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Amazon Stops Giving Refunds When an Item's Price Drops After You Purchase It (recode.net)

Amazon has for years issued refunds to users when the price of an item drops after they've purchased it. But lately the e-commerce giant hasn't been doing that on a number of products, except for televisions, according to price-tracking companies. Recode reports: The move may have something to do with the rise of startups that track prices for Amazon customers and automatically request refunds when appropriate. One of them, a Santa Monica-based startup called Earny that is backed by the startup incubator Science, first pointed out the change. Earny scours a customer's email inbox for digital receipts, and then continuously checks the price on a retailer's website to see if it drops.

28 of 164 comments (clear)

  1. What? by U2xhc2hkb3QgU3Vja3M · · Score: 5, Insightful

    Earny scours a customer's email inbox for digital receipts...

    Yeah.... no.

    1. Re:What? by Anonymous Coward · · Score: 2

      Same here. No! I am NOT giving you access to my inbox.

    2. Re:What? by 93+Escort+Wagon · · Score: 5, Insightful

      I'm sure lots of people do, though. Heck, look at all the people who don't even blink an eye before allowing Facebook full access to the contact list they have on their personal computer - and that's not even promising to save them a few cents.

      --
      #DeleteChrome
    3. Re:What? by mysidia · · Score: 2

      Yeah.... no.

      How about you create a second dedicated e-mail account, so you give Earny the creds to a different account instead of your main one, and setup rules to auto-forward e-mails that you want earny to take a look at?

    4. Re:What? by EvilSS · · Score: 4, Interesting

      Just setup a gmail account specifically for amazon.

      --
      I browse on +1 so AC's need not respond, I won't see it.
    5. Re:What? by epyT-R · · Score: 2

      Why? Amazon is doing this because of 'Earny'. Amazon is not the one scouring your mailbox. However, it is amazon's fault for playing with variable pricing schemes. Earny showed up to even the playing field.

    6. Re:What? by luis_a_espinal · · Score: 2

      Which is why you don't let them scan your normal email account, and create a sandboxed account instead. Perhaps you should have paid attention to the words you cropped out:

      specifically for amazon

      Exactly. A person simply needs to set up sandboxed e-mail accounts for different things. That's what my wife and I do... and she isn't a techie. Non-tech people typically do not think that way, which is understandable (and precarious). But once you explain the benefits, they jump right. It is (supposed) tech people who do not think that way that baffles me.

  2. So, Amazon was counting on only a few customers by QuietLagoon · · Score: 2

    to ask for the refund, however, when a larger number of customers started asking for the refund, then it was no longer cost-effective.

    1. Re:So, Amazon was counting on only a few customers by JackieBrown · · Score: 3, Insightful

      to ask for the refund, however, when a larger number of customers started asking for the refund, then it was no longer cost-effective.

      I agree. Once of those things we lost due to other companies leaching off of them.

      If that happened for every sell, then there would never be price drops.

      My price doesn't go up if the cost is raised. Why should it go down if lowered?

    2. Re:So, Amazon was counting on only a few customers by dj245 · · Score: 3, Insightful

      to ask for the refund, however, when a larger number of customers started asking for the refund, then it was no longer cost-effective.

      I agree. Once of those things we lost due to other companies leaching off of them.

      If that happened for every sell, then there would never be price drops.

      My price doesn't go up if the cost is raised. Why should it go down if lowered?

      In general, I agree with you, but Amazon has set up a system where it is easy to play games with pricing. I've seen differences depending on if I am logged in or not, which account I am logged in under, whether I am logged in on a "prime" account or not, and other shenanigans. Prices seem to sometimes be higher or lower depending on how long something has been in a wish list or cart. Amazon and their vendors are certainly gaming the system (which they created for their own benefit) and showing no mercy, fairness, or common courtesy in the pursuit of separating me from my hard-earned money. You can be assured that these pricing games are not for your benefit. In that kind of environment, why wouldn't a person use every means available to try to get a the best possible deal?

      --
      Even those who arrange and design shrubberies are under considerable economic stress at this period in history.
    3. Re:So, Amazon was counting on only a few customers by Cajun+Hell · · Score: 4, Insightful

      If Fuck You is why, then why did the previous policy exist?

      Either Amazon suddenly got a little eviller, or some other condition changed.

      I think the "this is costing us more than it used to" explanation fits the facts pretty well. It used to be segmented marketing, where they charge people depending on how much they care/complain. If you're a squeaky wheel, you get oil. If you're a silent wheel, no oil for you. Then robots came in to automate squeaking, independent of how much the user cares. You can't do segmented marketing when the segments all merge.

      --
      "Believe me!" -- Donald Trump
    4. Re:So, Amazon was counting on only a few customers by twotacocombo · · Score: 2

      So if you went to the gas station the day after you bought a tank, and they lowered their price by $0.02, you show them your receipt from the day before, and they give you cash back?

      Because you can't return gas, ever. You can't just pour your gas back into the storage tank and demand a refund. Gas is also a product with inherent price volatility, and it never goes on sale; same as the stock market. The price matching many stores do is to avoid the hassle of you returning that (returnable) item and then immediately repurchasing it at the sale price.

    5. Re:So, Amazon was counting on only a few customers by Registered+Coward+v2 · · Score: 2

      If Fuck You is why, then why did the previous policy exist?

      To keep prices higher. Customers are more willing to buy and less price sensitive if the believe they can still take advantage of a better deal. As a result, they tend to do less price research. Companies, OTOH, know if they drop prices they will not get purchases from their competitors customers who will simply get a price match and sell products for less to boot, thus making less money. Price matching is a way to signal you will not start a price war but will hurt your competitor if they start one. A a result everyone offers price matching and no one cuts prices. Most price matches exclude limited quantities, black Friday's, percent off etc. which allow companies to do promotions without starting price wars.

      --
      I'm a consultant - I convert gibberish into cash-flow.
    6. Re:So, Amazon was counting on only a few customers by amicusNYCL · · Score: 3, Insightful

      It seems like abuse of the system to me. Amazon had that policy so that people could feel confident shopping there, knowing that if the price dropped then they could go back and get the difference. Instead, a cottage industry formed specifically to get people all of the price drop refunds any time they happen. That wasn't why Amazon had the policy to start with. If that was what Amazon wanted to do then they would have automatically credited every account every time a price was lowered. That was not their sales plan, the policy was there so that you don't need to wait for a sale. If you buy something that goes on sale next week then instead of feeling burned Amazon can generate a little customer goodwill and loyalty by giving you the difference if you ask. It wasn't supposed to be an automated process.

      Personally, if I was in the place of whoever was making those decisions at Amazon I would enjoy changing our policy to put out of business a bunch of companies that I see as freeloading off my customers.

      --
      "Our two-party system is like a bowl of shit looking at itself in a mirror." - Lewis Black
  3. Re:Newegg does the same thing by JackieBrown · · Score: 5, Informative

    I haven't used Newegg in years. Their return policy is terrible.

    If I get a defective product from Amazon, they send me a new one before asking for the return. Newegg wanted their product first, charge me return fees since it's not their fault it's defective, and charged me shipping for the replacement.

    Only had to have that happen a few times to say to hell with them. Plus, their prices are not very competitive anymore.

  4. I have noticed this as well... by FlyHelicopters · · Score: 3, Interesting

    I buy a TON of things from Amazon, I'm a heavy Prime customer...

    That being said, my last three price adjustment requests in the past two weeks have all been denied, which is very odd.

    I do it manually, just when I notice things... I buy at least a half a dozen items a week from Amazon.

    This change will make me think twice before buying as much.

    1. Re:I have noticed this as well... by PCM2 · · Score: 3, Informative

      That being said, my last three price adjustment requests in the past two weeks have all been denied, which is very odd.

      Same. Only time I ever tried it was for a TV -- you know, an item where it would actually be worth getting the difference back -- and they denied it. Said there was no evidence it was retailing for the other price I mentioned, or somesuch (although my receipt might tend to indicate otherwise). I read some reviews and a lot of people apparently had the same experience. The refunds were fulfilled by some third party vendor who was apparently pretty shady (kind of like that godawful OnTrak shipping company that seems to be keeping itself afloat by tossing as many Amazon packages from still-moving vehicles as possible).

      --
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    2. Re:I have noticed this as well... by jittles · · Score: 2, Interesting

      I buy a TON of things from Amazon, I'm a heavy Prime customer...

      That being said, my last three price adjustment requests in the past two weeks have all been denied, which is very odd.

      I do it manually, just when I notice things... I buy at least a half a dozen items a week from Amazon.

      This change will make me think twice before buying as much.

      You're doing this manually but noticed three price adjustments in a two week period? Are you unemployed? I buy something on Amazon because I don't have the time to go to the store and pick it up. The last thing I am going to do is keep my eye out for price adjustments. If it's something like a TV that will deflate in value over the next year then I just watch the price myself until it's time to pull the trigger - or better yet - use a website to watch the price for me. If I needed it so badly that I couldn't wait for a price I was happy with, well what's a few dollars, then?

    3. Re:I have noticed this as well... by FlyHelicopters · · Score: 2

      You're doing this manually but noticed three price adjustments in a two week period? Are you unemployed?

      No, I simply do a lot of shopping there and keep an eye on my past purchases.

      About once a week, I take a look at anything over $50 or so that I've bought in the past month and click on it to see the current price.

      Amazon changes prices so often, it isn't hard to catch.

      I've gotten a lot of money back over the years this way.

    4. Re:I have noticed this as well... by evilviper · · Score: 2

      You're doing this manually but noticed three price adjustments in a two week period? Are you unemployed? I buy something on Amazon because I don't have the time to go to the store and pick it up. The last thing I am going to do is keep my eye out for price adjustments.

      Some items you only buy one in a great while, and then proceed to forget about them. Other items are consumable and you need to resupply on a fairly regular basis, so checking on the price every week or so is a good way to stock-up when the item is cheaper, and the routine isn't all that time consuming.

      In addition, Amazon has a healthy review and discussion system, so a decent number of users go back to write-up their thoughts, or look through the reviews, comments, and product questions of others. In the process, anyone would of course notice the prominently noted current price...

      --
      Slashdot gets worse every day... Pipedot: News for nerds, without the corporate slant
  5. Re:Newegg does the same thing by twotacocombo · · Score: 4, Informative

    I haven't used Newegg in years. Their return policy is terrible.

    Amen. I bought a board from them a few years back. Got the PC all built and running, but something was causing lock ups. Turns out several individual pins were bent in the CPU socket. There's no way I'm good enough to just bend a single pin in several different places, so it had to have come like that. I didn't want to wait a week+ without a PC while I shipped it back and they shipped me another one, so I purchased the same one overnight from Amazon and had it up and running the next day. Newegg's return policy for mobos is "No". Just "No". Even if they shipped it to you in three pieces, you cannot return for a refund under any circumstance. It took several days for them to at least agree to give me store credit. After spending thousands with them over the years, I found this to be an exceptionally poor way to handle a $150 purchase. I haven't been back to their site since, and I spend every opportunity I can advising people not to shop with them.

  6. Re:Why would you ever give that refund? by EvilSS · · Score: 2

    If you bought before a price drop, deal with it.

    Too many price drops and your storefront starts to look like Steam: people will only buy when the product is on sale for 50% or more.

    Depends on the return policy. Many B&M stores will price match for the same period as their return policy, otherwise people would just return the item and repurchase it anyway. Amazon charges return shipping if it's not due to a problem on their part (damaged, DOA, wrong item, etc) so it's got a bit of an advantage there.

    --
    I browse on +1 so AC's need not respond, I won't see it.
  7. Re:Newegg does the same thing by Nethead · · Score: 3, Funny

    It took several days for them to at least agree to give me store credit... I found this to be an exceptionally poor way to handle a $150 purchase. I haven't been back to their site since..

    So can I have your store credit?

    --
    -- I have a private email server in my basement.
  8. Re:Newegg does the same thing by AmiMoJo · · Score: 2

    You should lobby for better consumer protection laws, rather than relying on retailers being good to you.

    In the UK you get two weeks to return the item for any reason (including that the price dropped). Beyond that, you have strong protections if it is faulty, such as not having to pay return shipping.

    Make it the law.

    --
    const int one = 65536; (Silvermoon, Texture.cs)
    SJW, n: "Someone I don't like, and by the way I'm a fuckwit" - AC
  9. Re: welcome to the club, amazon.. by ShanghaiBill · · Score: 4, Insightful

    None of that applies to today's race to the absolute bottom in wages and working conditions.

    Working in a modern warehouse is nowhere near the "absolute bottom", and claiming that it is worse than 19th century plantation slavery is idiotic.

  10. Re:welcome to the club, amazon.. by Bowlich · · Score: 2

    In state where we've essentially outlawed any attempts at subsistence living? Yeah, go ahead and try to "quit" working and see how long before they drag you into court for something you've violated.

  11. Re:Newegg does the same thing by Anonymous Coward · · Score: 2, Informative

    > Newegg's return policy for mobos is "No". Just "No".

    Here's a randomly selected motherboard: http://www.newegg.com/Product/Product.aspx?Item=N82E16813128859

    "GIGABYTE GA-990FXA-UD3 R5"

    "Return Policies
    Return for refund within: 30 days
    Return for replacement within: 30 days
    This item is covered by Newegg.com's Standard Return Policy."

    Here is Newegg's Standard Return Policy: http://kb.newegg.com/Policies/Article/1167#44 and their rules regarding restocking fees: http://kb.newegg.com/FAQ/Article/1755

    (The money quote on restocking fees: "Newegg does NOT charge restocking fees for returns of defective products. If you have received the wrong product or it doesn't match what was shown on our site or we have made some other shipping error, there will be NO restocking fee and NO charge for a return label, provided the item is within its return policy period.")

    > Even if they shipped it to you in three pieces, you cannot return for a refund under any circumstance.

    That is damage from shipping and is eligible for return for replacement. Read http://kb.newegg.com/Policies/Article/1167#overall and http://kb.newegg.com/FAQ/Article/1403 (starting at "FULL INSTRUCTIONS").

    If your replacement item is undamaged and is not to your liking, it is covered by the original item's return policy. In the case of nearly every new motherboard, you can return for refund or replacement within 30 days.

    I have had to return a few items to Newegg for replacement or refund over the years. The process has been universally quick and hassle-free.

    Newegg may not have the lowest price for every item in their inventory, but they -unlike many Internet retailers (including Amazon)- absolutely will not settle with patent trolls under any circumstance. I'm willing to pay a bit more to help fund a company that refuses to feed the trolls.

  12. Re:So In Other Words... by TroII · · Score: 2

    Amazon has also begun closing accounts of people who "abuse" the return policy, in Amazon's opinion

    Meanwhile, they encourage you to subscribe to Prime and use it to buy items like clothing and shoes, which you obviously can't try on until they've been delivered. But heaven forbid stuff doesn't fit and you want to return it, now you're "abusing" the system and your account is terminated; by the way, thanks for all the Prime payments! Nice racket they have going.