Why do stores throw away returns?

Stores throw away returns because it often costs more to process and resell an item than to dispose of it, with optoro estimating that every year, U.S. returns create almost 6 billion pounds of landfill waste. The decision to throw away returns is largely driven by the high cost of processing and the labor-intensive nature of handling returns, making it more economically viable for retailers to simply discard the items.

Understanding Return Policies

The Complexity of Returns

The world of returns is complicated and expensive, with some companies opting to resell returned items, while others may choose to donate, salvage, or recycle them, and in some cases, dump them in a landfill. To complement this explanation, here are 15 FAQs that delve deeper into the intricacies of returns and their impact on retailers and the environment:

1. Do stores resell returned items?: Not always; due to the time and labor required to sift through returns, many retailers sell them to third-party liquidators.
2. What percent of returns are thrown away?: Experts estimate that retailers throw away about a quarter of their returns.
3. What happens to most returned items?: The fate of returned items varies; some are resold, others are told to keep the item and issued a refund, while many end up in landfills.
4. Why returns are bad for the company?: Returns can lead to a loss of customer loyalty and potential future sales, as customers may not return due to a disappointing experience.
5. Do companies throw away returns?: Yes, many companies throw away returns, especially if the cost of processing exceeds the resale value.
6. Do returns hurt stores?: Returns are expensive for sellers, with shipping costs often surpassing the potential resale price of the item.
7. Do stores track how many returns you do?: Many retailers keep a database of customer returns to identify chronic returners and potential fraud.
8. What is the most returned item?: According to surveys, clothing is the most returned item category, with 26% of respondents choosing this option.
9. What stores are telling you to keep your returns?: Retailers like Walmart, Target, and Amazon offer returnless refunds for certain items, where customers are allowed to keep the product.
10. Where do most returns go?: Unfortunately, a significant portion of returns end up in landfills, contributing to waste and environmental concerns.
11. What does Target do with its returns?: Target aims to donate, salvage, recycle, or properly dispose of returned items that cannot be resold.
12. What do stores do with used returned items?: The approach varies; some stores resell used items, while others may recycle or dispose of them.
13. What does Home Depot do with all their returns?: Home Depot sells returned items in bulk, often through auctions, to liquidators.
14. Where do Amazon returns really go?: Amazon has multiple options for handling returns, including reselling to other liquidators, returning to suppliers, donating to charities, and recycling.
15. Can you get flagged for too many returns?: Yes, customers with a history of excessive returns may be flagged in a retailer’s system, potentially leading to return policy restrictions.

Conclusion

In conclusion, the practice of throwing away returns is a complex issue influenced by economic, environmental, and logistical factors. Understanding the reasons behind this practice and the various approaches retailers take to handle returns can provide valuable insights into the retail industry and its impact on the environment. By recognizing the importance of sustainable practices and efficient return handling, consumers and retailers can work together to reduce waste and promote a more environmentally conscious retail environment.