"Ah, just keep it."
-
Retailers surrender to unprecedented costs on online returns
Returning unwanted gifts this holiday season is becoming so expensive for retailers that they just might let customers keep the products — and issue refunds anyway.
Why it matters: The cost of online returns is soaring, contributing to increased prices, product shortages and supply chain stress.
The big picture: Returning a $50 item is expected to cost an average of $33, up 59% from 2020, according to Optoro, a returns processor.
Worker shortages and supply chain problems are taking a toll, Optoro CEO Tobin Moore tells Axios.
About three in 10 online purchases are returned, according to CBRE Supply Chain.
The impact: Retailers are expected to pass on the cost of returns in the form of higher prices.
“The consumer pays the price of a free return,” Columbia Business School retail studies professor Mark Cohen told Today.
Some retailers, namely Amazon, sometimes tell returners to keep it. It would cost them too much to process a return, Moore says.But, but, but: Don’t try to game the system to get free stuff.
“There's tracking involved that will determine whether or not consumers are taking advantage of the system,” adds Moore.
-
I once bought a big 4’x8’ item that arrived damaged, but still usable. I wrote the manufacturer providing some suggestions on beefing up the packaging to avoid similar damages in the future. I also noted in my message that I was not asking for any refund or exchange because I really do not want the hassle of repackaging a 4’x8’ item and hauling it to a shipper. The manufacturer sent me a replacement item, free of charge, with better packaging, and also let me keep the damaged item anyway. :man-shrug
