Amazon, Walmart swallow return costs | WARC | The Feed
You didn’t return any results. Please clear your filters.
Amazon, Walmart swallow return costs
A crucial aspect of any e-commerce business is the return rate, but following a bumper holiday season, for some retailers the cost of taking a product back is too high, so customers can keep the product and still get their refund.
Why it matters: Data from the returns processing firm Narvar shows that returns in 2020 were up 70% on the previous year’s numbers. While too many returns can be a ‘disease’ on a company that shreds profits, well-managed returns for a loyal, solid customer base can be an engine for growth.
Online shopping has shifted from big ticket items to more everyday essentials that cost less than the $10-20 that processing online returns tends to cost.
According to a story in the Wall Street Journal, some of the US’s largest online retailers have come to an AI-informed conclusion that returns aren’t worth their while.
- The phenomenon appears at both ends of the price spectrum: for small items under $10, the cost of processing is more than the price of the product. For large items, high shipping fees preclude returns.
- Different companies are doing it differently: For Target, in a small number of instances they will encourage the customer to donate the unwanted item; Walmart, meanwhile, reserves the ‘keep it’ option based on customer purchase history and whether the product is resalable. Amazon, for its part, provided no further details.
Sourced from Wall Street Journal, Spotify
Email this content