Walmart and Amazon Revolutionize Returns: Keep the Item, Get a Refund

Major U.S. retailers like Amazon and Walmart are transforming their return policies, allowing customers to receive full refunds without returning low-cost items. This “returnless refund” trend, increasingly adopted in 2025, prioritizes customer convenience and cost savings for businesses.

For items under $75, particularly inexpensive or hard-to-resell products, retailers may issue refunds and let customers keep the goods. Amazon began expanding this policy in August 2024, applying it to third-party sellers and a new section of its website featuring low-cost items shipped from China. Walmart followed, giving its marketplace sellers flexibility to offer returnless refunds based on price or product type. Other retailers, including Target, Chewy, Shein, and Temu, are also embracing this approach, with Chewy encouraging customers to donate unwanted pet products to shelters.

The strategy is driven by economics: processing returns for low-value items—like a $20 T-shirt—can cost retailers more in shipping, labor, and restocking than the item’s worth. A 2021 CBS News report noted returns cost retailers nearly 60% of an item’s price. By issuing refunds without requiring returns, companies save money and boost customer loyalty, as hassle-free experiences encourage repeat purchases.

However, returnless refunds aren’t universal. Retailers use algorithms to assess eligibility based on product cost, shipping fees, resale value, or health regulations (e.g., cosmetics or perishables are often excluded). Policies vary by seller, and retailers keep details discreet to prevent abuse. Customers typically learn of the option during the return process, not through public announcements.

This shift benefits consumers by eliminating the hassle of repackaging and shipping returns, but it raises concerns about waste. Unwanted items may end up donated, stored, or discarded, potentially contributing to environmental issues if not handled responsibly. Still, the policy reflects a broader e-commerce trend toward streamlining operations while keeping customers satisfied.

As returnless refunds gain traction, shoppers can expect more flexibility with low-cost purchases, but should remain mindful of the environmental impact and retailer discretion in applying these policies.

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