eCommerce is known for its convenience, but there’s a surprising aspect to it: returns are a part of the package. They make up 20-30% of online orders, quite a bit higher than the 9% seen in physical stores.
So, If you’re gearing up to start selling online, selecting the right platform and getting a grip on their return policies is a critical piece of the puzzle.
In this blog, we’re diving deep into the return policies of two eCommerce giants, Walmart and Amazon to help you figure out which one is the better fit for sellers like you.
Let’s get started;
Amazon Return Policy: Key Points
Amazon.com is on a mission to be the world’s most customer-focused company, and they’ve established some transparent and fair rules for their marketplace. If you want to sell on Amazon, knowing and following their limitations regarding returns is essential.
Here are some critical points of Amazon return policy:
General Return Period
Amazon and third-party sellers typically allow returns within a 30-day window. However, there are exceptions for prepaid game cards, customized orders, and groceries.
Laptops, desktops, and Kindles cannot be returned after 30 days.
Holiday Return Extension
Orders shipped during October 11 and December 31, 2022, were eligible for free returns for Amazon Prime and non-Prime buyers until January 31, 2023.
Return Policies for Amazon Prime
Products eligible for Amazon Prime follow the same return policy as other Amazon-fulfilled purchases.
Variations for Third-Party Sellers
Third-party sellers may have their own refund policies tailored to their operations and expenses. Amazon respects these policies, and buyers must adhere to the seller’s specific return guidelines.
Handling Merchant-Fulfilled Returns
Returns for merchant-fulfilled orders go directly to the seller. Sellers should provide a US return address or prepaid return label. If not, customers can file A-to-Z claims, impacting seller accounts.
A-to-Z Guarantee Protection
Amazon offers the A-to-Z Guarantee to protect buyers of merchant-fulfilled items, ensuring a secure shopping experience even without ordering from an FBA seller.
Seller Responsibilities
Sellers are expected to respond to return requests within 24 hours and provide cash refunds within two business days for merchant-fulfilled orders. Failure to do so may lead to automatic refunds by Amazon, with charges to the seller’s account.
Returnless Refunds and Eligibility
Amazon sellers can opt for returnless refunds to avoid return fees. However, they can specify which items are eligible to prevent abuse.
Prime Wardrobe and Fashion Returns
Amazon’s Prime Wardrobe lets buyers try six fashion items at home for a week, choosing what to keep or return. Amazon Fashion returns may only be accepted if things are sellable.
Amazon’s return policy ensures customer satisfaction while providing clear guidelines for buyers and sellers, with specific measures for various products and sellers on the platform.
Consider collaborating with an experienced Amazon account manager. They can help make your return procedures align with the platform’s rules, which lowers the possibilities of your account getting suspended or facing penalties due to policy violations.
Walmart Return Policy: The Retail Giant’s Approach
Here’s a breakdown of critical points in their policy:
Return and Exchange Period
Walmart generally allows customers to return or exchange online and in-store purchases within a generous 90-day window from the date of receipt.
Varied Timeframes
Depending on their category, some products fall under different return timeframes, such as 14, 30, or 60 days. The type of product determines the specific timeframe.
Proof of Purchase
To process refunds or exchanges, customers are typically required to provide either the receipt or the order number from Walmart.com.
Holiday Return Extension
In 2022, Walmart extended its return policy for items purchased between October 1 and December 31, allowing returns until January 31, 2023. Orders made before October 1 followed the standard return policy.
Minimum Return Period for Third-Party Sellers
Walmart sets minimum return periods for third-party sellers to ensure a consistent shopping experience. For electronics and luxury items, sellers must allow 14 days for returns, while other products require a 30-day return window.
Return Location
Customers can send items back by mail or return them to their nearest Walmart store. However, certain third-party hazardous products cannot be returned in-store.
Special Conditions for Large Appliances
Items like refrigerators and washers must be returned with their original packaging in immaculate condition. The return window for these appliances is also 30 days, similar to other items.
Furniture Assembly
Furniture that requires assembly must be disassembled and wrapped with a return shipping label before it can be returned to Walmart or FedEx.
Limited Exchange Items
Some items, like airbeds, crutches, walkers, and unlocked wireless phones, can only be exchanged for similar products.
Walmart’s Right to Limit Returns
Walmart retains the right to limit or deny consumer returns to prevent misuse or abuse of its return policy.
Non-Returnable Items
Certain items, such as prescription medications, medical equipment, guns, and home testing kits, cannot be returned, refunded, or replaced, regardless of the receipt.
Account Closure and Refusal
Walmart may close marketplace accounts or refuse orders or refunds in cases of policy violations, misuse, or fraudulent activity.
Walmart Marketplace Promise
Customers buying from third-party sellers on Walmart Marketplace benefit from the Marketplace Promise, ensuring merchants address issues within 48 hours. If not resolved, Walmart steps in to make a final decision.
Walmart’s return policy balances customer satisfaction with fair guidelines for customers and sellers while providing options and extensions during exceptional circumstances.
Which One is More Convenient for eCommerce Business?
Choosing the right eCommerce platform to sell your products depends on various factors, including your product type, target audience, and business strategy. While return policy matters, it should not be the sole determining factor.
Here are some suggestions based on the return policies of Walmart and Amazon:
Choose Walmart if:
- You have products with longer return windows, as Walmart offers a 90-day return period for many items.
- You prefer more control over your return policy, as Walmart allows you to set your return windows and restocking fees.
- Your products are large appliances or furniture, as Walmart has specific conditions for their return.
- You want to leverage Walmart’s in-store return option for added convenience to customers.
Choose Amazon if:
- You have products that align with a 30-day return window, which is the standard for most items on Amazon.
- You’re comfortable with Amazon’s customer-centric approach and trust their A-to-Z Guarantee for added buyer protection.
- You prefer a platform with a vast customer base and extensive reach.
- You’re open to fulfilling orders through Amazon’s FBA program, which can simplify the returns process for customers.
Ultimately, the choice between Walmart and Amazon should consider not only return policies but also factors like product category, shipping preferences, fees, and the specific needs of your business. Consider selling on both platforms to reach a broader audience and diversify your eCommerce strategy.
Some Challenges for Sellers That Come with Returns
Here are some common problems faced by eCommerce businesses:
- Return Fraud: Dishonest buyers exploiting return policies for personal gain.
- Complexity: Figuring out the rules of different platforms can be confusing.
- Customer Expectations: Meeting and exceeding customer expectations for hassle-free returns.
- Operational Efficiency: Streamlining the return process to reduce operating costs.
- Policy Changes: Adapting to frequent changes in return policies by eCommerce giants.
How does eMarspro Assist in Return Management?
Working with eMarspro’s eCommerce consultants for return management, especially when dealing with the return policies of different platforms, can provide many benefits.
These experts deeply understand various eCommerce platforms, including Amazon, Walmart, and Shopify. They can help you to manage returns and refunds, and align with platform rules and customer expectations, such as setting appropriate return windows, restocking fees, and returnless refund options.
Conclusion
When deciding between Walmart and Amazon for your eCommerce business, it’s crucial to consider how their return policies can impact your operations and customers.
Being flexible, communicating clearly, and providing excellent customer service is vital to understanding and working with the specifics of each platform’s return rules.
As a part of providing a smooth shopping experience, Walmart and Amazon are constantly working to make their return policies better, so staying up-to-date is essential for sellers to succeed in the eCommerce world.
