Dive Brief:
- Amazon has launched a program allowing sellers using its fulfillment services to issue product refunds without customers returning the item, according to an Aug. 13 announcement.
- Fulfillment by Amazon Returnless Resolutions will help sellers avoid returns-related fees by cutting out the physical reverse logistics process and letting customers keep the items instead, the company said. Some products are ineligible for the program, including dangerous goods, heavy and bulky items, and those with an average sales price above $75.
- Sellers and customers tapping into Returnless Resolutions have to be in good standing with Amazon, as defined by the company. Only customers without “a history of abuse” can be offered a returnless resolution, the company said. If the shopper making a return is deemed ineligible, the item may still be sent to an Amazon fulfillment center as normal.
Dive Insight:
Amazon aims for Returnless Resolutions to increase customer convenience while providing sellers with a more cost-efficient way of dealing with returns. The program could be particularly convenient for international sellers and businesses with low-cost items, Gopal Pillai, Amazon VP of worldwide returns and recommerce, said in a separate post about Returnless Resolutions.
There are no program fees associated with Returnless Resolutions, and tapping into the program allows businesses to avoid returns-related charges levied by Amazon. The company is raising its fee structure as return logistics costs grow.
For example, the company expanded its returns processing fee on June 1 for products with high return rates, excluding apparel and shoes. Amazon said the charge covers the operational costs of returns while reducing waste.
Amazon is one of many companies rolling out “keep it” returns options that cut out the often-expensive reverse logistics process entirely. This tactic is particularly common for lower-value items, according to a 2023 report from goTRG, a returns management solutions provider.
Walmart Marketplace, the retail giant’s e-commerce platform, also gives sellers the ability to allow customers to keep their items and receive a full refund. Meanwhile, other retailers are charging returns fees or implementing stricter policies to cover costs.