Gold Just Hit Another Record. This Junior Could Be Next.

This copper junior was the smallest company invited to a top global mining conference. With nearly 1B pounds CuEq and 50,000m of funded drilling, this story won't stay quiet for long.

Many retailers offer 'returnless refunds.' Just don't expect them to talk much about it

HALELUYA HADERO
November 05, 2024

It's one of the most under-publicized policies of some of the biggest U.S. retailers: sometimes they give customers full refunds and let them keep unwanted items too.

Returnless refunds are a tool that more retailers are using to keep online shoppers happy and to reduce shipping fees, processing time and other ballooning costs from returned products.

Companies such as Amazon, Walmart and Target have decided some items are not worth the cost or hassle of getting back. Think a $20 T-shirt that might cost $30 in shipping and handling to recover. There are also single-use items, such as a package of plastic straws, that might be difficult to resell or medicines that could be unsafe to market again.

Analysts say the companies offering returnless refunds do it somewhat sporadically, typically reserving the option for low-cost objects or ones with limited resale value. But some online shoppers said they've also been allowed to keep more pricey products.

Dalya Harel, 48, received a return-free refund recently after ordering a desk from Amazon that cost roughly $300. When the desk arrived, she noticed it was missing some key pieces and would be impossible to put together, Harel said. She couldn't request a replacement and have it within a reasonable time for the office of her New York lice detection removal service because the item was out of stock.

Harel, who routinely buys towels and other products from Amazon for her business, said her team reached out to the company's customer service line. She was pleasantly surprised to hear she would get a refund without having to send back the desk.

"That's one less headache to deal with," Harel said. "It was really nice for us to not have to make an extra trip up to the post office."

She used the desk pieces to create makeshift shelves in her office in Brooklyn.

A mysterious process

While the retail practice of letting customers keep merchandise and get their money back is not exactly a trade secret, the way it works is shrouded in mystery. Companies are not keen to publicize the circumstances in which they issue returnless refunds due to concerns over the potential for return fraud.

Even if brands don't provide details about such policies on their websites, returnless refunds are expanding in at least some retail corners.

Amazon, which industry experts say has engaged in the practice for years, announced in August that it would extend the option to the third-party sellers who drive most of the sales on the e-commerce giant's platform. Under the program, sellers who use the company's fulfillment services in the U.S. could choose to offer customers a traditional refund for purchases under $75 along with no obligation to return what they ordered.

Amazon did not immediately respond to questions about how the program works. But publicly, it has pitched returnless refunds more directly to international sellers and those who offer cheaper goods. Items sold in an upcoming section of Amazon's website, which will allow U.S. shoppers to buy low-cost goods shipped directly from China, will also be eligible for returnless refunds, according to documents seen by The Associated Press.

In January, Walmart gave a similar option to merchants who sell products on its growing online marketplace, leaving it up to sellers to set price limits and determine if or how they want to participate.

China-founded e-commerce companies Shein and Temu say they also offer returnless refunds on a small number of orders, as does Target, the online shopping site Overstock and pet products e-tailer Chewy, which some customer said had encouraged them to donate unwanted items to local animal shelters.

Wayfair, another online retailer cited by some customers as offering returnless refunds, did not reply to a request for comment on its policies.

Deciding who is eligible - and when

Overall, retailers and brands tend to be careful about how often they let customers keep items for free. Many of them are deploying algorithms to determine who should be given the option and who should not.

To make the decision, the algorithms assess multiple factors, including the extent to which a shopper should be trusted based on prior purchasing - and returning - patterns, shipping costs and the 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 streamline returns for Best Buy, Staples and Gap Inc., has observed retailers assessing the lifetime value of a customer and extending returnless refunds as a type of unofficial, discreet loyalty benefit, according to CEO Amena Ali.

The king of online retail appeared to verify the process works that way.

In a statement, Amazon said it offers returnless refunds on a "very small number" of items as a "convenience to customers."

The company also said it's hearing positive feedback from sellers about its new program that authorized them to tell customers they could keep some products and still be reimbursed. Amazon said it was monitoring for signs of fraud and setting eligibility criteria for sellers and customers. It didn't provide additional details on what that encompassed.

Online shopping and the cost of returns

Some retailers also are stiffening the liberal return policies they long employed to encourage online orders. Shoppers who enjoyed making purchases on their computers or cellphones became accustomed to loading up their digital shopping baskets with the intent of returning items they ended up not liking.

Shopping online also grew significantly during the COVID-19 pandemic, when homebound consumers reduced their trips to stores and relied on sites like Amazon for everyday items. Retail companies have talked in recent years about returns becoming more expensive to process due to the growing volume, rising inflation and labor costs.

Last year, U.S. consumers returned $743 billion worth of merchandise, or 14.5% of the products they purchased - up from 10.6% in 2020, according to the National Retail Federation. In 2019, returned merchandise was valued at $309 billion, according to loss prevention company Appriss Retail.

Last year, roughly 14% of returns were fraudulent, costing retailers $101 billion in losses, according to a joint report from the National Retail federation and Appriss Retail. The problem spans from low-level forms of fraud - such as shoppers returning already worn clothing - to more complicated schemes by fraudsters who return shoplifted merchandise or items purchased on stolen credit cards.

To deter excessive returns, some retailers, including H&M, Zara and J. Crew, started charging customers return fees in the past year. Others have shortened their return windows. Some shopping sites, such as the Canadian retailer Ssense, have threatened to kick frequent returners off their platforms if they suspect abuse of their policies.

However, retailers don't all view frequent returners in the same way. Such customers could be seen as "good returners" if they purchase - and keep - many more items than they send back, Ali said.

"Oftentimes, your most profitable customers tend to be high returners," she said.

Continue Reading...

Popular

Trump keeps saying the GOP mega bill will eliminate taxes on Social Security. It does not

WASHINGTON (AP) — President keeps saying that Republicans' mega legislation will eliminate taxes on federal benefits.

How to Hack a $1.3T Market - Ad

Forget concrete. The new foundation for real estate success is digital, and Pacaso leads the way. Their tech unlocks a $1.3T real estate market. They've already earned $110M+ in gross profits in their operating history and reserved the Nasdaq ticker PCSO.

Bernie Sanders Shares First Thing He Would Do As President — And It Could Be A Jab At Elon Musk

Bernie Sanders lost the 2016 and 2020 presidential races. In a recent interview, Sanders shared what he would do first if he were president.

Quantum Stocks Surge And Stumble: Here's What Happened This Week

Quantum Computing announced a $200 million private placement, Microsoft's CEO said quantum computing could take scientific advancements to the next level and more from the week.

Elon's New Device Could Launch Biggest IPO of the Decade - Ad

Elon Musk's new device is being called a "game-changer"-and even the White House is using this tech. Jeff Brown says it could launch Musk's next trillion-dollar company and make early investors rich. You can claim a stake now for as little as $500.

Mark Cuban Raises Employee Wages After Learning Of Government Aid Dependence

Mark Cuban, owner of the NBA's Dallas Mavericks, expressed his dismay upon learning that some of his employees were reliant on government aid programs.

Copper's Rally Is Back. This $31M Junior Is Sitting on a Potential Fortune - Ad

A high-grade copper-gold discovery in Quebec just delivered extremely high grade intercepts. Valuation? Just $31M. With copper breaking out, the timing here could be perfect. Get the symbol here.

Trump vents online about service provider after conference call marred by glitch

WASHINGTON (AP) — On Monday afternoon, the president of the United States was just another person complaining online about his service provider.

Meta, KKR, Lululemon And An Industrial Stock On CNBC's 'Final Trades'

Experts predict KKR, Lululemon, Meta Platforms, and Rockwell Automation to perform well.

Buffett's Favorite Chart Just Hit 209% - Here's What That Means For Gold - Ad

Buffett's favorite market signal just hit its highest level in history-stocks are more overvalued than 1929. He's sitting on $325B in cash... and may be about to buy one overlooked gold miner. I've identified it-plus 4 others with up to 100X potential.

Elon Musk Says 'Clear Path' To Restoring Hearing With Neuralink, But The Deaf Community Want To Have Their 'Say'

Elon Musk's Neuralink faces backlash from the deaf community after proposing brain implant technology to restore hearing, with deaf adults calling for inclusion in the research process.

How to manage ADHD at work and turn it into a strength

NEW YORK (AP) — Jeremy Didier had taken her son to a psychologist for a when she spotted an article about women with the condition. As she read it in the waiting room, she thought to herself: They're describing me.

A Historic Gold Announcement Is About to Rock Wall Street - Ad

The greatest investor of all time is about to validate what Garrett Goggin has been saying for months: Gold is entering a once-in-a-generation mania. Front-running Buffett has never been more urgent - and four tiny miners could be your ticket to 100X gains.

Lisa Murkowski Defends Alaska Carveouts As Elizabeth Warren, Bernie Sanders And Rand Paul Condemn Trump's 'Big Beautiful' Bill: 'Not Good Enough For The Rest Of Our Nation'

Senators across party lines are fiercely divided over Donald Trump's $3.3 trillion "Big Beautiful Bill," which narrowly passed the Senate and now heads to the House amid concerns over debt, tax cuts, and social program rollbacks.

Big Banks Pass Fed's 2025 Stress Test With Ease—But Some Say It Was Too Easy

All major U.S. banks passed the Fed's 2025 stress test, but critics say easier assumptions may have padded the results.

The Tesla Shock Nobody Sees Coming - Ad

While headlines scream "Tesla is doomed"...Jeff Brown has uncovered a revolutionary AI breakthrough buried inside Tesla's labs. One that is helping AI escape from our computer screens and manifest itself here in the real world all while creating a 25,000% growth market explosion starting as early as July 23rd.

Apple Sues Ex-Engineer Over Alleged Theft Of Vision Pro Secrets As Snap Prepares AR Glasses Launch

Apple files lawsuit accusing former senior design engineer of stealing confidential information before leaving to work at Snap.

Copper's Spiking - And This Junior Has the Grades to Match - Ad

Copper is climbing again - and this time, it looks tariff-proof. A $31M junior just posted nearly 1B lbs of copper equivalent. With insiders and institutions piling in, this could be the next breakout.

North Koreans swim and play at a beach resort touted as a boost for tourism

SEOUL, South Korea (AP) — North Koreans swam, rode water park slides and enjoyed other water activities at a newly opened state media reported Wednesday, as the country largely maintains a ban on the entry of foreign tourists.

Is Elon's Empire Crumbling? - Ad

Jeff Brown - the legend who called Tesla and Nvidia early - says Elon is about to launch a $25T AI revolution. This isn't another chatbot. It's real-world AI that could 14X the impact of ChatGPT. But after July 23rd, it may be too late.

Bernie Sanders Warns Of 'Concentration of Ownership' In US Companies: 'That's Power'

Bernie Sanders claims Wall Street giants hold majority of US corporations, giving them power to steer economy & politics. Wants reform & better wages

Investors snap up growing share of US homes as traditional buyers struggle to afford one

LOS ANGELES (AP) — Real estate investors are snapping up a bigger share of U.S. homes on the market as rising prices and stubbornly high borrowing costs freeze out many other would-be homebuyers.

Buffett's Next Big Investment... Is It This Gold Play? - Ad

Buffett's $325B cash pile is losing value fast - and one gold miner could be his next move. It trades at a 43% discount to its free cash flow, and fits his criteria to a T. With gold set to soar and valuations stretched, now's your chance to front-run Buffett before August 15.

CoreWeave Stock Rallied On Thursday: What Happened?

Shares of CoreWeave Inc. (NASDAQ: CRWV) traded higher on Thursday with gains accelerating into the close. The company announced it became the first AI cloud provider to deploy NVIDIA Corp's (NASDAQ:NVDA) new GB300 NVL72 platform.

Amazon's AI-Powered 4-Day Prime Day Will Drive Billions In Sales

Bank of America analyst maintains Buy rating on Amazon with $248 price forecast, noting 11th Prime Day event to have extended 4-day window with AI savings tools and estimated $21.4B in GMV.

Gold Just Hit Another Record. This Junior Could Be Next. - Ad

This copper junior was the smallest company invited to a top global mining conference. With nearly 1B pounds CuEq and 50,000m of funded drilling, this story won't stay quiet for long.

What's in the latest version of Trump's big bill that passed the Senate

WASHINGTON (AP) — Republicans are getting closer to the finish line in getting their tax and spending cut bill through Congress with a final House vote possible on Wednesday.

How to Hack a $1.3T Market - Ad

Forget concrete. The new foundation for real estate success is digital, and Pacaso leads the way. Their tech unlocks a $1.3T real estate market. They've already earned $110M+ in gross profits in their operating history and reserved the Nasdaq ticker PCSO.

Elon's New Device Could Launch Biggest IPO of the Decade - Ad

Elon Musk's new device is being called a "game-changer"-and even the White House is using this tech. Jeff Brown says it could launch Musk's next trillion-dollar company and make early investors rich. You can claim a stake now for as little as $500.

Autonomous Vehicles Hit Their 'ChatGPT Moment' — Best Stocks To Watch Now

Autonomous vehicles are entering their ‘ChatGPT moment' as AI unlocks real-world deployment. Discover 28 top stocks in a $1.2 trillion market.

DOGE-Fame 'Big Balls' Is Reportedly Leaving The Government Department Once Headed By Elon Musk — Dogecoin Price Rises

Another key figure at the Department of Government Efficiency, nicknamed “Big Balls”, has reportedly stepped down, following the exit of Elon Musk from the federal initiative meant to reduce wasteful spending.

Copper's Rally Is Back. This $31M Junior Is Sitting on a Potential Fortune - Ad

A high-grade copper-gold discovery in Quebec just delivered extremely high grade intercepts. Valuation? Just $31M. With copper breaking out, the timing here could be perfect. Get the symbol here.

650% Later, Rocket Lab CEO Isn't One Bit Worried

Rocket Lab CEO Peter Beck highlights strong demand for launches from both commercial and government customers.

Trending Now

Information, charts or examples are for illustration and educational purposes only and not for individualized investment management This message contains commercial elements, such as advertising. We only send these offers to those who have opted in to our newsletter. Past performance is not indicative of future results. For these reasons we strongly suggest trading in a DEMO/Simulated account. The information provided by us is for educational and informational purposes only. We make no representations or warranties concerning the products, practices or procedures of any company or entity mentioned or recommended and have not determined if the statements and opinions of the advertiser are accurate, correct or truthful. If you use, act upon or make decisions in reliance on information contained or any external source linked within it, you do so at your own peril and agree to hold us, our officers, directors, shareholders, affiliates and agents without fault.

Copyright markethundred.com
Privacy Policy | Terms of Service