Amazon's New Refunds Policy Will 'Crush' Small Businesses, Outraged Sellers Say (cnbc.com)
Amazon sellers are up in arms over a new returns policy that will make it easier for consumers to send back items at the merchant's expense. From a report: Marketplace sellers who ship products from their home, garage or warehouse -- rather than using Amazon's facilities -- were told this week by email that starting Oct. 2, items they sell will be "automatically authorized" for return. That means a buyer will no longer need to contact the seller before sending an item back, and the merchant won't have the opportunity to communicate with the customer. If a consumer is returning an electronic device because it's difficult to use, for example, the seller won't be able to offer help before being forced to pay a refund. "Customers will be able to print a prepaid return shipping label via the Online Return Center instantly," the email said. Additionally, Amazon said that it's introducing "returnless refunds," a feature that the company said is "highly requested by sellers." The change enables sellers to offer a refund without taking back an item that may be expensive to ship and hard to resell.
After my return experience with NewEgg where I bought a defective gaming motherboard and took three days of back and forth emails with tech support before finally having to pay for my own return shipping I switched to Amazon. Yes, I'll pay $5 more for that motherboard, but it takes 30 seconds to return it and the replacement will arrive in 24 hours.
Mike @ The Geek Pub. Let's Make Stuff!
'Outraged sellers' are welcome to get the hell out of Amazon and sell somewhere else, on their own terms.
Like in the Netherlands where sellers are required to take anything sold online back in 14 days no questions asked and refunds include shipping cost (to get the product to there customer, not back to the seller)
This seems to be a big issue with overseas sellers - I point to China because they're the most common - and shipping. My $5-20 item may come with free shipping, but when it arrives and is broken or turns out to be a fake piece of crap, the return cost may end up being more than the value of the item (especially if I want it tracked and within a reasonable time period).
Amazon is already taking 30% of the sales price PLUS 30% OF SHIPPING. There are very few things that can be sold for enough of a margin to make a profit with costs like that. Unlimited returns will remove any remaining profit from most merchants selling through Amazon.
But hey, who needs profit, right? Just keep selling things below cost, and eventually, you'll make a profit, right?
I don't respond to AC's.
becoming the global proxy for "Everything".
Do you realize that Amazon is the world's second biggest e-commerce company?
It is silly to label them a monopoly when they aren't even the market leader.