(AP) – One of some countries’ least publicized policies USA’s largest retailers: Sometimes they give customers full refunds and let them keep it unwanted items more.

Non-refundable refunds are a tool more retailers are using make online shoppers happy and reduce shipping fees, processing time and other balloon costs incurred from returned items.

Companies like AmazonSome items from Walmart and Target not worth the cost or difficulty returning. Consider that a $20 t-shirt can cost $30 in shipping and handling costs. There are also single-use items, such as a plastic straw pack that may be difficult to resell, or medications that are unsafe to remarket.

Analysts say companies that offer non-returnable refunds do so sporadically, usually reserving the option for low-cost objects or those with limited resale value. But some online shoppers said they were also allowed to keep more expensive items.

Dalya Harel, 48, recently received a non-refundable refund after ordering a desk from Amazon that cost nearly $300. Harel said when the table arrived, he realized it was missing some important pieces and was impossible to put together. Because the product was out of stock, he could not request a replacement and could not have it delivered to the New York lice detection removal service’s office within a reasonable time.

Harel, who regularly purchases towels and other items from Amazon for his business, said his team reached out to the company’s customer service line. He was surprised to hear that he would get a refund without having to send the table back.

“This means one less headache to deal with,” Harel said. “It was really nice for us not to have to make extra trips to the post office.”

He used table scraps to create makeshift shelves in his Brooklyn office.

A mysterious process

While the retail practice of allowing customers to keep their items and get their money back isn’t exactly a trade secret, the way it works is shrouded in mystery. Companies are not willing to publicize the conditions under which they offer non-refundable refunds due to concerns above potential refund fraud.

Although brands don’t provide detailed information about such policies on their websites, non-refundable refunds are becoming more common at at least some retail outlets.

Amazon, which industry experts say has been carrying out this practice for years, announced in August that it would expand this option to third-party sellers, which drive the majority of sales on the e-commerce giant’s platform. Under the program, merchants using the company’s fulfillment services in the US can choose not to offer customers a traditional refund for purchases under $75, as well as not requiring them to return the item they ordered.

Amazon did not immediately respond to questions about how the program works. But publicly, it has directed non-refundable refunds more directly to international sellers and those offering cheaper products. Products sold on a new section of Amazon’s website that will allow U.S. customers to buy low-cost items shipped directly from China will also be eligible for non-refundable refunds, according to documents seen by The Associated Press.

In January, Walmart offered a similar option to sellers selling products on its growing online marketplace, leaving it up to sellers to set price limits and decide whether they want to participate.

based in china e-commerce companies Shein and Temu Target, like online shopping site Overstock and pet products e-retailer Chewy, says it also offers non-refundable refunds on a small number of orders, as well as encouraging some customers to donate unwanted items to local animal shelters.

Wayfair, another online retailer said by some customers to offer non-refundable refunds, did not respond to a request for comment on its policies.

Deciding who is available and when

Retailers and brands in general tend to be careful about how often they allow customers to keep their products for free. Many use algorithms to determine who should be given the option and who should not be given the option.

To make the decision, algorithms evaluate many factors, including how much the shopper should be trusted based on their previous purchase. and I’m coming back – Models, shipping costs and demand for the product in the customer’s hands, according to Sender Shamiss, CEO of goTRG, a reverse logistics company that works with retailers like Walmart.

Optoro, a company that helps facilitate returns for Best Buy, Staples and Gap Inc., has observed that retailers are assessing a customer’s lifetime value and expanding return-free refunds as a type of unofficial, confidential payment method. loyalty advantageAccording to CEO Amena Ali.

The king of online retail confirmed that this is how the process works.

Amazon said in a statement that it was offering non-refundable refunds on a “very small number” of products as a “convenience to customers.”

The company also said it has received positive feedback from sellers about its new program that allows sellers to tell customers they can get a refund even though they keep some items. Amazon said it was tracking signs of fraud and determining eligibility criteria for vendors and customers. It did not provide additional details on what it involved.

Online shopping and return cost

Some retailers are also tightening the liberal return policies they have been implementing for a long time. encourage online orders. Shoppers who enjoy shopping on their computers or mobile phones have become accustomed to uploading their purchases. digital shopping carts to return items I didn’t like it after all..

Online shopping has also increased significantly during the COVID-19 pandemic, when stay-at-home consumers have reduced their trips to stores and shops. I was relying on sites like Amazon for everyday items. Retail companies mention that processing returns has become more expensive in recent years due to increased volume and rising inflation. labor costs.

According to the National Retail Federation, U.S. consumers returned $743 billion worth of products last year, or 14.5% of the items they purchased; this rate was higher than 10.6% in 2020. in 2019The value of returned goods was $309 billion, according to loss prevention company Appriss Retail.

Nearly 14 percent of returns last year were fraudulent, costing retailers $101 billion in losses, according to a joint report from the National Retail Federation and Appriss Retail. The problem ranges from low-level forms of fraud, such as shoppers returning clothes they’ve already worn, to more sophisticated schemes by fraudsters who return items stolen from the store or items purchased with stolen credit cards.

With discouraging excessive returnsSome retailers, including H&M, Zara and J. Crew, began charging customers return fees last year. Others have shortened their turn intervals. Some shopping sites, such as Canadian retailer Ssense, have threatened to kick frequent shoppers from their platforms if they suspect their policies are being abused.

But not all retailers view frequent shoppers the same way. Ali said such customers could be considered “returners” if they purchased and kept many more items than they sent back.

“Most of the time, your most profitable customers tend to be the ones that generate high returns,” he said.

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