I only know the situation in Germany for that, and the law here is not even as straightforward as most customers expect, just the big online retailers are pretty relaxed with their return policies (because that is what the customers are expecting).
There is no situation where you could insist on keeping a defective product, and its also not commonly offered voluntarily.
It's ripe for abuse, so I'm sure companies have to be careful with it, but if it's low margin stuff it probably doesn't matter much anyways.
And also you can in principle be asked to cover any loss of value if you damaged the product or used it in any way that was not "necessary for testing/evaluation".
So far I had to return every item I did not like or that arrived damaged. Especially for obviously damaged goods it makes no direct sense for them to ask for it back to trow it away on their end, but I really think at least a retailer like amazon does not just hand waive a decision like that and has some economic reasons.
Somewhat related, once I noticed a significant price drop the day after I had bought a product from amazon, and asked support if they could refund me the difference. They could not, but told me to just order another one for the lower price and refuse the delivery of the first order (which means the logistics company returns the item directly).
So clearly "cheaper and simpler" for a company like amazon is not always as straightforward as one might expect.