Why Amazon wins and Walmart loses (in Returns)

A significant component of delightful shopping experience is assurance. Assurance that if my purchased product fails to meet my expectations after it leaves the "store", I can easily return it, and get my money back - without jumping through hoops.

And while return policies for most businesses are theoretically fairly generous, like anything else in life, it comes down to execution. In this article, I will offer comparison of the user experience between two competing eCommerce companies - Walmart and Amazon.

Generally, the return process can be broken down into the following steps:

1. Initiate return

2. Choose return option

3. Return (or pickup)

1. Initiate Return

Amazon does a stellar job of putting Returns and Orders as a header level item, while Walmart buries it as a third level item Account > Purchase History > Returns. Not easy to find to say the least.

Walmart Header

Amazon Header

2. Choose return option

Walmart offers 2 return options:

1. Return in Walmart store

2. Mail (USPS or Fedex)

In comparison, Amazon offers a variety of return options:

1. Drop off at Whole Foods, UPS, Kohls, Amazon locker

2. Pickup

Not only does Amazon offer a much greater number of choices, thus increasing the chances of consumers finding a convenient drop-off location, it also offers pickup. Its also worth calling attention to the minor yet highly impactful detail - that Walmart returns require you to print labels and prepare a shipment-ready package, while Amazon lets you walk into a nearby store with your item and the barcode on your phone, and does all the work of finding the right box and printing & sticking the label for you. For most users who do not own a printer at home - not needing to print a label is a life saver. All in all, Amazon wins hands down on the variety of return options

3. Return (or pickup)

This is the part of the process that inspired me to write this article. For the sake of comparison, we choose the drop off option, since Walmart doesn't offer pickups. So here goes:

Steps to returning Amazon items (at Whole Foods / Kohls):

1. Walk in, no box, no label needed.

2. Scan barcode on phone

3. Drop off

Steps to returning Walmart

1. Walk in, no box, no label needed.

2. Scan barcode on phone

3. Hand off item

(Time consuming interaction with store assistant follow)

4. Question 1: What item are you returning?

5. Question 2: Your total is $x. Does that sound right? (It didn't sound right cause it was stated without including taxes)

6. Watch store assistant try to peel off previous label for another 4 minutes before finally giving up and sticking the new label on top

Oh, and added side win for Amazon - if you choose to drop off at Whole Foods, you will saunter all the way to the back of the store, and likely be enticed to pickup something you didn't know you needed on your way back. If you choose to drop off at Kohl's, you will likely receive a $5 or so coupon to spend in the store within the next 2-3 days. And guess what, you will likely discover something you didn't know you needed as you make your way out the store. In contrast, Walmart accepts returns at Customer service, right by the entrance. And after the friction-full interaction with the associate helping with the return - you are not looking for anymore, so you sprint back to your car and on with your life.

All in all, while returning items purchased at Walmart is feasible, the experience fell way short of expectations set by the gold standard of returns - Amazon. It doesn't simply suffice to offer returns, its how frictionless, convenient and delightful the experience is.