Online orders can be challenging to return to their sellers, and while doing so is normally free for the client, retailers are forced to liquidate substantial sections of their inventory at a loss due to the expense of the returns. This negative effect will unavoidably result from the growth of online commerce. Customers must exercise a certain amount of faith while purchasing online because they cannot physically inspect an item before making a purchase. Amazon has created a solution in an effort to lower return rates and save money for everyone.
According to The Information, Amazon has reportedly started to display a warning sign on products that are regularly returned (via The Verge). The highlighted products appear to be being sold by independent sellers, with the e-commerce behemoth handling fulfilment.
The most recent action appears to be a component of Amazon’s bigger waste reduction initiative. The business received criticism in 2021 for trashing millions of unsold goods at its UK facilities. Later, Amazon made a commitment to drastically cut back on product disposal through a scheme that enables other retailers to resale returned goods as used goods.
According to a National Retail Federation analysis, goods returns would reach a record high of $761 billion in 2021. While many businesses work to help retailers with this issue, the sad reality is that the high return rates associated with online shopping are mostly a result of the weak return policies of corporations like Amazon, all in the interest of capturing more market share in a fiercely competitive sector.
Amazon aspires to discourage customers from making regrettable purchases by using the new warning label and to encourage vendors to be open and honest in their listings. Customers can easily change their minds about an Amazon order or item before the item ships, saving businesses time and money.
If retailers want to prevent tons of unneeded goods from ending up in landfills, they need go beyond simply flagging products and instead figure out why customers return them in the first place.
Alexis Boutilier is from Vancouver, British Columbia. She has a high interest in all things tech and loves to stay engaged on all the latest appliances and accessories.