Many retailers offer “non-refundable refunds.” Don’t expect them to talk about it

(AP) — It’s one of the most under-advertised policies in some countries. largest US retailers: Sometimes they give customers a full refund and let them keep unwanted items too much.

Non-refundable returns are a tool that more and more retailers are using to make online shoppers happy and reduce shipping costs, processing time and other additional costs for returned products.

Companies like AmazonWalmart and Target have decided that some products not worth the money or difficulty returning. Imagine a $20 T-shirt that might cost $30 to ship and handle. There are also single-use items, such as packaging of plastic straws, which may be difficult to resell, or medications that may not be safe to re-enter the market.

Analysts say companies offering non-refundable refunds do so somewhat sporadically, usually reserving the option for low-priced properties or those with limited resale value. But some online shoppers said they were also allowed to stock more expensive items.

Dalia Harel, 48, recently received a refund without a refund after ordering a table on Amazon that cost about $300. Harel said when the table arrived, she noticed it was missing some key parts and was impossible to assemble. She was unable to request a replacement and receive one within a reasonable time frame for her New York lice detection service office because the item was out of stock.

Harel, who regularly buys towels and other products from Amazon for her business, said her team contacted the company’s customer service. She was pleasantly surprised to learn that she would receive a refund without having to send the table back.

“That’s one less headache,” Harel said. “We were very pleased that we didn’t have to make an extra trip to the post office.”

She used table scraps to create makeshift shelves in her Brooklyn office.

Mysterious process

While the retail practice of allowing customers to keep an item and get their money back is not a trade secret, how it works is shrouded in mystery. Companies do not tend to advertise the circumstances under which they issue non-refundable refunds. due to concerns over potential for return fraud.

Even if brands don’t provide detailed information about such policies on their websites, non-refundable returns are expanding at least at some retail locations.

Amazon, which industry experts say has been engaged in this practice for years, announced in August that it would expand this option to third-party sellers who generate the majority of sales on the e-commerce giant’s platform. Under the program, merchants using the company’s services in the United States can offer customers traditional cash back on purchases under $75 with no obligation to return the item ordered.

Amazon did not immediately respond to questions about how the program works. But publicly, the company has offered non-refundable refunds directly to international sellers and those offering cheaper products. Items sold on a new section of Amazon’s website that will allow U.S. shoppers to buy low-cost items shipped directly from China will also be eligible for a non-refundable refund, according to documents reviewed by The Associated Press.

In January, Walmart gave a similar option to merchants who sell items on its growing online marketplace, giving sellers the power to set price limits and determine whether and how they want to participate.

based in China e-commerce companies Shein and Temu they say they also offer non-refundable refunds on a small number of orders, as does Target, online retailer Overstock and online pet supplies retailer Chewy, which some customers say has encouraged them to donate unwanted items to local animal shelters.

Wayfair, another online retailer that some customers say offers no-refunds, did not respond to a request for comment on its policy.

Deciding who is eligible and when

In general, retailers and brands tend to be cautious about how often they allow customers to store items for free. Many of them use algorithms to determine who should be given this opportunity and who should not.

To make a decision, algorithms evaluate many factors, including how trustworthy a buyer is based on previous purchases. and return — models, shipping costs and product demand are in the hands of the buyer, according to Sender Shamis, CEO of goTRG, a reverse logistics company that works with retailers like Walmart.

Optoro, a company that helps optimize returns for Best Buy, Staples and Gap Inc., has seen retailers assess customer lifetime value and expand non-return options as a kind of informal, low-key approach. loyalty advantageAccording to CEO Amena Ali.

The king of online trading seems to be convinced that this is how the process works.

In a statement, Amazon said it was offering non-refundable refunds on a “very small number” of items as a “convenience to customers.”

The company also said it is receiving positive feedback from retailers about its new program, which allows them to tell customers they can keep some products and still receive a refund. Amazon said it is tracking signs of fraud and establishing eligibility criteria for sellers and buyers. He did not provide further details about what this includes.

Online shopping and return costs

Some retailers are also tightening the lax return policies they’ve long had for encourage online orders. Shoppers who enjoyed shopping on their computers or mobile phones became accustomed to downloading their digital shopping carts with the intention of returning the goods they in the end I didn’t like it.

Online shopping has also grown significantly during the COVID-19 pandemic as consumers working from home have curtailed their trips to stores and retailers. relied on sites like Amazon for everyday items. In recent years, retailers have said that it is becoming increasingly more expensive to process returns due to rising volume, rising inflation and labor costs.

U.S. consumers returned $743 billion worth of merchandise last year, or 14.5% of all the products they purchased, up from 10.6% in 2020, according to the National Retail Federation. In 2019The returned merchandise was valued at $309 billion, according to loss prevention company Appriss Retail.

Last year, approximately 14% of returns were fraudulent, costing retailers $101 billion in losses, according to a joint report from the National Retail Federation and Appriss Retail. The problem ranges from low-level forms of fraud (such as when customers return worn-out clothing) to more complex schemes by scammers who return store-stolen items or items purchased with stolen credit cards.

TO curb excessive profitsSome retailers, including H&M, Zara and J. Crew, began charging customers restocking fees last year. Others have shortened their return periods. Some shopping sites, such as Canadian retailer Ssense, have threatened to kick frequent returners from their platforms if they suspect their policies are being abused.

However, not all retailers treat repeat customers the same way. According to Ali, such customers can be considered “good returners” if they buy and keep many more items than they send back.

“Often, your most profitable clients tend to come back with high profits,” she said.