Should All Retailers Offer Instant Refunds?

Reshop is changing things up when it comes to the refund process by offering instant refunds, bypassing the traditional waiting period that consumers have come to expect.

Launching this new program with major partners like Alo Yoga, Steve Madden, and Orveon’s cosmetic brands, Reshop will give consumers access to their return funds immediately after completing their returns instead of receiving store credit.

“We see an opportunity to disrupt a traditional process to deliver unique value to both merchants and consumers. With Reshop, customers can receive instant refunds — offering them greater flexibility, control, and confidence to shop again right away. For merchants, Reshop can help transform what has historically been a loss into an opportunity to recapture customers and drive additional revenue.”

Katie Pridham, chief commercial officer at Reshop, via PR Newswire

Katie Pridham, Reshop’s chief commercial officer, summarizes the new refund platform’s dual benefits: instant refunds enhance consumer satisfaction and help merchants recover lost revenue through repeat sales. According to the company’s research, 90% of shoppers will favor merchants that provide instant refunds, and two-thirds of Americans think “returns are the absolute worst part of shopping.”

Reshop also partnered with Narvar in order to gain access to over 1,400 brands and make it easier to add to current return processes. Reshop is set to expand its network with backing from investors such as Afterpay co-founders Anthony Eisen and Nick Molnar and venture firms like Matrix Partners and Sound Ventures.

According to the official Reshop website, the process requires first using the Reshop app to choose Reshop as your refund option with a partner retailer. After initiating your return, you’ll receive your refund either directly into your bank account within one business day or immediately on a Reshop virtual card. You can then spend your refund anywhere Visa debit cards are accepted. The Reshop app also lets you track your refunds, view tailored shopping recommendations, and monitor your refund status in one place.

Over the next few months, the platform plans to introduce additional men’s and women’s fashion labels to its expanding roster of partner merchants. Although the company is currently collaborating with direct-to-consumer brands, its objective is to speed up and streamline the refund process across the entire retail sector. Reshop is also “focusing on partnering with innovative merchants to enhance the customer experience,” per WWD.

Pridham told the outlet, “We’re seeing a cultural shift where consumers want more control and instant access to their money. Eighty-six percent of consumers feel it’s ‘unacceptable’ for a refund to take more than a week. With Reshop, we’re meeting the demands of today’s shoppers who expect their refunds to move as instantly as they do. This in turn drives confidence, loyalty and repeat purchases.”

Other companies are also trying to improve the returns process for consumers. Sway, a startup focused on doorstep returns, recently raised $19.5 million as retailers seek faster and more convenient return options. Last holiday season, Walmart introduced a home return pickup service for Walmart+ members, allowing them to return items without needing a box or label. Similarly, DoorDash began offering doorstep returns for UPS, FedEx, and USPS packages, and Optoro added home pickups to its Express Returns program.