January 13, 2015
While Amazon may be best known for its fast delivery and massive product selection, the Seattle-based company has also devoted a great deal of effort to offering one of the best refund and return policies possible. In fact, Amazon currently leads all e-commerce retailers when it comes to cash back for items returned. Where some companies take days, even weeks to reimburse customers for returns, Amazon takes an average of 1.3 days, according to a new study by StellaService Inc.
Amazon’s decision to quickly return money is part of a strategy in which these customers will ideally make another Amazon purchase. “Instead of tying up cash and preventing customers from buying things, Amazon’s aim is to get people spending again,” Bloomberg reports.
Last year, Amazon launched its instant refund program in which the company would issue immediate credit and up to 30 days to return a product. According to Bloomberg, the company’s instant return program was “the fastest refund-processing time out of 40 companies measured by StellaService.”
Amazon’s approach to the refund process mirrors that of its expedited delivery service. “Our goal is to make sure customers are satisfied with their experience with Amazon whether they are shopping or returning an item,” explains Amazon spokeswomen Kelly Cheeseman.
Faster refunds could prove valuable to Amazon as it continues to compete against traditional brick and mortar stores. As of now, physical retail stores have an advantage over Amazon and any other e-retailer because of the existing locations that customers can visit to return items in person. However, if online returns continue to improve, they could become more appealing to customers.