It’s not just a matter of luck — more and more retailers are implementing “keep-it” policies on returns when the cost of the return outweighs its price, according to a new report from returns management platform goTRG.
Just in time for the busy holiday shopping season, the survey, which polled 500 U.S. retailers, found that 59% offer keep-it policies when the item is not “economical to ship back.” Reasons include the item being low-cost or the mere fact of inventory surplus — 68% of retailers said their inventory levels are much higher than they were a year ago.
For certain items, like bathing suits or underwear, where hygiene comes into the equation, this policy from retailers is nothing new. At Amazon, for example, there are at least 15 things you can’t return, as previously reported.
Return Policies and Retailer Strategies
However, retailers are using other, less appealing tactics to reduce profit losses, too. According to the survey, many have taken to shortening their return windows. This change might be deemed especially tricky for those who got their shopping done early, inspired by Black Friday and Cyber Monday deals and even summer promotions like Prime Day.
Moreover, another tactic to look out for is the push toward “BORIS” — or, buy online return in store. More and more retailers are turning to this strategy in part to drive traffic to the store, where it might be more likely that someone will make another purchase in tandem with their return.
Running the Risk of Fraud
Consequently, retailers who have returnless policies run the risk of fraud — consumers figuring out what and how they are enforcing the rule and then using it as a way to get items for free, according to media reports.
The spotlight on the cost of returning items follows a surge in online shopping, along with returns, during the peak of the COVID-19 pandemic. A recent report found that retailers are also attempting to alleviate costs by offering discounts to people who do not return their items or even charging people to make returns online.
Even Amazon, as the report indicated, has attempted to reverse course to save money by showing customers which products have higher return rates than others. “By showing the return rates, the company hopes to help customers make more informed purchase decisions,” according to the findings.
As the holiday season gets into full swing, it’s worth keeping holiday returns guidelines in mind as you shop at some of your favorite retailers. Companies such as Costco and Target, among others, are all still offering discounts post-Black Friday and Cyber Monday.
