How Retailers Like T.J. Maxx And Home Depot Quietly Target 'Problem' Returners

LTC Eugene Chu Yeah there is No Profit in Returns!

LTC Eugene Chu Most of the returns that come back cost up to 40% of the original retail price to put that item back on the shelf," said Robert Overstreet, Iowa State assistant professor of supply chain management. "There's no guarantee they can sell it for what they originally asked for it, so they're losing money on both ends."

I saw a great deal of abuse when refund policies were relaxed. Refunds without receipts led to people picking items off the shelf, going up front and trying to get a refund. If you refused it they wrote to corporate telling their story, got their refund and a gift card on top of it for their "inconvenience". It doesn't take too long for associates to figure out that refusal is more costly to the business than simply getting ripped off