As far as I know, they'll only do that for really expensive items. I've never been given the pickup option for my returns (the most expensive was worth a bit under $300).

I've seen it for a variety of items, but I'm in downtown Manhattan- I suspect the economies of scale make a difference here.

The local delivery is a killer.

I can order by 9AM and, for just $3.99, have it delivered that same day.

The first time I did this, I forgot I even had Prime, so I was ready to pay for that for 3-5 day shipping. What a pleasant surprise that was!