What Does Walmart Do With Returns? (Not What You Think)

Hi there! Have you ever returned an item to Walmart and wondered what happens to it next? If you‘re like most shoppers, you probably assume your return gets thrown away or tucked into some far corner of the store. But the reality is quite different.

In fact, Walmart has a whole complex system for processing returns and recapturing value from them. I‘ll give you the inside scoop on what really happens after you return an item to Walmart. I bet it‘s not what you think!

The Long Journey of a Walmart Return

Before we dig into the details, let‘s quickly walk through what typically happens from the moment you hand over a return:

1. You bring the item to Walmart‘s customer service desk and provide your receipt.

2. Walmart employees inspect the return carefully to validate it.

3. Once approved, the return gets sorted based on its condition.

4. If suitable for resale, it goes back on Walmart‘s sales floor.

5. If not, it may get sold to a liquidator and resold elsewhere.

6. Unsellable returns get donated, recycled or properly disposed of.

7. You receive a refund in the original form of payment shortly after returning.

That‘s the basic life cycle of a return at Walmart. But there‘s a lot more depth behind the scenes, so keep reading to learn more!

Walmart Gets a Staggering Number of Returns

To understand how returns get handled, you first need to grasp the sheer scale of returns Walmart processes every day. The numbers are pretty mind-blowing:

• 10% – Walmart‘s overall return rate, meaning 10% of items sold get returned on average.

• $20 billion – Estimated annual value of all returns at Walmart US stores.

• 1.5 million – Approximate number of customer returns processed daily.

• 3 million – Total tonnage of returned goods Walmart handled globally in 2021.

As one of the largest retailers in the world, Walmart has returns down to a science. Their systems must be robust and efficient to handle these massive volumes.

The Rules: Walmart‘s Return Policies

Before a return can be processed, it first has to meet Walmart‘s return policy criteria. Walmart instructs employees to inspect each return for:

• Receipt – Having your original receipt speeds up the return process, though Walmart can look up purchases through an ID.

• Timing – Most unopened items can be returned within 90 days. After 90 days, only store credit may be offered.

• Condition – Items must be in original condition with no signs of use or damage.

• Packaging – Products should come with original hang tags, UPC codes, packaging and accessories.

• Safety – Recalled, expired or prohibited items cannot be returned and resold.

If issues come up during inspection, Walmart may deny the return request. Assuming it passes the checklist, the real journey begins!

Three Possible Routes for Walmart Returns

Once Walmart accepts a return, it goes down one of three paths:

Back to the Sales Floor

The top priority is getting returns back on shelves at Walmart stores. Unopened items in perfect condition can be resold at full price again. For used or open box returns, Walmart may mark down 10-30% before reselling in "Special Buy" sections.

However, Walmart cannot resell certain used goods like clothing, cosmetics, baby items, and groceries. These categories must be recycled, donated or disposed of.

Sold to Liquidators

If an item can‘t be resold in Walmart stores, the next option is selling it to a liquidator. Third-party liquidators buy returned merchandise in bulk and resell at heavily discounted prices.

Major liquidators that work with Walmart include Direct Liquidation, B-Stock, Amazon Liquidation, and many more. You can often find them selling Walmart returns online.

Liquidating through resellers lets Walmart quickly recoup some money on returns without investing more resources in them.

Disposal or Donation

Finally, Walmart disposes of returns that are unfit to be resold or recycled. Food waste gets donated to shelters and charities where suitable. Recycling programs also help minimize disposal volumes.

As you can see, Walmart has it down to a science to maximize the recoverable value from returned items.

Getting Your Money Back: The Refund Process

Of course, the final step of the Walmart return process is issuing your refund. Here‘s a quick rundown of how their refund system works:

• Refunds get credited on the original form of payment. So returns paid by credit card go back to that same card.

• Most refunds appear within 5 days, but may take up to 10 business days.

• You‘ll receive a printed or emailed return receipt with your refund confirmation details.

• Having ID handy speeds things up if needed to look up the original purchase.

• Returns without a receipt may only get store credit after 90 days.

As long as you adhere to the return policies, getting your money back from Walmart is a smooth process.

What About Special Cases Like Opened or Electronic Returns?

Walmart has some unique processes when it comes to open box and electronic returns compared to regular unopened items:

Opened Returns

Walmart will take back most opened products, with some exceptions. When inspecting an open return, they look for:

• The item itself being unused and undamaged.
• Having all original accessories and parts.
• Original packaging if possible.

Without original packaging, a restocking fee or further markdown may apply before reselling an open return. Certain opened personal care products cannot be resold at all.

Electronic Returns

Electronics come with extra validation and handling:

• Serial numbers are checked to match the returned item.
• All parts, manuals and accessories are audited.
• Functions may be tested before reselling.
• Data is wiped from products with storage.
• A 15% restocking fee often applies to cover processing costs.

The extra diligence is needed to vet electronics before returning them to stock.

Recapturing Value From Returns

Between reselling, liquidating, donating and recycling returns, Walmart does an impressive job of recovering value from unwanted items:

• Reselling returns earned Walmart $3 billion in revenue in 2019.

• Liquidators help Walmart quickly unload less-desirable returns in bulk.

• Donations provided the equivalent of 608 million meals in 2021 with Walmart‘s food waste reduction programs.

• Recycling helped Walmart achieve an 87% landfill diversion rate for returns and unsold items.

While not a perfect process, Walmart‘s return programs aim to give every item a second life when possible.

The Customer‘s Experience of Returning to Walmart

We‘ve covered all the operational details of Walmart‘s returns process. But how does the experience feel for us as the customers?

Overall, Walmart offers a streamlined return experience:

• In-store returns just require heading to the service desk, commonly located near the front entrance.

• Starting a return online for in-store drop-off saves time by pre-processing the request.

• The items can often be returned without a receipt by looking up past purchases through an ID.

• Refunds are generally issued quickly within a week or less.

• Return policies are clearly posted on Walmart‘s website if you need more details.

However, a few common pain points can crop up:

• Long returns lines are frustrating during busy periods. Staffing levels may need improvement.

• Proof of purchase and ID verification steps, while important, do slow down returns.

• Restocking fees on some items, especially electronics, may annoy customers.

• Third-party items ordered on Walmart.com have varying seller return policies.

While not perfect, Walmart offers a solid no-hassle returns process compared to many retailers. And now you can better appreciate everything that happens behind the scenes!

Walmart‘s Returns Are a Double-Edged Sword

We‘ve focused on how Walmart handles returns, but these programs also impact the company‘s bottom line both positively and negatively.

On one hand, lenient return policies keep customers happy and protect Walmart‘s brand reputation. Research shows customers who have a good returns experience spend more money overall.

But on the other hand, heavy return volumes are quite costly for Walmart. Some analysts estimate Walmart loses $2 billion annually from expenses related to processing, transporting, and reselling returns. Retailers refer to this as the "cost of returns."

And of course, returned merchandise usually represents lost sales, unless Walmart can resell the item again. With return rates around 10-11%, returns result in sizable revenue loss for the retail giant.

However, Walmart seems to view these expenses as an inevitable cost of doing business in today‘s retail climate. The key is focusing on return optimization programs to recover maximum value from each returned item.

What This Means For Us as Customers

As customers, this overview gives us an appreciation for what happens after we return an item to Walmart. Some key takeaways:

• Most returns get resold – Unless defective or hazardous, your return likely goes back on Walmart‘s shelves at full or reduced price.

• Don‘t feel guilty returning items – Walmart accounts for returns in its business model and handles them efficiently.

• Follow return policies – Complete original packaging prevents issues that lead to returns getting disposed of.

• Consider open box discounts – Purchasing Walmart‘s open box discounts supports their return process.

• Know return deadlines – Pay attention to shorter return windows for electronics and other categories.

• Double check restrictions – Some items like assembled furniture have special return requirements.

Understanding Walmart‘s return journey better informs us as shoppers. Next time you return something, you can feel assured it will likely go on to a new home.

The Takeaway: Returns Are a Hidden Journey at Walmart

When we return an unwanted item to Walmart, it‘s easy to assume it gets thrown away or relegated to some mysterious back room. In reality, each return kicks off a whole unseen process to efficiently inspect, sort, and route the product to its next destination.

Through strategic resale, partner liquidations, donations and recycling programs, Walmart gives returned merchandise a second life more often than not. The scale of these operations is mind-blowing when you consider the retailer handles around 1.5 million returns every single day!

Of course, the system isn‘t perfect. Some waste still ends up in landfills. And returns do represent major costs and lost revenues for Walmart annually. But keeping loyal customers happy with easy returns is also a valuable investment.

The next time you start a return at Walmart, I hope you‘ll better understand the complete journey that item will take long after you leave the store. So you can rest assured it will likely end up back on a shelf soon at Walmart or some other lucky store!