Some retail chains are considering letting people keep the products they want to return, while still giving them their refunds, CNN Business reports.
The issue is that some of the biggest chains have too much inventory, with Target, Walmart, Gap and American Eagle Outfitters among those who’ve reported the problem in recent weeks in their earnings calls. So the last thing they need is more products coming in as returns.
There are also issues with some of the things they usually do with returns, such as sending them to foreign liquidators for sale overseas, which isn’t really feasible right now because of the backed-up ports and shipping container shortages.
Steve Rop, the chief operating officer of goTRG, a firm that processes returned items for companies like Wal-Mart, Amazon, and Lowe’s, told CNN companies really are looking at the idea, but wouldn’t say if any are already doing it. However, the problem with granting refunds while letting customers keep the products is the risk of fraud.
Keith Daniels, a partner with Carl Marks Advisors, told CNN, “[R]etailers need to track and ensure… 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.”
