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Amazon, Target, and Walmart Let Consumers Keep Unwanted Products in Cost-Saving Push

Business Insider | January 13, 2021

Major retailers are opting to issue refunds while letting customers keep the merchandise they intended to return. This move is helping to lower returns processing costs and strengthen customer relationships.

Some companies are bringing in AI to decide whether a product is economically worth completing returns processing for, and others are simply allowing customers to keep products. This move comes after a booming ecommerce holiday season: US ecommerce sales grew 32% year over year (YoY) to surpass $188.2 billion, according to Adobe Analytics.

In anticipation of the returns frenzy, merchants introduced expanded returns policies earlier in the season. These efforts, combined with the latest returns initiative, enable retailers to better accommodate consumers.

Processing online returns can cost anywhere between $10 and $20. For items under that price point or large items that with high shipping charges, the cost-saving benefits for merchants become apparent.

And most consumers will probably appreciate the gesture since no action is required on their part—helping strengthen customer loyalty for retailers.

Read the full article here

#retail #retailgiants #returns #customerexperience

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