Customer returns are sunk costs.

a revenue engine.
Returns as a climate and commerce strategy
New revenue model
Challenger Strategy
Walmart digital recycling program graphic showing refurbished electronics with a phone displaying the Certified Refurbished shop page and device components.

The rule they were rewriting

Returns have traditionally been a loss, creating costs for retailers and waste for the planet. The status quo was landfill or liquidation, with minimal recovery and zero loyalty upside.

The rule we rewrote together

We transformed Walmart’s returns into a win for customers, the business, and the planet. By creating a scalable refurbishing program for premium electronics, we made sustainability profitable and accessible:

Laptop with a Walmart gift card on top.

Online trade-ins, in-store rewards:

Through a deal with PayPal, we enabled customers to trade in used electronics online, with instant payments. This offered unparalleled convenience, while Walmart gift cards could still be distributed in-store, driving foot traffic.

Refurbished electronics resale:

Returned devices were refurbished and resold on Walmart.com at competitive prices, giving customers affordable access to premium products while reducing waste.

The impact

This initiative turned returns into revenue, achieving:

$3 Billion in new revenue:

Walmart’s refurbished electronics program generated over $3 billion in incremental revenue, proving the profitability of sustainable practices.

Significant waste reduction:

Millions of pounds of waste were diverted from landfills, reinforcing Walmart’s commitment to environmental leadership.

Expansion through Walmart Restored:

The success of the program led to the creation of Walmart Restored, which now includes appliances and additional categories, making sustainability accessible across more product lines.

By reimagining the traditional return model, we helped Walmart set a new standard, demonstrating that sustainability and profitability can coexist.

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