[CNBC] How Amazon’s Broken Returns Process Is Driving Sellers To Leave Amazon

[jml]

How Amazon’s Broken Returns Process Is Driving Sellers To Leave Amazon

Just came across this on YT.
Amazon’s return problem is not a new topic, but I’m honestly thankful for any media exposure.

[SellerFeller]

Coincidentally, just had a customer want to return a $400 automotive product that they bought a year ago because they sold the vehicle it was going to go on. Attempt was made as an order cancellation (yes, customer wanted to cancel an order delivered to them a year ago), at which point I politely explained that they were outside of the 30 day return window. Now I wait for some clueless Amazon rep to authorize the return for the customer.

[lake]

There are probably more returns than there should be, but there are always more returns, in retail, than there should be.

Experienced retailers know this, plan for it, and often negotiate compensation from the manufacturers for returns. They know how it is going to be paid for. without reducing profits to unacceptable levels.

Unfortunately, all Amazon sellers are not experienced retailers. Many Amazon sellers are only marginally profitable, even some high volume sellers. Driving sellers to leave Amazon is inevitable, and maybe even merciful, in many cases.

[papy]

The summary from YT:

Returns on Amazon are easy for shoppers, but they’re risky and expensive for sellers, driving some to exit the popular Fulfillment by Amazon program, while others want to leave Amazon altogether. Amidst a big rise in returns fraud, customers have received poopy diapers and a breastmilk chiller with someone else’s rotten breastmilk inside. But with Amazon charging some sellers a new returns fee and adding a warning label to frequently returned items, return rates are starting to drop. CNBC talked to seven Amazon sellers to find out how they’re handling the rising cost of returns.

Chapters:
0:00 Introduction
2:34 Rising costs, rising prices
7:08 Customers who cheat
10:02 Reselling responsibly
12:41 Zero product disposal?

#CNBC How Amazon’s Broken Returns Process Is Driving Sellers To Leave Amazon

@lake

Unfortunately, all Amazon sellers are not experienced retailers. Many Amazon sellers are only marginally profitable, even some high volume sellers.

But there are also plenty of savvy Sellers for whom Amazon is just one of several sales channels, and who report that their Amazon return rates are significantly higher compared to similar sales volume on other channels.

Plus, the fact that Amazon return rates are dropping in response to changes that Amazon itself has made suggests that the issues are not always Seller-specific.

[ASV_Vites]

We somehow have a 1.4% return rate on Amazon in a category where returns aren’t even allowed…

Figure that one out.

Walmart is much lower and they allow returns…

So yea, the article is correct. The return program is extremely abused by buyers. And I’ve said this 100X - it’s because buyers think they are hurting Amazon so they don’t care.

[lake]

@papy

But there are also plenty of savvy Sellers for whom Amazon is just one of several sales channels, and who report that their Amazon return rates are significantly higher compared to similar sales volume on other channels.

Not surprising but Amazon does nothing extra to discourage its own returns, has found a way to keep that from impacting their bottom line, and entertains the concept of dropping products which have too many returns. Yes it is taking additional actions which affect all Amazon fulfilled orders. But IMO the most important is making buyers aware of products which have high return rates and products which do not.

The important seller specific action is what sellers do to protect their profit in the Amazon sales environment, and many sellers do nothing.