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Yahoo
6 days ago
- Business
- Yahoo
Do retailers make it too easy to return items? Why shoppers love lenient policies.
Returns of items are both a fact of life for retailers but also a difficult balance to maintain as they try to keep customers happy while not losing money. For consumers, lenient return policies play a big role in where they choose to buy. But then there is also the dark side of returns, with criminal rings set up to take advantage of those lenient return policies. Returns cost retailers a lot of money: total returns were expected to top $890 billion in 2024, according to a December 2024 report by the National Retail Federation. Retailers estimated that 16.9% of their annual sales in 2024 would be returned. But shoppers also say return policies impact where they shop: 67% of shoppers said a negative return experience would impact whether they would go back to that retailer. In a survey by Forter of 4,000 shoppers in both the United States and the United Kingdom, 68% said they believe retailers make it easy to abuse flexible return policies. In fact, 49% admitted to abusing policies in the last year. Another 29% said they use the policies to avoid paying full price. Thirty percent said they use and return expensive wardrobe items they otherwise couldn't afford and that number spikes to nearly half or 46% for younger consumers. More than half, or 58% also said they open multiple online accounts to take advantage of promotions. Retailers have to navigate how to please customers while not losing money on returns, said Doriel Abrahams, principal technologist for Forter, a software company that helps digital commerce brands block fraud. "Clamping down too hard on policies to curb abuse could turn away good customers," Abrahams said, adding that nearly 1 in 5 consumers in the survey said they've stopped shopping with a brand that initiated more strict return policies. "Ultimately, blanket policies – whether that's charging for all returns or having zero restrictions – are bad for business. The goal is to block abuse, not loyal customers, "Abrahams said. Lauren Beitelspacher, a professor in the marketing division of Babson College in Wellesley, Massachusetts whose research includes return policies, said she was not surprised that shoppers abuse return policies, but she was surprised that a significant number admitted to it. The numbers are probably even higher than the 49% of people who admitted to taking advantage of lenient policies in the survey, she said. "Returns have always been a problem, but since the pandemic, it's been really bad," said Beitelspacher. Return policies got very generous during the Covid-19 pandemic when shoppers couldn't go to physical stores and online e-commerce began to explode, said Beitelspacher. But with online e-commerce, comes the lack of being able to feel an item or try it on. "So in order for retailers to minimize the consumers' risk they offer that free returns and free shipping and people just went nuts and took advantage of it," she said. Some retailers started quietly dialing back their return policies or charging for return shipping or restocking fees during the holiday season of 2023, but they didn't make a big deal of it so as not to alienate their customers, said Beitelspacher. "Returns are a big cost for online retailers although, arguably, they are part of the price of doing business in the ecommerce space. The problem is that the consumer rarely covers the full cost of returns, so it harms the bottom line," said Neil Saunders, a retail analyst at the research and analytics firm GlobalData. Tighter policies around returns, such as making the consumer pay, helps offset some of the cost but it also deters customers and can harm sales, so there is a balance to be struck, he said. Social media is full of videos of moms who brag that they have taken a years' worth of used kid clothes from the Target Cat & Jack brand back to Target for a refund or exchange for new clothes. But some shoppers say it is up to the Target store manager's discretion. Are the shoppers who are getting refunds or exchanges smart consumers or taking advantage of a lenient Target policy? Target customers can return the Cat & Jack items or any Target branded item for up to a year with the receipt or proof of purchase in the Target app, a Target spokesperson confirmed. This guarantee is in place because of the confidence the retailer has in the quality of what it is offering when guests shop Target's owned brands, the spokesperson said. Some retailers don't even want the returned product back. An Amazon spokesperson said customers are allowed to receive refunds without returning some products as a convenience to customers. That is allowed on a very small number of returns and helps keep prices low for customers, the spokesperson said. Some shoppers have shared on social media that Walmart in some cases also allows consumers to return an item and keep it. The retailer would not specifically address that claim when asked, pointing to its return policy, which does not have any details about keeping a returned item. A Walmart spokesperson added that she didn't have anything to add on its return policy, but pointed to the retailer's return policy, which says on most items shoppers have 90 days to return. However, in an online guide for its Marketplace or online site, which includes sales from third-party sellers, Walmart offers tips on how those resellers can implement a "keep it rule," allowing customers to keep the returned item. Love 'em or hate 'em?: What's in store for the future of self checkouts? How retailers are pulling back. Beitelspacher, the marketing professor, said retailers will allow customers to return an item on the theory that "the delight that you might feel might make you more of a lifetime customer." The cost of that item to gain the lifetime customer would be more than the cost of absorbing the cost for you to ship the item back, she said. But Beitelspacher also pointed out that Amazon's lenient return policies, while it may help shoppers have better feelings about Amazon, can hurt the many third-party sellers on the platform, who are actually taking the return hit. There's a big difference between a shopper who takes advantage of a retailer's lenient return policy and criminals making a business of bilking retailers through returns – and consumers who participate. Some shoppers purposely buy an item and "wardrobe" it, or wear it with the tags on and then return it, which is arguably gaming the system, said Eyal Elazar, head of market intelligence at Riskified, a company that helps e-commerce companies detect and prevent bad behavior. But criminal rings also exist to defraud retailers and some consumers are participating in this fraud, he said. Real shoppers are using cyber criminals to handle the return process for them, but with a twist, said Elazar. The criminals scam the retailers using methods such as disappearing ink on return labels, which shows proof that some package was scanned in and on its way back to the retailer. When that package doesn't arrive, the criminal can put pressure on the retailer to still give the refund. The customer gets to keep the item and some of the refund while the criminal also gets a cut, he said. The criminals love this method since they don't have to put out any investment to buy stolen credit cards or stolen inventory and are still earning money from the fraudulent returns, Elazar said. This new return fraud really ramped up after the Covid-19 pandemic when people stopped needing to sign for deliveries and when retailers were trying to figure out ways to make consumers happy with the increase in e-commerce and returns, he said. Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at blinfisher@ or follow her on X, Facebook or Instagram @blinfisher and @ on Bluesky. Sign up for our free The Daily Money newsletter, which will include consumer news on Fridays, here. This article originally appeared on USA TODAY: Don't like an item? Why shoppers love lenient return policies Sign in to access your portfolio
USA Today
6 days ago
- Business
- USA Today
Do retailers make it too easy to return items? Why shoppers love lenient policies.
Do retailers make it too easy to return items? Why shoppers love lenient policies. Show Caption Hide Caption How to give the best gifts all year long It's never too soon to start gift shopping for your loved ones! This simple tip will help you get them the perfect gift every time. Returns of items are both a fact of life for retailers but also a difficult balance to maintain as they try to keep customers happy while not losing money. For consumers, lenient return policies play a big role in where they choose to buy. But then there is also the dark side of returns, with criminal rings set up to take advantage of those lenient return policies. Returns cost retailers a lot of money: total returns were expected to top $890 billion in 2024, according to a December 2024 report by the National Retail Federation. Retailers estimated that 16.9% of their annual sales in 2024 would be returned. But shoppers also say return policies impact where they shop: 67% of shoppers said a negative return experience would impact whether they would go back to that retailer. Shoppers admit to abusing lenient return policies In a survey by Forter of 4,000 shoppers in both the United States and the United Kingdom, 68% said they believe retailers make it easy to abuse flexible return policies. In fact, 49% admitted to abusing policies in the last year. Another 29% said they use the policies to avoid paying full price. Thirty percent said they use and return expensive wardrobe items they otherwise couldn't afford and that number spikes to nearly half or 46% for younger consumers. More than half, or 58% also said they open multiple online accounts to take advantage of promotions. Retailers have to navigate how to please customers while not losing money on returns, said Doriel Abrahams, principal technologist for Forter, a software company that helps digital commerce brands block fraud. "Clamping down too hard on policies to curb abuse could turn away good customers," Abrahams said, adding that nearly 1 in 5 consumers in the survey said they've stopped shopping with a brand that initiated more strict return policies. "Ultimately, blanket policies – whether that's charging for all returns or having zero restrictions – are bad for business. The goal is to block abuse, not loyal customers, "Abrahams said. Return abuse is on the rise Lauren Beitelspacher, a professor in the marketing division of Babson College in Wellesley, Massachusetts whose research includes return policies, said she was not surprised that shoppers abuse return policies, but she was surprised that a significant number admitted to it. The numbers are probably even higher than the 49% of people who admitted to taking advantage of lenient policies in the survey, she said. "Returns have always been a problem, but since the pandemic, it's been really bad," said Beitelspacher. Return policies got very generous during the Covid-19 pandemic when shoppers couldn't go to physical stores and online e-commerce began to explode, said Beitelspacher. But with online e-commerce, comes the lack of being able to feel an item or try it on. "So in order for retailers to minimize the consumers' risk they offer that free returns and free shipping and people just went nuts and took advantage of it," she said. Some retailers started quietly dialing back their return policies or charging for return shipping or restocking fees during the holiday season of 2023, but they didn't make a big deal of it so as not to alienate their customers, said Beitelspacher. "Returns are a big cost for online retailers although, arguably, they are part of the price of doing business in the ecommerce space. The problem is that the consumer rarely covers the full cost of returns, so it harms the bottom line," said Neil Saunders, a retail analyst at the research and analytics firm GlobalData. Tighter policies around returns, such as making the consumer pay, helps offset some of the cost but it also deters customers and can harm sales, so there is a balance to be struck, he said. Are shoppers using or abusing Target loophole? Social media is full of videos of moms who brag that they have taken a years' worth of used kid clothes from the Target Cat & Jack brand back to Target for a refund or exchange for new clothes. But some shoppers say it is up to the Target store manager's discretion. Are the shoppers who are getting refunds or exchanges smart consumers or taking advantage of a lenient Target policy? Target customers can return the Cat & Jack items or any Target branded item for up to a year with the receipt or proof of purchase in the Target app, a Target spokesperson confirmed. This guarantee is in place because of the confidence the retailer has in the quality of what it is offering when guests shop Target's owned brands, the spokesperson said. Retailers say good return policies are good business Some retailers don't even want the returned product back. An Amazon spokesperson said customers are allowed to receive refunds without returning some products as a convenience to customers. That is allowed on a very small number of returns and helps keep prices low for customers, the spokesperson said. Some shoppers have shared on social media that Walmart in some cases also allows consumers to return an item and keep it. The retailer would not specifically address that claim when asked, pointing to its return policy, which does not have any details about keeping a returned item. A Walmart spokesperson added that she didn't have anything to add on its return policy, but pointed to the retailer's return policy, which says on most items shoppers have 90 days to return. However, in an online guide for its Marketplace or online site, which includes sales from third-party sellers, Walmart offers tips on how those resellers can implement a "keep it rule," allowing customers to keep the returned item. Love 'em or hate 'em?: What's in store for the future of self checkouts? How retailers are pulling back. Beitelspacher, the marketing professor, said retailers will allow customers to return an item on the theory that "the delight that you might feel might make you more of a lifetime customer." The cost of that item to gain the lifetime customer would be more than the cost of absorbing the cost for you to ship the item back, she said. But Beitelspacher also pointed out that Amazon's lenient return policies, while it may help shoppers have better feelings about Amazon, can hurt the many third-party sellers on the platform, who are actually taking the return hit. The dark side to retail returns There's a big difference between a shopper who takes advantage of a retailer's lenient return policy and criminals making a business of bilking retailers through returns – and consumers who participate. Some shoppers purposely buy an item and "wardrobe" it, or wear it with the tags on and then return it, which is arguably gaming the system, said Eyal Elazar, head of market intelligence at Riskified, a company that helps e-commerce companies detect and prevent bad behavior. But criminal rings also exist to defraud retailers and some consumers are participating in this fraud, he said. Real shoppers are using cyber criminals to handle the return process for them, but with a twist, said Elazar. The criminals scam the retailers using methods such as disappearing ink on return labels, which shows proof that some package was scanned in and on its way back to the retailer. When that package doesn't arrive, the criminal can put pressure on the retailer to still give the refund. The customer gets to keep the item and some of the refund while the criminal also gets a cut, he said. The criminals love this method since they don't have to put out any investment to buy stolen credit cards or stolen inventory and are still earning money from the fraudulent returns, Elazar said. This new return fraud really ramped up after the Covid-19 pandemic when people stopped needing to sign for deliveries and when retailers were trying to figure out ways to make consumers happy with the increase in e-commerce and returns, he said. Betty Lin-Fisher is a consumer reporter for USA TODAY. Reach her at blinfisher@ or follow her on X, Facebook or Instagram @blinfisher and @ on Bluesky. Sign up for our free The Daily Money newsletter, which will include consumer news on Fridays, here.
Sydney Morning Herald
7 days ago
- Business
- Sydney Morning Herald
Younger workers are ditching toxic workplaces. You can too
One week into a new job, Lisa Grouette discovered something missing come Sunday night: the sinking feeling of dread she used to experience before going to work every Monday. Groutte spent 10 years at an insurance agency with a boss whom she alleges screamed at her, slammed his hands on the desk, insulted her appearance and punched things. He falsely accused her of taking money and threatened to withhold an employment recommendation if she quit, she says. Fearing she wouldn't land another job if she left the toxic workplace, she stayed. 'It was this implied, 'you're stuck',' Grouette, 48, recalled. But eventually, she found a way out. When a full-time job opened up at a newspaper where she worked a part-time photography job, she resigned from the insurance agency. The new position paid $400 less per month, but Grouette reduced her expenses to make it work. 'You can't put a price tag on it,' she said. 'It was the best 400 bucks a month I've ever spent, worth every penny. I was a little tight at first, but it didn't matter because I was happy.' Growing intolerance of toxic behaviour As mental health awareness increases, so are conversations about what constitutes unhealthy behaviour and the kinds of treatment people will not – or should not – tolerate for a steady paycheque. 'We're developing language now around things like toxic workplaces,' said Jennifer Tosti-Kharas, a professor of organisational behaviour at Babson College in Massachusetts. Younger generations entering the workforce, including Millennials and members of Generation Z, are less willing to endure bullying behaviour from colleagues and managers, and better at establishing boundaries, she said.
The Age
7 days ago
- Business
- The Age
Younger workers are ditching toxic workplaces. You can too
One week into a new job, Lisa Grouette discovered something missing come Sunday night: the sinking feeling of dread she used to experience before going to work every Monday. Groutte spent 10 years at an insurance agency with a boss whom she alleges screamed at her, slammed his hands on the desk, insulted her appearance and punched things. He falsely accused her of taking money and threatened to withhold an employment recommendation if she quit, she says. Fearing she wouldn't land another job if she left the toxic workplace, she stayed. 'It was this implied, 'you're stuck',' Grouette, 48, recalled. But eventually, she found a way out. When a full-time job opened up at a newspaper where she worked a part-time photography job, she resigned from the insurance agency. The new position paid $400 less per month, but Grouette reduced her expenses to make it work. 'You can't put a price tag on it,' she said. 'It was the best 400 bucks a month I've ever spent, worth every penny. I was a little tight at first, but it didn't matter because I was happy.' Growing intolerance of toxic behaviour As mental health awareness increases, so are conversations about what constitutes unhealthy behaviour and the kinds of treatment people will not – or should not – tolerate for a steady paycheque. 'We're developing language now around things like toxic workplaces,' said Jennifer Tosti-Kharas, a professor of organisational behaviour at Babson College in Massachusetts. Younger generations entering the workforce, including Millennials and members of Generation Z, are less willing to endure bullying behaviour from colleagues and managers, and better at establishing boundaries, she said.
Boston Globe
24-05-2025
- General
- Boston Globe
Workers are saying ‘no' to toxic environments. Here's how to set limits or know it's time to leave.
Related : But eventually, she found a way out. When a full-time job opened up at a newspaper where she worked a part-time photography job, she resigned from the insurance agency. The new position paid $400 less per month, but Grouette reduced her expenses to make it work. Get Love Letters: The Newsletter A weekly dispatch with all the best relationship content and commentary – plus exclusive content for fans of Love Letters, Dinner With Cupid, weddings, therapy talk, and more. Enter Email Sign Up 'You can't put a price tag on it,' she said. 'It was the best 400 bucks a month I've ever spent, worth every penny. I was a little tight at first, but it didn't matter because I was happy.' Advertisement Growing intolerance of toxic behavior As mental health awareness increases, so are conversations about about what constitutes unhealthy behavior and the kinds of treatment people will not — or should not — tolerate for a steady paycheck. 'We're developing language now around things like toxic workplaces,' said Jennifer Tosti-Kharas, a professor of organizational behavior at Babson College in Massachusetts. Younger generations entering the workforce, including millennials and members of Generation Z, are less willing to endure bullying behavior from colleagues and managers, and better at establishing boundaries, she said. Advertisement At the start of her own career, 'if I encountered toxicity in the workplace, I had more of a 'Suck it up' attitude,' said Tosti-Kharas, who identifies as a member of Generation X. 'I don't think we were as vocal about taking care of our mental health as we should have been.' How do you identify a toxic work environment? Conflicts and difficult relationships may be inevitable in any work environment. But there's a difference between an occasional disagreement and persistent abuse. 'What makes something toxic: it's more pervasive, more consistent over time,' Tosti-Kharas said. 'You may have tried some things and it's not getting better. ... It's very deeply entrenched.' AP Illustration / Annie Ng/Associated Press Possible indications of an emotionally harmful workplace include a widespread lack of trust and fear of being shot down if you speak up, she said. Loud screamers aren't the only kind of toxic co-workers and supervisors. There are quieter forms of toxicity, such as passive-aggressive behavior by leaders who use sarcasm, backhanded compliments, indirect criticism and exclusion to control their employees, according to Alana Atchison, a clinical psychologist based in Chicago. 'It is a relationship where you can't communicate clearly or directly, so you have to silence yourself. You can't say truly what you need to say and feel safe,' Atchison said. To spot a potentially toxic environment when applying for a new job, follow your gut instincts and consider warning signs. For example, frequent ads for the same position may reflect high turnover resulting from a negative environment. You can also search employee reviews online. 'I'm reading Glassdoor reviews like crazy to see what the environment is like, what the culture is like, on anyplace I'm applying to, because I can't lose my hair again over a job,' said Grouette, who recently was laid off after several successful years at the newspaper. Advertisement What might explain toxic behavior? When on the receiving end of toxicity, consider whether the offending behavior says more about the person perpetuating it than the recipient. 'It's almost like a smokescreen to hide their deficits,' Atchison said. 'If someone feels insecure about their role or fears being overshadowed, they might resort to undermining others, gossiping or sabotaging projects to regain a sense of control or safety.' Since the COVID-19 pandemic, Atchison's clients have increasingly complained about toxic work environments. She attributes that in part to the social isolation that accompanied lockdowns and restrictions on public activities. 'Socializing is a skill set, and that skill set has declined,' she said. Voice your concerns If you find yourself in a toxic work situation, talking about it with a trusted friend or professional therapist can help you process what is happening and develop a plan to deal with it, instead of letting it fester in your mind. Stephanie Strausser, 42, a video production manager, said she sought support from friends and family members when she worked under an extreme micromanager who made her feel unsafe and whose decisions she considered unethical. 'Don't hide it or keep it in. Talk to people. Even if you're talking to ChatGPT,' Strausser advises those who find themselves in similar circumstances. 'Don't internalize it. And don't take someone's perception as fact.' Related : Amanda Szmuc, a Philadelphia lawyer who considers some of her past work environments to have been toxic, recommends documenting your concerns in case it becomes necessary to escalate them. Writing down the details of troubling interactions as they happen and keeping copies of inappropriate messages or approved meeting recordings may come in handy if the human resources department gets involved, for example. Advertisement Maintaining a record may also help you avoid gaslighting and reinforce your determination to protect yourself. Set boundaries If leaving a toxic environment isn't financially possible or you want to try to make your circumstances more bearable, think about exploring ways to limit your interaction with the difficult party may be an option. Possibilities may include negotiating a role that puts distance between you and the toxic person, such as working different shifts or on different projects, Tosti-Kharas said. You can also set deadlines for yourself to keep things from deteriorating, according to Szmuc. Examples: 'I'm going to give this two weeks. Is there any improvement?' she said. 'Is there a way internally where I can maybe change my circumstances or get someone else's opinion?' Find a way out Ideally, an employee who feels mistreated could appeal to someone from human resources or the offending employee's manager with evidence to show a pattern of conduct violations and disciplinary action would be taken, Tosti-Kharas said. But that doesn't always happen, leaving the reporting party in close proximity with the person they reported. 'In the real world, you may realize they are unlikely to go anywhere, and it's you who has to go somewhere,' Tosti-Kharas said. In extreme situations, it's best to look for another job, she said. Related : If an inspector found radon in your house, 'you wouldn't say, 'Let me try to work with the radon,' or 'How can I keep it there but maybe lessen the effects?'' she said. 'You would get the toxin out of the situation or you would get yourself out of the situation.' Advertisement Most people can't afford to leave their jobs without another one lined up. Carving out time to apply for different jobs is difficult when you feel under assault but also is empowering and may lead to a better situation. 'If somebody gives you an impression that you're not able to leave this job, that's just not true,' Grouette said. 'Those sorts of people don't have the reach or respect that they claim to have, because if they're volatile to you, they're volatile to others.'
