In response to evolving market dynamics, Walmart has revised its return shipping fees for orders fulfilled by third-party sellers, as detailed in the retailer’s March “Seller Digest.” While specific rates are not disclosed, Walmart has confirmed the adjustments, effective March 20, are modest and mark the first change in two years.
Balancing Returns and Costs
The retail giant’s decision comes at a time when companies are re-evaluating their returns strategies to align with consumer expectations while also controlling the costs associated with reverse logistics. Some retailers are instituting fees or modifying their return policies to mitigate these costs.
Online Returns on the Rise
The issue is particularly critical for online retailers. Projections by the National Retail Federation and Appriss Retail indicate that online returns could represent 17.6% of total online sales in 2023, amounting to $247 billion in merchandise. This figure exceeds the return rate for in-store purchases, which is expected to be 13.3% of total sales.
Walmart Marketplace Innovations
Walmart Marketplace sellers have the option to implement a “Keep It Rule,” which allows customers to retain their items while still receiving a full refund, thus avoiding return shipping costs. This approach is often more economical for sellers, especially when the cost of return shipping exceeds the value of the item.
The “Keep It” Trend
Retailers, particularly those dealing with low-cost items, find “keep it” policies financially advantageous. The cost of return shipping and processing can often outweigh the value of the product. A 2023 report by goTRG revealed that 59% of over 500 surveyed U.S. retailers have adopted such policies for returns that are not cost-effective to process.
