Amazon Changes Return Policy to Cut Down on Costs

By Yehudit Garmaise

Amazon customers who frequently return items should check to see whether those items’ descriptions include “free returns” at UPS stores because the retail giant has changed its return policy to cut down on costs.

While free return options for most items under 50 pounds are always available at locations such as Whole Foods, Kohl’s, and Amazon stores, if one of those businesses stands the same distance or closer to consumers’ homes than do UPS stores, Amazon customers will be charged an additional $1 return fee return. 

Retailers lose millions of dollars per year processing customers’ returns, reported GOBankingRates.com.

According to data from the National Retail Federation, every $1 billion in sales costs the average retailer $165 million after accounting for merchandise returns.

“We always offer a free option for customers to return their item,” Amazon spokesperson Steve Kelly stated by email. “If a customer would prefer to return their item at a UPS Store when there is a free option closer to their delivery address, a very small amount of customers may incur a one dollar fee.”

To further cut down on the piles of unwanted items heaped back onto Amazon, the website now marks items that are frequently returned with a badge.

Amazon’s new “frequently returned item” badge asks customers to check products' details and reviews to determine whether items have significantly higher return rates, as reported by Rockland Daily here.