5 reasons why Amazon's "just keep it" policy sucks
It's cheaper for Amazon and easier to for customers. But there's a hidden dark side.
Did you ever try to return something to Amazon only to be told to "just keep it"?
It's nice when it happens. You get the product without paying and the refund without shipping.Â
Whee!Â
This policy makes sense for Amazon and other companies. The cost of returning an item could be more than the cost of just letting the customer keep it.Â
"Processing" a return can cost a retailer up to $20. Walmart apparently factors in whether they can or cannot resell the unwanted item, the customer's purchase history and other factors. The decision over whether to allow the customer to keep an item or return it is so complex that companies are reportedly trying to automate it with artificial intelligence.Â
The practice has become more common during the pandemic, according to a piece published this morning in The Wall Street Journal. Online purchases that have to be mailed are way, way up. Returns are up an incredible 70% over 2019. And so are the "just keep it" allowances.Â
Amazon started it. Walmart, Target and other retailers have followed suit.Â
The benefits of this practice are plain to see — happy customers and a small break for the environment because a package isn't shipped.Â
But there are downsides less visible. Here are the 5 reasons why Amazon's "just keep it" policy sucks:
It takes away Amazon's incentive to crack down on shoddy goods
It takes away customers’ incentive to purchase carefully
It creates yet another expectation by the public that can only be met by giant companies like Amazon, further squeezing mom-and-pop shops
It creates an incentive for scammers to game the system and try to get free stuff
It feeds into an ecosystem of shady incentives that degrade the quality of online commerce. (Another example is rebates in exchange for product reviews.)
While online retailers' police of "just keep it" benefits the retailers and their customers, it's a problem for everyone else.Â