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The Painful, Costly Journey of Returned Goods -- and How You End Up Purchasing Some of Them Again (cnbc.com)

Buyers return a huge number of packages they buy from Amazon and other e-commerce sites, so much so that retailers are sometimes left with little choice but to get rid of large swaths of inventory at a cost. Last year, customers in the U.S. returned about $351 billion worth of items that they had purchased from brick-and-mortar retailers and online stores, according to estimates by National Retail Federation. CNBC: There's a good chance that the $100 printer, the $300 wide-screen monitor, or the $170 router you recently bought from Amazon weren't supplied to the e-commerce giant by their original manufacturers. In fact, the order may have been fulfilled by someone like Casey Parris, who resells items that customers previously returned to retailers. Based in Florida, Parris spends about five hours each day visiting thrift stores and scanning auction and liquidation websites for interesting items, he told CNBC. Sometimes he finds auto parts, other times it's a pair of sneakers, and occasionally he purchases printer cartridges -- all with the goal of reselling them.

Walter Blake, who lives in Michigan, does the same. For years, he's been selling electronic items on Amazon that he acquires from a network of places. Blake and Parris are part of a growing cottage industry where dealers acquire discarded items at very low prices, only to resell some of them back on Amazon and eBay at a premium.

36 of 280 comments (clear)

  1. Yes, sometimes you get this form Amazon by SuperKendall · · Score: 4, Insightful

    I don't mind purchasing used goods, there are a lot of things that can be just fine if opened.

    But - I do like to know they have been exposed to other humans. Every now and again from Amazon you get a product that has obviously been opened to some extent, that you ordered as new.

    So far it's not been anything I cared to return (again), but I think Amazon should try to be extra careful to clamp down on any suppliers shipping anything ever opened as "new"

    --
    "There is more worth loving than we have strength to love." - Brian Jay Stanley
    1. Re:Yes, sometimes you get this form Amazon by Anonymous Coward · · Score: 3, Insightful

      Amazon is a fucking flea market. I got LOTS of damaged and returned goods. I actually cancelled my prime subscription, because it's not worth it when I'm constantly returning or settling for less than I paid for.

    2. Re:Yes, sometimes you get this form Amazon by mobby_6kl · · Score: 4, Insightful

      As long as it's marked appropriately, it's good for everyone really. Destroying returned goods would be absolutely insane.from economic and environmental angles so it's a win win thing.

      I don't mind buying refurbished stuff either if it's marked and priced accordingly. Amazon and other retailers of course should be making sure this is the case, but if you do get used stuff instead you can just return it again I suppose :)

    3. Re:Yes, sometimes you get this form Amazon by Anonymous Coward · · Score: 4, Informative

      Usually I get new items if the seller is Amazon. But occasionally even Amazon will sell you a used item as new. Maybe it's because they made a mistake, or because they inventory items from 3rd party sellers who are less scrupulous, and you got that one. If I get a used item from Amazon that I purchased as new, I give Amazon customer service a choice. I will return it for a new item, or they can knock the price down to the used price listed on their site. This is of course assuming it is just an open box and not damaged item.

    4. Re:Yes, sometimes you get this form Amazon by Anonymous Coward · · Score: 4, Funny

      Wal-Mart used to be the best. Way back in the olden days, when 56k modems were a thing, I bought one at the local Wal-Mart. Brand new, shrink-wrapped box. Got home, opened it up and inside was a block of wood, just the right size and weight.

      Customer returns item
      Put on new shrink-wrap and put back on shelf without actually checking the contents of the box
      PROFIT!!

    5. Re:Yes, sometimes you get this form Amazon by SuperKendall · · Score: 5, Funny

      Got home, opened it up and inside was a block of wood, just the right size and weight.

      That's why whenever I go shopping, I bring a power drill and only buy items if I drill into the box and no wood shavings end up on the bit.

      You might wonder about general viability, but there are some routers I've bought in the past that could only be improved by a drill right through the circuits!

      --
      "There is more worth loving than we have strength to love." - Brian Jay Stanley
    6. Re:Yes, sometimes you get this form Amazon by rudy_wayne · · Score: 5, Informative

      I don't mind buying refurbished stuff either if it's marked and priced accordingly.

      ** IF ** it's marked and priced accordingly.

      That's the problem. Too much deliberate fraud. Too many used/damaged/refurbished things being sold (and priced) as new.

    7. Re:Yes, sometimes you get this form Amazon by ChromeAeonuim · · Score: 5, Interesting

      The major difference being that at least eBay is honest about what they are, and when you buy from Seller X, you get items from Seller X. Amazon wants to be a marketplace and an individual market, and apparently has been known to bin items together under the assumption that they're all identical, so Item A bought from Seller X might be Seller Y's item. How are you supposed to trust that?

    8. Re:Yes, sometimes you get this form Amazon by Megol · · Score: 5, Insightful

      ... Never ordered Amazon again after that, Newegg only.

      Did you order from Amazon or from a vendor selling on Amazon? It's a huge difference.

    9. Re:Yes, sometimes you get this form Amazon by Rockoon · · Score: 5, Funny

      Maybe it's because they made a mistake, or because they inventory items from 3rd party sellers who are less scrupulous, and you got that one.

      1) Customer (A) returned item (X) as "broken."
      2) Send (X) to customer (B) for confirmation that the item is broken.
      3) Profit.

      --
      "His name was James Damore."
    10. Re:Yes, sometimes you get this form Amazon by Xest · · Score: 5, Insightful

      The main reason I don't buy refurbished is the price. I notice just before all major sales now Amazon in the UK tries to flog refurbished versions of their devices for like a 10% - 20% discount.

      You wait for the actual sale, and you can get a brand new one for a 35% - 50% discount.

      I'm happy to buy second hand stuff, if it comes at a second hand price - i.e. discounted to a greater degree than a new one ever is, but this seems to basically never be the case.

      And this isn't out of snobbishness towards second hand goods, but to protect myself, as it's often the case that these overpriced second hand goods often come with reduced rights. So for example, in the UK you have upto 2 years warranty by law, and potentially up to 6 years to get a refund/replacement/repair on a faulty device, IF that device could reasonably be expected to have lasted that long. Therein lies the problem though, and where you lose protection under the law; a retailer like Amazon may accept that a high end product bought new should've lasted longer than it did under this law. However they would almost certainly be able to get away with not acting to fix/replace/refund on it if it was second hand, even if you paid the exact same price for it, because by nature of it being second hand they can reasonably argue that it shouldn't be expected to last as long.

      So the reason I expect a second hand product to always be sold lower than the cheapest price of an identical brand new product isn't because I'm out for a bargain, but simply because the very nature of it being second hand comes with reduced consumer rights and protection, and therefore simply has an inherently lower value.

      If retailers are going to continue to be greedy and can't accept that, then they're going to be stuck with second hand inventory exactly as they always complain about.

    11. Re:Yes, sometimes you get this form Amazon by SCVonSteroids · · Score: 4, Interesting

      Then they wouldn't be "destroyed" and they wouldn't get full insurance value for them. Also, they're super-paranoid someone will sue over mold-induced sickness.

      This.

      I worked at Tim's growing up (prominent Canadian coffee shop, for you internationals) and we'd throw out large amounts of food/donuts at the end of the day. These were still very much edible for at least another day. (Trust me... they were.)
      One time, someone made the comment that we were throwing out so much stuff and I just had to ask, "Hey why don't these go to folks who actually need some food?" and the answer was simple; they can't risk the lawsuits if someone gets sick. There was also something in there about taking advantage (baker overcooks on purpose so more food gets "thrown out" for a good cause).

      In other words; we are our worst enemy. Almost everytime we try to do something to help others, there's always some people who will go above and beyond to take advantage of you.

      --
      I tend to rant.
    12. Re:Yes, sometimes you get this form Amazon by arth1 · · Score: 3, Insightful

      Newegg isn't what it was. After they went from private to public, they've gone downhill as far as customer experience and service is concerned. They're now as much a store front for other vendors as they are for themselves, and mislabeled and miscategorized products.

  2. Nothing wrong wit it IF... by Anonymous Coward · · Score: 5, Insightful

    There is nothing wrong with people re-selling thing as long as the following conditions are met:
    1-The item is thoroughly tested, and any problems fixed or the item is listed as having defects.
    2-It is clearly stated that the item is used or seller refurbished.
    3-The item is listed for half or less of the going online price for the same item brand new.
    4-If the item is listed as refurbished, any batteries must have been replaced with brand new batteries...if not, its USED, not refurbished!
    5-Items cannot be listed as "open box" if the item has ever been removed from the box! Removal from the box makes it USED!

    1. Re:Nothing wrong wit it IF... by Oswald+McWeany · · Score: 4, Informative

      4-If the item is listed as refurbished, any batteries must have been replaced with brand new batteries...if not, its USED, not refurbished!

      I used to buy refurbished products but I don't anymore. Refurbished doesn't always mean refurbished anymore. Quite frequently used products are sold as refurbished. Unless it is refurbished by the manufacturer itself, I don't trust that Refurbished actually means Refurbished.

      --
      "That's the way to do it" - Punch
    2. Re:Nothing wrong wit it IF... by ShanghaiBill · · Score: 4, Insightful

      3-The item is listed for half or less of the going online price for the same item brand new.

      This is a silly condition. As long as full information is provided, the product should sell for whatever the market will bear.

      For many products, being "used" makes little difference. Would you need a 50% discount to buy a used hammer?

    3. Re:Nothing wrong wit it IF... by rudy_wayne · · Score: 4, Funny

      That brand new laptop I bought from Amazon had some user named "Bruce" on the login screen. They don't check shit.

      Hey, what's your problem? What do you have against Bruce? What did he ever do to you?

    4. Re:Nothing wrong wit it IF... by Nidi62 · · Score: 4, Informative

      I wouldn't buy a used hammer. What possible reason could someone have for returning it other than it was defective?

      They found their other hammer that they thought they lost in that one drawer in the garage that they didn't check because why would it be in there?

      --
      The only thing necessary for evil to triumph is for it to be pitted against a slightly greater evil
    5. Re:Nothing wrong wit it IF... by XxtraLarGe · · Score: 5, Insightful

      What possible reason could someone have for returning it other than it was defective?

      Here's a few I can think of.
      Wrong kind: accidentally bought a framing hammer when they needed a claw hammer.
      Wrong size: too heavy for user.
      Wrong color: clashes with the rest of her collection.
      Wrong price: found same item for half the price elsewhere.

      --
      Taking guns away from the 99% gives the 1% 100% of the power.
    6. Re:Nothing wrong wit it IF... by sheramil · · Score: 4, Funny

      Nobody could lift it: except that buffed blonde guy with the eyepatch who delivered it.

  3. Odometer hijinx by epine · · Score: 4, Insightful

    The Market for Lemons (1970) never gets old.

    This paper effectively supports the regulatory intervention of government to ensure accurate public labelling of remarketware of all stripes and sizes.

    It's not by any means always a bad thing for flourishing private commerce that government maintains certain forms of caveat emptor in their fiat-powered gun sights. Who, precisely, wants a mode of private commerce where everyone sensible runs around with permanently cinched purse strings?

    Moral of the story: be careful what you drown in the bathtub if you value liquid enterprise.

  4. "through" Amazon, not "from" Amazon by jtara · · Score: 4, Informative

    There's a good chance that the $100 printer, the $300 wide-screen monitor, or the $170 router you recently bought from Amazon weren't supplied to the e-commerce giant by their original manufacturers. In fact, the order may have been fulfilled by someone like Casey Parris, who resells items that customers previously returned to retailers.

    No, you didn't purchase these "from Amazon". You purchased them "through Amazon". That's referring to an independent seller.

    As far as Amazon direct sales, they are transparent about it. Returns are sold through their own refurb department. (I think they have just rebranded this "Amazon Renewed"?) I have purchased several items and all were good deals in great condition. They disclose in advance anything cosmetic defect, missing item, etc. with photos. It is usually no more than a cosmetic defect to the BOX.

    I bought a high-end garbage disposer that had a scratch on the bottom. I really don't care if the plumber's eyes are offended by the scratch. ;)

    1. Re:"through" Amazon, not "from" Amazon by Fly+Swatter · · Score: 5, Insightful

      And this is why Amazon marketplace is stupid. It both floods their own website with junk AND waters down their own brand. I guess all that matters is that they make more money, until they don't.

  5. The customer is not always right... by bradley13 · · Score: 4, Insightful

    The fundamental problem is the mentality that "the customer is always right". That wasn't even what was originally said, all those years ago in Macy's. It was more along the lines of, don't argue with the customer in public.

    If something is broken, or wrong, or whatever - of course, you should be able to send it back. However, when it comes to abuse, the retail world needs to grow a spine. Just as an example: There is an online clothing retailer where I live. They have trendy stuff, and quickly became very popular with young women. The last I heard, a year or so ago, fully half of the clothes were returned. Some anonymous interviews with their customers revealed the reason: Lots of them would order 3 or 4 outfits, wear them out, or to parties, or whatever - show off something new - and then return the outfits, only to order more.

    The same thing happens in other branches, although non-clothing is a bit less personal. Who hasn't received a piece of electronics, or a toy, or whatever where the packaging has clearly been opened? If shop like the clothing retailer I mentioned stay in business, the only way they can do it is by sending out those very same articles again to the next customer. Sold as if they were new, not due to some shady middleman, but directly by the stores themselves.

    So we all pay the price for this crap. Getting (hopefully lightly) used stuff sold to us as new. And generally paying higher prices, because the associated costs have to be covered somehow. If you aren't familiar with the site NotAlwaysRight, you should have a look. It's where people in retail get to tell the stories of some of the customers they have to deal with. It's funny, sure, but it's also freaking sad...

    --
    Enjoy life! This is not a dress rehearsal.
    1. Re:The customer is not always right... by Solandri · · Score: 5, Insightful

      That's not what "the customer is always right" means. What it originally meant was that what the customer wants is always right. i.e. You need to figure out what your customers want if you want to increase sales. Or put another way, even if you think the customer should get something different, sell them what they want. In a battle between what you think the customer should get and what the customer thinks s/he should get, the customer is always right.

      The phrase has since been twisted by greedy customers who willfully misinterpret it as justification for getting more than they're paying for (i.e. stealing from the seller).

  6. Re:This is how I "rent" electronics for free. by wed128 · · Score: 5, Informative

    Wow, you're a shitty person!

  7. Re:Recycling is fine, as long as like new by omnichad · · Score: 4, Informative

    That's not the complaint. It's fine reselling it. But reselling it as *new* is fraud.

  8. News? by meglon · · Score: 5, Insightful

    Ebay's been around 20+ years now, and the premise has been pretty much the same for most of that time. If this had been posted as news in 2000, it still would have been old news.

    --
    Fascism: An authoritarian and nationalistic right-wing system of government and social organization. See also: NAZI's
  9. Re:This is how I "rent" electronics for free. by Anonymous Coward · · Score: 3, Insightful

    You obviously don't do this very often, or Amazon would have dropped you as a customer by now.

  10. A sad cultural shift by Anonymous Coward · · Score: 5, Interesting

    This is a sad shift of where we have come as a culture. It used to be that retailers that opted to provide high end customer service would include 'no questions asked' return policies and their premium customers appreciated this flexibility but mostly did not take advantage of it.

    Roll the clock forward and we now have people that knowingly abuse these policies. I know of people personally along with all sorts of anecdotes where they have purchased a big screen TV for the super bowl or a PPV fight or similar, throw a watching party, and then take the unit back for a full refund AND SEE NOTHING WRONG WITH DOING THIS. Their rationale is often that other people do it so why not, and/or the store lets me do it so what's the issue.

    The retailer often has no choice because all of their competition allow it so they will lose customers if they do not. This is often really hard on small locally owned stores because they have to compete with the chains, but do not have the purchasing power to push all those returns back to the vendor and so just have to eat up the discount they have to give to sell the 'previously opened' unit to someone else. And no, you can't just box it up and sell it as a new item - if you know it has been previously opened then legally in the US you are not allowed to sell it as 'new'.

    So at the end of the day the manufacturers and the retailers all mark their products up to recover the losses due to returns and the people who actually pay for things end up covering the cost of the asshats who think it is their right to game the system. There are of course cases where things need to be returned because they don't fit or are not the right color or w/e, but with most purchases you should be able to figure those things out without opening and using the product.

  11. Re:The full circle of the Food chain by Anonymous Coward · · Score: 5, Insightful

    I recently ordered a not inexpensive ($400~) smartphone from Amazon but they sent me the wrong sub-model. After initiating the return procedure, Amazon never sent a courier out to pick up the package. It was sitting on my coffee table for nearly a month and I had been in contact with no less than 6 Amazon reps, all of whom assured me that someone would be by to pick up the package. The last rep I spoke to issued a refund back to my credit card (which I verified) and said he would put in a "special" request to have the package picked up and that if it wasn't picked up, then I could keep the phone.

    Guess what happened? No courier showed up and I now have a free, albeit wrong sub-model, smartphone. In the meantime of waiting for the courier to show, I had bought the correct sub-model from a different online shop, so basically I got two for one. I ended up giving the free phone to my girlfriend because I had no use for it.

  12. Re:The full circle of the Food chain by arglebargle_xiv · · Score: 3, Funny

    The bottom always supports those above.

    But then things fall apart; the centre cannot hold! Anarchy is loosed upon the world.

  13. Re:This is how I "rent" electronics for free. by phalse+phace · · Score: 3, Funny
  14. Re:The full circle of the Food chain by negRo_slim · · Score: 3, Insightful

    Why do you need someone to pick it up for you? Just put it in a box and send it back yourself.

    --
    On the Oregon Cost born and raised, On the beach is where I spent most of my days
  15. Re:The full circle of the Food chain by Okind · · Score: 4, Informative

    I'm probably from a different country, so I don't know how these things work, but can you do that without paying postage, and do these shipping boxes fit in a typical post box?

    It's called "Reply Paid", "Business Reply Mail", "Freepost", or even "International Business Reply Service", and exists in several countries. More information is on Wikipedia: Freepost.

    In general, being able to return items without paying postage depends on where you live and who you bought the item from, but it certainly does exist. In the Netherlands, where I live, it's part of the competitive advantage of webshops: next day delivery is so ubiquitous that not having that actually means you lose customers, so your return policy becomes m ore important.

  16. Re:This is how I "rent" electronics for free. by Anonymous Coward · · Score: 5, Interesting

    I used to shop A LOT at Micro Center, so I got to know the store manager pretty well. My return rate was always around 5%-10%, which they considered pretty normal. But they had one guy who's return rate was over 100%. The infuriating part to me is that he had to go over $10K in purchases before they banned him. Yes, you read that right, he returned Every. Single. Thing. he ever bought. But that's only 100%. Yup. They had an amnesty period when they first opened, where you could return things without a receipt, and he had returned an old copy of Microsoft Office. This was about 20 years ago or so, so it was a substantial amount of money. People like that really ought to be taken out back and shot.