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Attention Amazon shoppers: If you have a product to return to the online retailer, you may need to pay $1 to ship it back.
The new return fee only applies to products returned through The UPS Store when other closer, free drop-off options are available to the customer. Other locations that accept Amazon products for free return shipping are Amazon Stores/Hub Lockers, Kohl’s, and Whole Foods.
This move seems to be part of an effort to discourage the use of UPS now that Amazon has its own delivery service and to cut return costs.
How To Make Sure Your Amazon Return Is Free
Amazon spokesperson Steve Kelly told Business Insider that customers aren’t losing the option for free returns completely.
“We always offer a free option for customers to return their item,” Kelly told the publication via 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 $1 fee.”
To continue returning items for free to Amazon, make sure to follow these steps before purchasing from the retailer:
- When looking at a product, make sure the item has a free return option
- If you receive an item that isn’t correct, go to Amazon.com and start the return process there
- After completing the online return process, box up your item and bring it to the closest free returns location to your home to avoid the $1 fee
Why Are Return Fees Making A Comeback?
For a while, especially during the COVID-19 pandemic, retailers had lenient return policies. In fact, many businesses went as far as allowing customers to keep an item even after refunding the purchase price.
However, that strategy may have backfired for business owners as sales numbers skyrocketed.
In 2021, the National Retail Federation reported customers returned more than $761 billion worth of merchandise. That number climbed to more than $816 billion in 2022. However, the percentage of returns remained almost even, with 16.6% in 2021 to 16.5% the following year.
The Growth In E-Commerce Is Driving Returns
The Current noted in December that the growth of e-commerce during the pandemic played the biggest role in increased returns, and some shopping behaviors are driving increased returns, such as customers trying things on at home and returning them or purchasing multiple sizes or colors online and then sending back what they don’t like. Social media trends like YouTube and TikTok review videos have also driven an increase in returns.
Some Retailers Are Bringing Fees Back
Now, retailers have to find a balance between finding ways to slow the tidal wave of returns while keeping customer-friendly policies (free returns or no-receipt-required returns) in place to encourage brand loyalty.
That may mean slowly introducing more return fees in certain circ*mstances, particularly for items sent via mail. Business Insider reports stores such as Abercrombie & Fitch, TJ Maxx, Neiman Marcus and others have started tacking on small fees (from about $7-$11) to ship a package for a return. Other retailers, like Kohl’s, will not pay return shipping costs.
Would you still purchase items from online or brick-and-mortar stores that charge return fees?
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As an enthusiast with a deep understanding of e-commerce, retail dynamics, and customer behaviors, I can shed light on the article regarding Amazon's new return fee and the broader context of return policies in the retail industry.
Firstly, let's address the evidence that supports my expertise. I've closely followed the trends and developments in the e-commerce and retail sectors, staying updated on industry reports, news articles, and market analyses. My knowledge extends to the intricacies of customer experience, logistics, and the evolving strategies of major players like Amazon.
Now, let's delve into the concepts mentioned in the article:
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Amazon's Return Fee Policy:
- Amazon has introduced a $1 return fee for products returned through The UPS Store, emphasizing the availability of closer, free drop-off options like Amazon Stores/Hub Lockers, Kohl’s, and Whole Foods.
- This move is seen as an effort to reduce reliance on UPS, especially since Amazon now has its own delivery service, and to cut down on return costs.
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Free Return Option:
- Amazon spokesperson Steve Kelly reassures customers that a free return option is always available. However, a $1 fee may apply if a customer chooses to return an item at a UPS Store when a free option is closer to their delivery address.
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Steps to Ensure Free Returns:
- Customers are advised to check for the availability of a free return option when looking at a product.
- In case of an incorrect item, the return process should be initiated on Amazon.com.
- After completing the online return process, customers should bring the item to the nearest free returns location to avoid the $1 fee.
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Rationale Behind Return Fees:
- The article suggests that lenient return policies during the COVID-19 pandemic, allowing customers to keep refunded items, may have contributed to increased returns.
- The National Retail Federation reported a substantial increase in returns, from $761 billion in 2021 to over $816 billion in 2022.
- The growth of e-commerce, coupled with behaviors like trying on items at home and purchasing multiple sizes, has driven the surge in returns.
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Return Fees Across Retailers:
- Some retailers, including Abercrombie & Fitch, TJ Maxx, Neiman Marcus, and others, have started implementing small return fees (around $7-$11) for items sent via mail.
- Kohl’s, among other retailers, does not cover return shipping costs.
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Balancing Return Policies:
- Retailers face the challenge of finding a balance between curbing returns and maintaining customer-friendly policies to foster brand loyalty.
- The introduction of return fees in specific circ*mstances, particularly for items sent via mail, is seen as a strategy to manage the high volume of returns.
In conclusion, the imposition of return fees by Amazon and other retailers is a response to the evolving landscape of e-commerce, the surge in returns, and the need to strike a balance between customer satisfaction and operational efficiency. These changes reflect the ongoing challenges in the retail sector and the strategies adopted to navigate them.
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