Amazon’s new refunds policy will ‘crush’ small businesses, outraged sellers say
Buyers will no longer need to contact the seller before sending an item back, and merchants won’t have the opportunity to communicate with customers
By Ari Levy
Amazon sellers are up in arms over a new returns policy that will make it easier for consumers to send back items at the merchant’s expense.
Marketplace sellers who ship products from their home, garage or warehouse — rather than using Amazon’s facilities — were told this week by email that starting Oct. 2, items they sell will be “automatically authorised” for return.
That means a buyer will no longer need to contact the seller before sending an item back, and the merchant won’t have the opportunity to communicate with the customer. If a consumer is returning an electronic device because it’s difficult to use, for example, the seller won’t be able to offer help before being forced to pay a refund.
“Customers will be able to print a prepaid return shipping label via the Online Return Center instantly,” the email said.
Additionally, Amazon said that it’s introducing “returnless refunds,” a feature that the company said is “highly requested by sellers.” The change enables sellers to offer a refund without taking back an item that may be expensive to ship and hard to resell.
A third-party seller forwarded the email to CNBC and said these policies “will totally crush small businesses that fulfill their own orders.”