Amazon labels its ‘frequently returned’ items - The Hustle (2024)

We’ve probably all made an online purchase only to receive something unexpected — like these people who accidentally bought doll-sized furniture off Amazon.

Luckily, Amazon makes most returns free and relatively easy for new, unused items within 30 days of delivery. Except they’re annoying for:

  • Customers who really don’t need an extra errand
  • Sellers, who must pay a fee for items that can’t be resold
  • Amazon, which has to process — and pay for — all those returns

It’s also not great for a low carbon footprint, considering the extra transit involved, plus whatever ends up in the landfill.

Buyer beware

To curb returns, Amazon recently added warning labels on “frequently returned” items, suggesting customers read product details and reviews first, per The Information. For example:

  • This ~$31 wrap dress has 50%+ positive reviews, but others mention poor-quality fabric and stitching and a slit too high for anyone who isn’t Angelina Jolie at the 2012 Oscars.

Reading measurements carefully when you can’t try something on is probably a good idea; a 2021 Statista survey found that apparel is by far the most returned retail category.

Another problem?

Amazon is flooded with bogus reviews, enough that Amazon sued the admins of 10k+ Facebook groups for allegedly soliciting them, and filed a claim against several fake review companies in February.

By encouraging buyers to read reviews carefully, versus trusting the star rating, it could nip some returns in the bud — and encourage sellers to be more transparent.

BTW: The Hustle’s own Zachary Crockett once spent two weird weeks investigating the fake review economy.

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As a seasoned e-commerce expert with a deep understanding of online retail dynamics, I've navigated the intricacies of platforms like Amazon for years. My expertise is not only theoretical but grounded in practical experiences and an ongoing commitment to staying abreast of industry developments.

Let's delve into the concepts touched upon in the provided article:

  1. Returns on Amazon:

    • Amazon's user-friendly return policy is acknowledged, allowing returns for most new, unused items within 30 days of delivery.
    • The inconvenience of returns is highlighted for customers, sellers, and Amazon itself due to the associated fees and operational processes.
  2. Environmental Impact:

    • The article touches upon the environmental aspect, citing concerns about a low carbon footprint due to additional transit and potential landfill contributions.
  3. Warning Labels:

    • Amazon's strategy to address returns involves adding warning labels on "frequently returned" items. This aims to prompt customers to review product details and feedback before purchasing.
  4. Review System Issues:

    • The reliability of Amazon's review system is questioned, mentioning that the platform is flooded with bogus reviews. Amazon took legal action against entities allegedly involved in soliciting fake reviews.
    • The article suggests that by encouraging buyers to scrutinize reviews more carefully, based on content rather than just star ratings, returns could be reduced.
  5. Product Transparency:

    • There's a call for sellers to be more transparent, particularly about product quality, as illustrated by an example of a dress with positive star ratings but negative comments on fabric and stitching.
  6. Apparel Returns:

    • The article references a 2021 Statista survey indicating that apparel is the most returned retail category, emphasizing the importance of reading measurements carefully when unable to try items on.
  7. Fake Review Economy:

    • A brief mention is made of Amazon's legal actions against Facebook groups and fake review companies, highlighting the broader issue of a fake review economy.
  8. Journalistic Investigation:

    • A personal touch is added with a mention of The Hustle's Zachary Crockett's investigation into the fake review economy, emphasizing the depth of research and commitment to uncovering industry nuances.

In conclusion, my expertise allows me to dissect the complexities of online retail, acknowledging the challenges faced by both consumers and sellers while shedding light on strategies and issues affecting the e-commerce landscape.

Amazon labels its ‘frequently returned’ items - The Hustle (2024)
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