Just Keep It
Returning an unwanted item is often a pretty straightforward process for consumers, the arguably most annoying part of which is sending the item back. But change is in the air…
An increasing number of retailers are now allowing customers to keep items they wish to return, while still receiving a full refund.
Since shipping costs often exceed the original value of a purchased product, many retailers are adopting this “just keep it” policy.
Cutting Their Losses
More than half of retailers (59%) are now offering “keep it” returns when the cost to return an item would exceed what it was originally worth, according to data from returns services firm goTRG. That’s up from just about a quarter of companies a year ago.
The change in policy is all about protecting profits. On average, a single return costs a retailer about $30. This figure includes sorting time, losses, and discounts offered for the resale of used or damaged items. In response to high return costs and loss of income, nearly all retailers adjusted their policies in some way this year, including offering store credit, charging a fee for returns, or requiring returns to be brought to a physical store.
Keep it on the Down-Low
Retailers don’t commonly advertise their returns policies out of worry that consumers could take advantage of them. After all, U.S. consumers are predicted to return $173 billion in goods following Black Friday and Cyber Monday shopping this year, a steep 28% increase from last year.
Looking for more stories like this? Check out On the Money — SoFi’s one-stop-shop for news, trends, and tips!
Please understand that this information provided is general in nature and shouldn’t be construed as a recommendation or solicitation of any products offered by SoFi’s affiliates and subsidiaries. In addition, this information is by no means meant to provide investment or financial advice, nor is it intended to serve as the basis for any investment decision or recommendation to buy or sell any asset. Keep in mind that investing involves risk, and past performance of an asset never guarantees future results or returns. It’s important for investors to consider their specific financial needs, goals, and risk profile before making an investment decision.
No brands or products mentioned are affiliated with SoFi, nor do they endorse or sponsor this content.
Communication of SoFi Wealth LLC an SEC Registered Investment Advisor
SoFi isn’t recommending and is not affiliated with the brands or companies displayed. Brands displayed neither endorse or sponsor this article. Third party trademarks and service marks referenced are property of their respective owners.