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Return to Sender
Sometimes it doesn't work out. You go shopping, or perhaps order something online. It arrives and then ... meh. It doesn't thrill you, at least not enough to justify the price. So you take it back. Next time, though, the store might tell you not to bother. CNN reportsthat big-name retailers are considering refunds without returns, because it's so expensive to deal with the merchandise customers decide they don't want. Here's a look at how some of your favorite retailers handle returned items.
Related: 28 Products Costco Will Take Back That Are a Pain to Return Anywhere Else
Target
Minneapolis-based Target often returns saleable items back to the shelf. Other items are gathered in batches in an effort to liquidate returns. Target liquidation auctions can be anything from a few pallets of goods to a truckload.
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Costco
Costco places returned products that are unused and undamaged, like home goods and electronics, back on the shelves — albeit at a discount. Used and slightly damaged returns are sent to a liquidator, and groceries are thrown away.
Related: 12 Costco Products You Can't Return
Walmart
In the store or online, Walmart resellsproducts returned in their original packaging. Products that have been opened or used are resealed and resold at a discount price or put on clearance. All returned groceries, defective, damaged, or recalled products are disposed of. A majority of Walmart's returned goods are now recycled. Liquidation companies can purchase returned goods in bulk for resale.
Amazon
Amazon — perhaps under pressure after a video showedthe company destroying returns — recently started a programwhere third-party sellers can donate their returns or extra stock to charities for giveaways instead of throwing them away. Amazon also sells less-than-perfect items through Amazon Warehouse.
Lowe's
Lowe's returns unopened stock to the shelves, and products that have been opened are sometimes sold at a discount. Others are offered through Direct Liquidation, where they're sold at auction.
Related: Tools That Are Still Made in America
Lululemon
The activewear company has debuteda program called "Like New."The initiative allows customers to trade in their gently used Lululemon items. The company says that all traded-in items will be cleaned, and the items that don't meet its quality standards will be recycled, although it's unclear what is meant by the term "recycled."
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As a seasoned retail industry expert with a deep understanding of the intricate processes involved in handling returns, it's evident that the landscape of product returns is evolving. The article you've provided sheds light on the challenges faced by big-name retailers in dealing with returned merchandise and explores how each one navigates this complex terrain. Let's delve into the concepts and practices discussed in the article:
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Refunds Without Returns Trend: The article introduces a growing trend among major retailers, where they consider offering refunds without requiring customers to return the merchandise. This practice is driven by the high cost associated with processing and managing returned items that customers decide they don't want.
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Target's Approach: Minneapolis-based Target is highlighted in the article for its strategy of returning saleable items back to the shelf. Additionally, unsold items are grouped in batches for liquidation auctions, which can range from a few pallets to entire truckloads. This approach aims to maximize the value of returned items.
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Costco's Handling of Returns: Costco places unused and undamaged returned products, such as home goods and electronics, back on the shelves at a discounted rate. However, used and slightly damaged returns are sent to liquidators, while groceries are discarded. This underscores the differentiation in handling various types of returned items.
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Walmart's Reselling Practices: Walmart, whether in-store or online, resells products returned in their original packaging. Opened or used items are resealed and sold at a discount or placed on clearance. Notably, all returned groceries, defective, damaged, or recalled products are disposed of. The article mentions that a significant portion of Walmart's returned goods are now recycled, and liquidation companies can purchase them in bulk for resale.
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Amazon's Response to Returns: Amazon, in response to concerns about the destruction of returned items, initiated a program allowing third-party sellers to donate returns or excess stock to charities for giveaways instead of discarding them. Additionally, Amazon sells less-than-perfect items through Amazon Warehouse, providing an outlet for such products.
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Lowe's Approach: Lowe's returns unopened stock to the shelves, while opened products are sometimes offered at a discount. Other items are directed to Direct Liquidation, where they are auctioned. This demonstrates a multi-faceted approach to handling returned merchandise.
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Lululemon's "Like New" Program: Lululemon, the activewear company, has introduced a program called "Like New." This initiative allows customers to trade in gently used Lululemon items. The company commits to cleaning all traded-in items, with those not meeting quality standards being recycled. The term "recycled" raises questions about the specific processes involved.
In conclusion, the article provides valuable insights into the evolving strategies employed by major retailers in managing returned merchandise, showcasing a spectrum of practices from restocking shelves to liquidation auctions and recycling initiatives. This comprehensive overview underscores the dynamic nature of the retail industry's response to the challenges posed by product returns.
