Amazon’s New Refund Policy Will Hurt Sellers

Published on: 03 Aug, 2017, Inc.(NASDAQ: AMZN) sellers are not happy after the company released an email that they would have to follow the same rules as Amazon’s return policy.

Amazon’s email read: “Amazon is simplifying the returns process on items fulfilled by sellers. Starting October 2, 2017, returns of items that you fulfill and that fall within the Amazon returns policy will be automatically authorized. Customers will be able to print a prepaid return shipping label via the Online Return Center instantly.”

This means that the customer can just simply return the product he or she purchased from the seller with basically no questions asked.

Sellers on Amazon had run into problems in the past with customers stating they don’t know how to use a product and sellers just simply email them back with instructions. Now, if a customer doesn’t know how to use a product, he or she can simply ask for a refund and return the product even before the seller can offer assistance.

To add onto that even more, Amazon introduced “returnless refunds”, where sellers give refunds without receiving the item back due to costliness or difficulty to ship.

Jeff Bezos, founder and CEO of Amazon, has always had a main goal of pleasing and satisfying the customer. With this, he hopes to increase customer service satisfaction.

“We hope these changes will reduce the effort required to manage your returns and decrease your customer Return Dissatisfaction Rate (RDR).” states the email.

Sellers flocked to online forums to post their dissatisfaction about the new policy Amazon has implemented.

“It proves that Amazon has no clue what the business issues are. Probably are result of the work of the same idiot who created the Return Dissatisfaction Rate (RDR) which provides better ratings for sellers with lots of returns than sellers who sell good products on well written catalog pages and provide excellent customer service, so they get few returns.” stated one seller on the Seller Central forum on Amazon.

“Another way for customers to abuse sellers. Of course they will learn very quickly to lie so that they get free returns. This happened on ebay as well.” another sell wrote on the forum.

It’s not only the problem with just simply returning items within a two day period of when the buyer asked, it also creates a shipping problem for sellers.

The policy also states that refunds will be shipped back via United Parcel Service, Inc. (NYSE: UPS), and the problem with that for some people is that they use P.O. boxes for returns, and UPS does not deliver to P.O. boxes.

Sellers have experienced in the past problems along similar lines of this new policy, which has led them to change to other sites such as eBay Inc (NASDAQ: EBAY).

Amazon wants to offer the same return and refund policy for customers whether it’s through Amazon itself or through third-party sellers.


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Marco Zhou



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