A refund issued without requiring the buyer to send the purchased item back to the seller is termed a returnless refund. In this scenario, the buyer receives reimbursement for the purchase price, while retaining possession of the product. For instance, a customer might receive a full refund on a damaged household item without needing to package and ship the broken item back to the vendor.
The practice offers several advantages. It reduces logistical costs associated with returns, such as shipping and processing. It also mitigates potential losses from handling returned goods that are unsellable due to damage or hygiene concerns. Historically, this practice emerged as a cost-saving measure for low-value items where the expense of processing a return outweighed the cost of simply refunding the customer. This also enhances customer satisfaction by providing a convenient resolution to issues.
