How broken Amazon returns are driving sellers to leave the platform
Return Amazon It is free and easy for shoppers, but it is risky and expensive for small businesses selling the majority of goods on the world’s largest e-commerce site. Some of the refunds pushed the popular satisfaction of the Amazon program, while others said that they want to leave the CNBC completely from the platform.
At the center of the problem, there is a major increase in the return fraud, which led to customers to buy products used by mistake when they ordered something new. In two terrible examples of infant products described to CNBC, Amazon sent a cooler to customers with diapers and someone else’s rotten breast milk.
Rachelle Baron, owner of Beau and Belle Littles, who sells reusable swimming diapers in Amazon, said, “I do not think how many small businesses and return habits of consumers affect small businesses and families like me.” He said.
Baron said that after a return incident with Amazon, his job tank. Baron said that the e-commerce platform sent dirty swimming diapers to customers after being returned to Amazon used baby products.
“Actually, there were two diapers with Poopy,” he said.
Approximately 14% of all US retailer in 2024 The returns were fraudulent in 2018 from 5%. a report National Retail Federation. The report cost 890 billion dollars for retailers in 2024.
Amazon started to charge in the Program (FBA) A new fee For products exceeding the thresholds in June 2024. The sellers enrolled in FBA rely on Amazon for logistics, including shipping, packaging and refunds.
In September, a few months after the entry into force of the wage, the e-commerce group heliium 10, Amazon sellers fell about 5%.
Helium 10 General Manager Zoe Lu, “the seller forces to have higher quality lists and higher quality products.” He said.
In Amazon It started to add a warning label to some “Frequently rotated items“This can contribute to diving.
Rising prices
However, the new fee may also lead to increasing prices.
One questionnaire E-Commerce Analysis SmartScout, 65% of the sellers, said that they directly increased prices in 2024 due to Amazon wage changes. Other sellers, CNBC’nin fraud raises the prices, he said.
CNBC spoke with a total of seven Amazon sellers to find out how to deal with the increasing cost of return.
“In Amazon, we get a clear snow slightly above about 1%,” Amazon, who sells sterling spectrum protective cases for hot wheels. He said. He said that the return rate in Amazon was 4% and only 1% in other markets. Walmart. “Amazon, who was responsible at the end of the day. If Amazon held them responsible, people would stop doing it.”
Amazon, CNBC’ye fraudulent returns tolerance and said he took action against some fraudsters. These measures require rejection of repayments and authentication.
Mike Jellif sells professional music equipment through the Amazon and Geekstans brand in the other eight markets. He said that the return rate in Amazon was three times higher than the average he saw elsewhere.
“Open ebayWe were allowed to block certain customers, “Jellif said.” But in Amazon, this customer is allowed to take back from us. “
Jellif, CNBC Tyler, Texas, warehouse, each item, the return and the box to watch the box showed about 40 camera systems. He uses images while appealing to Amazon, including when customers claim that they have never received a product. It keeps a black list of repetitives that have become such a fraud and returned to used and damaged items and become a complete loss for it.
Jellif, who did not trust FBA, said that Amazon has made some improvements during the return process. This includes Amazon allowing small enterprises to allow more than one objection while fighting a fraudulent return. Amazon also allowed the transfer of automatic return labels for products over $ 100 from 2023 onwards, and since then the return rate has decreased.
Mike Jellif, on June 6, 2025, at the Geekstands warehouse in Tyler in Texas. In other markets such as Jellif, Ebay and Walmart, he sees three times more return of professional music equipment in Amazon compared to average.
Jacob Schatz
Why was the return destroyed
Experts, the fraudulent and which returns are ready to sell again to find the labor intense and specific to the substance, he said. This creates plenty of space for error.
“Things are being missed because it is such a big operation,” helium 10 said. “I think they are kidnapped in margins, but these stories are very effective because such a reckoning for the brand.”
Lisa Myers, the founder of Ceres Chill, who once trusted Amazon to make a return to work as a part of FBA, has one of these stories.
In 2023, Amazon sent one of Ceres Chill’s products to a customer with rotten breast milk inside, and Myers said that the customer said that he would “never forget this smell”.
“I do not want to have something and I do not want to be dramatic but dangerous. He said. “This is the moment I cry and just sit and think, I have no idea how this could happen.”
Myers said that he left FBA after the incident and left the benefits like Amazon’s main badge.
Myers, “Amazon hurts our work done by our work hurts.” He said. “We are not just willing, we will never profit on the safety and obviously mental health of our customers.”
Instead, Myers uses all returns from external resources to baby sales specialist. Goodbuy equipmentThis year, 200,000 returning baby products continue to sell their products.
Responsible
Kristin Langenfeld began his goodbuy equipment when he was a new mother struggling to find quality, used running trolley.
“The last nine years have built a database with all products and variations, common problems, remembering.” He said. “For some of them, the item has 40 points we control itself, and it’s really complex.”
Langenfeld showed CNBC the process in the warehouse in Malvern, Pennsylvania, where each item was controlled for about 15 minutes and typically handled by at least four employees. The resource intensive process works. 33 new sellers have recorded three times more registered in 2024 than the previous year. And with a growing 50% annually, Columbus raises a larger warehouse in Ohio.
Five years ago, after visiting the refund of a large retailer, he inspired the refunds.
“There were signs banded on the ground, saying ‘burning’, ‘no’.” He said.
According to the inverse logistics software provider Optoro, feedback created an estimated 29 million -metric ton carbon emissions in 2024 and regulates 9.8 billion pounds.
In 2020, Amazon added two new options for sellers Return home again. “Buy Class and Re -Buy” allows all US FBA sellers to have Amazon’s return rate and mark it as “used” before selling. FBA liquidation allows sellers to re -reduce the goods palettes for re -sale in the secondary market through liquidity services such as liquidity services and to compensate for some losses.
In addition, there is also a FBA donation program that has existed since 2019 and allows sellers to automatically offer suitable excessive stock and return to aid groups through the Good360, which is not profit. Amazon, CNBC, these vendor programs, more than 300 million items per year gave a second life, he said.
Amazon also has the options of shoppers who want to keep feedback from burning or regular storage areas.
Amazon Re -Sale and open box goods, Amazon has been renewed sells renewed items and Amazon Outlet He sells excessive stock. DAILY DEAL SITE Moreover!It was purchased by Amazon for $ 110 million in 2010, and sells scratch and narrowed items. Customers can also be swap Some electronics such as Amazon devices, phones and tablets, for Amazon gift cards or them Certified recycling.
“I hope we can make a change as a country, we stop doing shit.” He said. “We must make high quality products for re -sales purposes.”
