Amid record fuel prices and a supply chain crisis, retailers are weighing the option of allowing customers to keep any unwanted items instead of returning them.
Major retailers, including Target and Walmart, are reportedly struggling with too much inventory of certain items, costing them more than it’s worth to store them.
Mounting piles of returns are only complicating the inventory surplus.
“It would be a smart strategic initiative,” said Burt Flickinger, retail expert and managing director of retail consultancy Strategic Resource Group. “Retailers are stuck with excess inventory of unprecedented levels. They can’t afford to take back even more of it.”
Most often, retailers evaluate the condition of returned items and either put them back on the shelf or look to sell damaged items for less, often through liquidators overseas.
SPECIALLY TRAINED DOG SNIFFS OUT HIDDEN ELECTRONIC EVIDENCE IN PEDOPHILIA CASE
“Given the situation at the ports and the container shortages, sending product overseas isn’t really an option,” said Flickinger.
Returns are also a financial concern, costing retailers more money to process returned items than they can make on the sale.
Steve Rop, chief operating officer with goTRG, a company that works with companies such as Walmart, Amazon, and Lowe’s to process returned items, said the idea of allowing customers to just keep the item is not a new concept and could be beneficial in the long run.
“It started with Amazon several years ago,” Rop said. “They’re already discounting in stores to clear out products but, when there’s heavy discounting, buyer’s remorse goes up. People are tempted to buy a lot to only return it later.”
CLICK HERE TO READ MORE FROM THE WASHINGTON EXAMINER
Yet one major concern for a “keep it” policy would be fraud.
“One thing retailers need to track and ensure is that customers that become aware of the policy do not begin to abuse it, by seeking free merchandise over a series of orders by getting a refund but getting to keep the merchandise,” said Keith Daniels, a partner with Carl Marks Advisors.
