In an attempt to get Amazon customers return fewer and fewer ordersthe company will implement a new fee for returning items to UPS stores.
As announced by the company, they will begin to charge customers a $1 fee if they return items to a UPS store when there is a Whole Foods, Amazon Fresh or Kohl’s grocery store closer to your delivery address.
The move was taken because Amazon owns Whole Foods and Fresh, and has a partnership agreement with Kohl’s.
For decades, Amazon built its business by creating purchases that were quick and easy: “you don’t like it, just return it.” But now customers have constant regretsso handling returns has become a costly problem for the company.
For this reason, Amazon and other companies are trying to curb this habit of customers.
Amazon recently also began marking “frequently returned” products on its website. This is a badge to product listings in items with “significantly higher return rates for its product category,” a spokesperson said.
But Amazon is not the only one. Zara, H&M, J.Crew, Anthropologie, Abercrombie & Fitch and other chains are now charging fees up to $7 dollars to return items online and some retailers have adjusted the times allowed for a return.
The clients returned about 17% of the total merchandise they purchased in 2022for a total of $816 billion, according to data from the National Retail Federation.
This figure means that for every $1 billion in sales, the average retailer incurs $165 million in merchandise returnsaccording to the NRF.
Businesses have to cover expensive shipping fees to get customers to return their products. In addition, stores have to lower the prices of returned products to sell themfurther reducing your profits.
Charging return fees is the latest in a series of measures Amazon has begun to implement to save costs. At the end of February, it announced that its corporate workers will have a reduction of up to 50% of their salary in some cases.
Amazon stock value fell 36% during 2022in the midst of important changes in the consumption of technology and a growth of its workforce that was unsustainable.
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Source: La Opinion
