Amazon will charge customers a commission for returning purchases

Amazon is trying new measures to force customers to return fewer of their online orders, including charging fees to return items via UPS. Writes about it CNN.

Photo: IStock

For decades, Amazon has built its business by making shopping fast, incredibly easy, and seemingly error-free. If you didn't like something, you could just return it.

But because many customers regret their purchases or simply spent more than they thought, processing returns has become a costly problem for the company.

For this reason, Amazon will begin charging customers a $1 fee if they return items to a UPS store when there is a Whole Foods, Amazon Fresh, or Kohl's closer to their delivery address. (Amazon owns Whole Foods and Fresh and has a partnership with Kohl's.)

On the subject: Amazon began to mark for buyers products that are frequently returned

In recent years, shoppers have grown accustomed to endless free returns, but Amazon and other companies are trying to curb this buying habit.

The internet service recently started marking items as "frequently returned" on its website. The company is adding the badge to product listings with "significantly higher return rates for its product category," an Amazon spokesperson said.

Zara, H&M, J.Crew, Anthropologie, Abercrombie & Fitch and other chains are now charging up to $7 for online returns; some retailers have tightened the return period.

Customers sent back about 17% of the total merchandise they bought in 2022, worth $816 billion, according to data from the National Retail Federation.

This is a big burden for retailers: for every billion dollars in sales, the average retailer receives $165 million in product returns.

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Companies must cover expensive shipping costs so that customers can send their products back. These items sometimes end up back in retailers' warehouses or on shelves. The stores then have to lower the prices of the returned items in order to sell them, further reducing their profits.

More often than not, returned products can end up in salvage yards or even landfills, posing a threat to the environment.

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