Optoro, processing returns can cost between 20 and 39 percent the cost of the original item, and online purchases have around an 18 percent higher return rate than those made in store, according to the National Retail Federation. Kyle James, founder of the retail blog Rather Be Shopping, said that in addition to Amazon, he’s noticed retailers like Walmart, Target, Chewy, Wayfair, Zappos, Costco, Kohl’s and Home Depot allowing customers to keep certain returns. “The secret sauce I’ve noticed is items that are $20 or under, items that have been opened, kind of your big and bulky items that a lot of times it costs more for the retailer to have you send it back in for them to, you know, just tell you to keep it. And for them, it kind of builds customer loyalty,” said James. James said the returns that consumers are most likely to get to keep are inexpensive, difficult to restock, small electronics, low-cost clothing and opened food or beauty products. “A lot of it is done with AI now,” he said. “It’s not somebody sitting behind a desk saying, ‘Hey, they can keep that.’ ‘No, they have to send this back.’ If your product fits into this criteria, often times they’re going to tell you to keep it and still refund you.” James warns against trying to “game” the system to get free stuff with these policies, because you could be banned from returning things in the future if you’re caught. Business Oct 14 Longtime Chicago-based hardware chain files bankruptcy, announces sale to rival Money 8 hours ago Illinois missing money checks are in the mail for 140K people. How to see if you're owed money But if you are shopping for something bulky like dog food, shoppers may want to look for an online store that has a “keep it” policy in place. That way, if the purchase doesn’t work out, you don’t have to lug that item back to the post office to return it.NBC 5 Investigates reached out to all the companies mentioned in our story, but didn’t hear back from Home Depot, Zappos, Chewy, Costco, or Kohl’s. You can find more information about their return policies by clicking the links below: Home Depot: https://www.homedepot.com/c/Return_Policy Zappos: https://www.zappos.com/c/shipping-and-returns Chewy: https://www.chewy.com/app/content/faq Costco: https://customerservice.costco.com/app/answers/answer_view/a_id/1191/~/what-is-costco%E2%80%99s-return-policy%3F Kohls: https://www.kohls.com/faq/article/893#:~:text=Need%20to%20Make%20a%20Return,purchase%20for%20Kohl’s%20Card%20transactions. An Amazon spokesperson told us, “On a very small number of returns, we allow customers to receive refunds without returning products as a convenience to customers. We also recently made it possible for our selling partners who use Fulfilment by Amazon in the U.S. to offer this option, as well.” In response to our questions about their “keep-it” return policy, a spokesperson for Wayfair told us, “Appreciate you thinking of us, however we’ll have to kindly pass on this opportunity at this time.” A spokesperson for Walmart told us, “We are constantly striving for a ‘no worries’ returns experience. We offer an extended holiday returns policy and flexible return options. Customers can choose how to return, whether that be from home, curbside while picking up an online order, by mail, or inside one of our stores. With our extended holiday returns window, most items bought between Oct. 1 and Dec. 31 can be returned until Jan. 31, or 90 days from purchase. Customers may visit walmart.com/returns for more information about our return policy and how we are making it easier for them this holiday season.”
Buying online is quick, but returning can be a hassle. Now, many retailers are updating their return policies to change that.
While some online retailers have begun charging fees for returns, others are taking a different approach. Roughly 33 percent of stores are now allowing customers to keep some of the items they’re looking to return and receive a refund, according to logistics technology company Optoro.
Why the change? Not necessarily to make things easier on consumers. It’s because the average return costs companies a lot of money, specifically in shipping and operation costs.
According to a 2023 report from Optoro, processing returns can cost between 20 and 39 percent the cost of the original item, and online purchases have around an 18 percent higher return rate than those made in store, according to the National Retail Federation.
Kyle James, founder of the retail blog Rather Be Shopping, said that in addition to Amazon, he’s noticed retailers like Walmart, Target, Chewy, Wayfair, Zappos, Costco, Kohl’s and Home Depot allowing customers to keep certain returns.
“The secret sauce I’ve noticed is items that are $20 or under, items that have been opened, kind of your big and bulky items that a lot of times it costs more for the retailer to have you send it back in for them to, you know, just tell you to keep it. And for them, it kind of builds customer loyalty,” said James.
James said the returns that consumers are most likely to get to keep are inexpensive, difficult to restock, small electronics, low-cost clothing and opened food or beauty products.
“A lot of it is done with AI now,” he said. “It’s not somebody sitting behind a desk saying, ‘Hey, they can keep that.’ ‘No, they have to send this back.’ If your product fits into this criteria, often times they’re going to tell you to keep it and still refund you.”
James warns against trying to “game” the system to get free stuff with these policies, because you could be banned from returning things in the future if you’re caught.
But if you are shopping for something bulky like dog food, shoppers may want to look for an online store that has a “keep it” policy in place. That way, if the purchase doesn’t work out, you don’t have to lug that item back to the post office to return it.
NBC 5 Investigates reached out to all the companies mentioned in our story, but didn’t hear back from Home Depot, Zappos, Chewy, Costco, or Kohl’s.
- You can find more information about their return policies by clicking the links below:
- Home Depot: https://www.homedepot.com/c/Return_Policy
- Zappos: https://www.zappos.com/c/shipping-and-returns
- Chewy: https://www.chewy.com/app/content/faq
- Costco: https://customerservice.costco.com/app/answers/answer_view/a_id/1191/~/what-is-costco%E2%80%99s-return-policy%3F
- Kohls: https://www.kohls.com/faq/article/893#:~:text=Need%20to%20Make%20a%20Return,purchase%20for%20Kohl’s%20Card%20transactions.
An Amazon spokesperson told us, “On a very small number of returns, we allow customers to receive refunds without returning products as a convenience to customers. We also recently made it possible for our selling partners who use Fulfilment by Amazon in the U.S. to offer this option, as well.”
In response to our questions about their “keep-it” return policy, a spokesperson for Wayfair told us, “Appreciate you thinking of us, however we’ll have to kindly pass on this opportunity at this time.”
A spokesperson for Walmart told us, “We are constantly striving for a ‘no worries’ returns experience. We offer an extended holiday returns policy and flexible return options. Customers can choose how to return, whether that be from home, curbside while picking up an online order, by mail, or inside one of our stores. With our extended holiday returns window, most items bought between Oct. 1 and Dec. 31 can be returned until Jan. 31, or 90 days from purchase. Customers may visit walmart.com/returns for more information about our return policy and how we are making it easier for them this holiday season.”
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