Returnless Refunds 101: Everything Store Owners Need to Know


By: Shopify

Returns are a constant source of stress for retailers: about 8%–9% of brick-and-mortar purchases and 20%–30% of ecommerce purchases are returned.

These returns result in added costs (think shipping, processing, and restocking processes). Even worse: sometimes the returned merchandise can’t be resold because it’s broken or single-use only.

It’s an expensive practice—according to UPS data, the cost of processing returns can often be between 20%–65% (or more) of the cost of the goods sold.

All of this contributes to why returnless refunds are gaining traction. Here’s what you need to know about them.

What are returnless refunds?

A returnless refund is a refund that’s granted to a customer without requiring them to return the merchandise.

Amazon first introduced the concept in 2017 to reduce costs and friction associated with returns. Now, when a customer requests a return, Amazon sellers have a choice to tell the customer to keep the product.

In the intervening years, returnless refunds have increased in popularity as store owners continue to look for ways to cut down on the costs associated with returns and to boost customer satisfaction.


Read the full feature HERE.