Major retailers like Walmart and Amazon now issue refunds for unsatisfactory or defective items. However, a new returnless refund policy means shoppers may not have to return the product to get their money back.
Amazon and Walmart don’t heavily publicize their returnless refund policies online to avoid return fraud. Only some shoppers or products may qualify.
Why do Amazon and Walmart offer returnless refunds?
Letting customers hang onto products they want to return isn’t just a good retention strategy. Shipping, handling, repair, and repackaging returns can cost companies.
Other retailers like Temu, Shein, and Target have also opted for returnless refunds for products shipped internationally, according to Tododisca, as shipping products overseas could knock out the profit from turning over the item.
According to Fast Company, Amazon has quietly offered returnless refunds “for years.” However, Amazon recently kicked off a program that would allow third-party sellers to opt into returnless refunds for products $75 and below.
What do shoppers think of returnless refunds?
The Daily Dot previously reported on a TikToker who praised the returnless refund policy in March, noting that returns can be a “waste of time” for some retailers.
“Some items aren’t worth the trouble to take back,” the TikToker says. “In some cases, shipping costs more than what the item is worth.”
However, others worry that the returnless refund policy could result in return fraud. A valid concern, considering Amazon’s reports of 144% increased return fraud between 2023 and 2024, per Forbes.
This return fraud may occur when shoppers incorrectly report products as incorrect or damaged, triggering a returnless refund.
If the product is in good shape, a shopper could end up with a new product and their money back in their account, which is likely why retailers will continue to keep their returnless refund policies hush-hush.
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