How Amazon’s Broken Returns Process Is Driving Sellers To Leave Amazon

Returns on Amazon are easy for shoppers, but they’re risky and expensive for sellers, driving some to exit the popular Fulfillment by Amazon program, while others want to leave Amazon altogether. Amidst a big rise in returns fraud, customers have received poopy diapers and a breastmilk chiller with someone else’s rotten breastmilk inside. But with Amazon charging some sellers a new returns fee and adding a warning label to frequently returned items, return rates are starting to drop. CNBC talked to seven Amazon sellers to find out how they’re handling the rising cost of returns.

Chapters:
0:00 Introduction
2:34 Rising costs, rising prices
7:08 Customers who cheat
10:02 Reselling responsibly
12:41 Zero product disposal?

Produced by: Katie Tarasov
Edited by: Mike Heffron
Additional Camera: Luke Rafferty, Jacob Schatz
Senior Director of Video: Jeniece Pettitt
Animation: Jason Reginato, Emily Park
Additional Footage: Amazon, BestSelf, Beau and Belle Littles, Ceres Chill, GeekStands, Getty Images, GoodBuy Gear, Sterling Spectrum

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How Amazon’s Broken Returns Process Is Driving Sellers To Leave Amazon