Will Amazon Customers Revolt Over Return Fees?

Amazon.com has begun charging return fees on products brought to the UPS Store.

The retail and technology giant has begun charging a $1.50  fee when customers drop off product returns at a UPS location instead of a nearby Amazon Fresh, Kohl’s or Whole Foods, reports The Information.

Amazon has added fees to returns in cases where customers indicate that they changed their minds about a purchase or accidentally placed an order. The $1.50 is deducted from the amount refunded to customers.

The fees are being added, eSeller 365 reports, as Amazon looks for ways to reduce supply chain costs and bolster profits. The company does plan to continue offering free returns on products brought back to its preferred destination points. Amazon has long sought to reduce its reliance on outside logistics suppliers for order deliveries and returns as it has built one of the most extensive parcel services in the world.

The News of Amazon tacking on return fees has followed closely behind another report by The Information that found the online seller has begun labeling products on its site that are frequently returned. Amazon advises browsers to check item details and customer reviews before putting these items in their shopping carts.

“We’re always innovating on behalf of customers to improve the shopping experience,” Amazon spokesperson Betsy Harden told USA Today. “We’re currently showing return rate information on some product detail pages to help our customers make more informed purchase decisions.”

Amazon is believed to be using the “frequently returned” designation to pressure manufacturers and third-party sellers to fix the issues that lead to items being returned.

Some of those selling on Amazon throw the blame back on the platform claiming that its fast checkout and deliveries combined with easy returns promote customers sending back items they might otherwise keep. These sellers claim that the returns on products sold on Amazon exceed those ordered from other platforms.

The good news is that a combination of factors, including consumers shopping in stores, new return policies and advancements in artificial intelligence technologies, are reducing retailers’ return rates.

Insider Intelligence has forecasted that online return rates will fall to 18.2 percent this year, down from 21.7 percent in 2021. It expects the rate of returns to drop to 14.7 percent by 2026.