Why Certain Retailers Allow Customers to Keep Merchandise after Submitting an Online Return Request

Why Certain Retailers Allow Customers to Keep Merchandise after Submitting an Online Return Request

Introduction

Customers frequently face a dilemma: should they return an item that they ordered but do not need or want? Many retailers, driven by customer satisfaction and the desire to prevent fraud, are now allowing customers to keep merchandise after they submit a return request online. This policy, while benefiting some consumers, poses significant costs for sellers and can encourage fraudulent behavior.

The High Cost of Returns for Sellers

The process of returning an item is far from free. For sellers, every minute of handling a return is costly. The costs involved include:

The cost of the return box, which is a total loss. Labor costs for packing the box, representing man hours. The cost of packing materials. Income tax deductions and the employer's contribution to Social Security and insurance. The time spent processing the order, including administrative overhead.

Some items might be so small that the cost of returning them is not even worth it. For example, if a customer orders cat food and receives dog food, the discrepancy might be significant. In such cases, it might be cheaper to keep the item than to return it, especially if the return process involves significant time and labor costs.

Examples of Invalid Returns

Several instances highlight the frequency of invalid return requests:

Cat Food vs. Dog Food: Ordering cat food and receiving dog food was a common mistake. In this case, the error was significant, and the buyer might have been surprised to find that the item was not what they ordered. Cheap Items: Other items were simply inexpensive, such as small gadgets or cheap utensils. Receiving these items in their original packaging, unopened, would have incurred significant costs for the seller to return them.

In one experience, a customer ordered cat food and received dog food. The mistake cost 30 dollars, which could easily match the cost of the return process. Instead of returning it, the customer gave it to a neighbor with a large dog, who was initially pleased but then refused Ol’ Roy Walmart brand when the "expensive stuff" ran out.

Preventing Frauds and Raising Prices

Sellers are increasingly facing the challenge of fraudulent return requests. Some customers purposefully order items they do not need, receive the return, and resell them for profit. This practice, known as refund reselling, is becoming a significant issue.

In the long run, the high costs associated with returns push sellers to raise their prices to offset their financial losses. This price increase affects all buyers, not just those who engaged in fraudulent activities. When shopping online, customers should read the listings carefully and only place orders if they are confident they will keep the item.

Conclusion

Many retailers are now allowing customers to keep merchandise after submitting a return request online, driven by both customer satisfaction and the need to prevent fraud. However, this policy comes at a significant cost for sellers. To mitigate these costs, customers should be cautious when submitting return requests and read the listing details carefully to ensure they make informed decisions.