Amazon built his business on customer service, believing that everything would fall into place if the company made shopping easy and convenient. Example: Their return policy allows customers to return millions of unwanted items for free.
But this return policy is also extremely expensive. In 2021, a record $761 billion worth of merchandise was returned to retailers, according to the National Trade Federation.
Now Amazon wants its customers to think twice before returning products. The e-commerce giant has quietly set up a new policycharging customers a $1 fee if they return items to a UPS store instead of a whole foodsAmazon Fresh or Kohl’s closer to their address, according to a report by Information.
Amazon owns whole foods and Amazon Fresh, and Kohl’s partners with the company.
Amazon also warns consumers against “frequently returned“Items sold on their site. They recently introduced a badge that tells shoppers to check product details and customer reviews on items with higher return rates in their product category.
Amazon cuts costs
The new return fees are the latest in a series of cost-cutting measures implemented by Amazon. Last month the company announced it would lay off 9,000 workers, following a previous round of layoffs last year that saw pink sheets distributed to more than 18,000 employees.
While Amazon’s return fees are surprising, they’re not unprecedented. Other retail chains have recently removed their free online return policies, including Abercrombie & Fitch (which charges $7), American Eagle, Foot Locker, Urban Outfitters and Zara.
If there’s any good news from these new return policies, it’s that they have a positive impact on the environment. According Optoro.
Fewer returns means less waste, although it may cost you.