REI bars some members from returns or exchanges
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REI is taking a more rugged approach to its return policy.
What it did: The outdoor retailer — with its 10 Colorado locations, including its flagship store in Denver — touts a 100% satisfaction guarantee policy on purchases and allows returns within 365 days for its co-op members.
- But REI recently notified some members via email that they are no longer allowed to make returns or exchanges because they abused the policy, 9News reports.
By the numbers: The company said the notice went to "less than 0.02% of its 24 million-plus" members, which is roughly 4,800 people.
What they're saying: "We identified a very small subset of members … who demonstrated a clear abuse of our policy," Katie Barosky, senior manager of store communications, told the TV station. "While they will still be welcome to shop with us, they will no longer be welcome to make returns or exchanges."
The intrigue: The company will not say what threshold it is using to make its determination when customers are abusing the policy.
- But in a statement to ABC News, an REI spokesperson said the targeted members had an average return rate of 79% and returned $2,400 in merchandise, $1,400 of which had been used first.
The big picture: Other retailers, including Target and Amazon, are also cracking down. Target said it has the right to refuse returns or exchanges if fraud is suspected. Amazon put a processing fee on sellers with frequently returned items.
Yes, but: Kyle James, a retail expert who runs the website Rather-Be-Shopping, told 9News REI should have warned the affected members beforehand.
- "It's hard for consumers, because when people 'take advantage of some of these policies,' it ends up hurting everybody in the long run," he said.