In a surprising shift, more and more online shoppers are discovering they can get a refund without returning the product—especially from retail giants like Amazon and Walmart. What seems like a generous customer service gesture is, in fact, a carefully calculated business strategy that’s gaining momentum across the industry.
This trend, known as “refunds without returns,” is quietly becoming the norm for certain types of purchases. It typically applies to low-cost items that are difficult to resell or expensive to ship back. Customers might not even know it’s an option until they initiate a return—and instead of receiving a return label, they get a message saying, “Keep the item, your refund has been issued.”
Why Retailers Would Rather Let You Keep It
Processing returns is not cheap. For each returned item, retailers must cover shipping, inspect the product’s condition, and decide whether it can be resold. When the item is worth $20 or less, that entire process often costs more than the item itself.
From a business standpoint, it’s more efficient to skip the return entirely. Think about a $15 t-shirt ordered online. Is it worth shipping it back, inspecting it, and tossing it if it’s unsellable? Not really. That’s why companies like Amazon and Walmart have started letting customers keep the product while still issuing a full refund.
More Than Logistics: It’s About Customer Trust
This policy isn’t just about saving money—it’s also a powerful way to build customer trust. If a shopper has a complaint and the issue is resolved without hassle, they’re far more likely to return. For companies, this kind of goodwill is often worth more than a refund.
Amazon has been using this method since August 2024, allowing sellers to apply it to products under $75. Walmart is doing the same, especially for marketplace items. Other retailers—including Target, Chewy, Temu, Shein, and AliExpress—have adopted the approach as well, especially for overseas shipments.
However, it’s not a right, and customers can’t request it. It’s offered selectively, and if you abuse the return system, platforms may flag your account. In some cases, retailers like Chewy even encourage customers to donate unwanted products to local shelters, turning a business decision into a community-friendly act.
At first glance, refunds without returns may seem like a generous freebie. But behind the scenes, they reflect a smart, data-driven strategy that benefits both the customer and the company. Less hassle for shoppers, lower costs for retailers—everyone wins.