Retailers are increasingly adopting “keep it” or “returnless” policies for unwanted products. The adoption of these policies is a response to the rising costs associated with returns and the need to streamline operations and retain customers as recently reported by Reuters. By allowing shoppers to keep unwanted items that would be costly to return, retailers can save on transportation and reselling expenses. Fifty-nine percent of retailers now offer these policies, compared to 26% last year, according to the report, which cited data from returns services firm goTRG. The increase can also be attributed to retailers adopting technology to reduce excess costs associated with returns, the report said. Returns can be a drain on retailers’ profits, as they require additional resources to process and often result in items being sold at a discount or disposed of at a loss, per the report. The eCommerce boom during the early stages of the pandemic further accelerated the practice as shipping and delivery costs increased, and warehouses became overwhelmed. The adoption of returnless policies allows retailers to save on transportation, sorting and reselling expenses associated with returned items as outlined in goTRG's report. Additionally, it helps prevent supply chain backups and reduces the need for warehouses to handle and store unwanted products.
