Amazon Starts Charging Return Fee
For years Amazon has touted the simplicity and worry-free buying experience on its platform. If you buy something, and it turn out you don’t like it, or just changed your mind, then return it. No questions asked.
But those returns are piling up and are becoming an expensive problem for the company. Now in its latest move to deter returns, Amazon has started charging customers a $1 fee if they return items to a UPS store when there is a Whole Foods, Amazon Fresh grocery store or Kohl’s closer to their delivery address.
Amazon owns Whole Foods and Amazon Fresh store, and has a partnership deal with Kohl’s.
Recently Amazon also started flagging “frequently returned” products on its website. Amazon is adding the badge to product listings on items with “significantly higher return rates for their product category”.
Returns are a big problem for the whole retail industry. Customers sent back around 17% of the total merchandise they purchased in 2022, totaling $816 billion, according to data from the National Retail Federation. On top of that, retailers have to cover costly shipping fees and then have to mark down returned goods to sell them.
HT: The Information
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