Amazon, Walmart, Target and other retailers are "dodging" returns because they increase costs and reduce profits!

It is learned that recently, according to foreign media reports, because returns and refunds will increase costs, retailers such as Amazon, Walmart and Target have been "evading" this.

According to research by return management company Appriss Retail, e-commerce returns can cost an average of $10 to $20 per item, with shipping costs approaching 15% to 20% of the profit on the item. For low-priced products, the cost of returns can exceed the profit on the product.

In addition, for clothing and electronic products, refunds after customers try them on or try them out may affect the secondary sales of the goods, further reducing the profits earned by retailers.

It is learned that in order to avoid excessive shipping costs, retailers such as Amazon, Walmart and Target will let customers keep the original items or donate the products and pay a certain amount of compensation, because this is the lowest cost way to handle returned goods.

According to Appriss Retail, the way Amazon and Walmart handle returns may help them avoid a 6% drop in annual sales, which is enough to affect a company's profits.

Although Target and Home Depot now offer in-store returns for online purchases, Appriss Retail said: "Retailers can't continue like this because they simply can't afford it."

According to Appriss Retail research, the return rate for physical stores in the United States was slightly higher than 10% in 2020, while the return rate for e-commerce stores was as high as 20%. This is because online shoppers are more likely to buy products that are "not consistent with the actual product", including in terms of color, material and performance.

Editor ✎ Nicole/

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