Depends on the item, Liz. Larger and or bulky items often get picked up from your home and they affix the label they have or they tape what you printed out at home. Smaller items seem to be up to the customer. That said, 4c in price difference for canned goods seems to be in-line with most retailers. Just compare Krogers and their various brands across the states to Von's or even Costco when you breakdown a case of them into cost per can. It'd be wiser to compare Walmart's online price to Amazon. That said, you should still shop around when you're buying stuff because sometimes Amazon doesn't have the upper hand. I wouldn't care about a few cans, but if I were ordering 100 cans or more, then I'd care. However, even with a $4 difference I'm still inclined to go with Amazon merely because they're easier to deal with.
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Yeah those people were blatantly defrauding Amazon. It's a bit like getting a Costco membership, buying hardware and returning it every so often for years. Costco keeps a record of all your purchases even if you cancel your membership and go back to them years down the line.
In all of my life, I've probably returned items less than a dozen times. Maybe 15 at most. I always make sure I know what I'm purchasing and double-check. If it's online, I chat or speak to a rep to confirm what I'm ordering is what I want. I'll do research to make sure items match up. Easier at a regular store, obviously. People who complain about being banned are usually holding out on other information. If it were as common as they make it out to be, we'd be hearing more than the occasional story or two each year.