New Amazon policy. What does this mean for you guys selling on Amazon?

[BellaPippin]

Amazon's new refunds policy will 'crush' small businesses, outraged sellers say

 

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[InspireHD]

I was actually on one side of this yesterday. I ordered a product that came in black and silver and wanted it in black. I'm fairly certain I selected black, the order picture showed the black model, it gave me a discount for ordering it, and I checked out. When I got it, it was silver.

I talked directly to Amazon chat and told them I really just wanted to exchange it for black and would do a return and replace. The person told me that I selected the silver because the black was actually a dollar more and my order was the dollar-less item. I told them it could have been my fault, but the order picture showed that it was black.

After a couple minutes, they told me that there was no option for a return and replace so they would just refund my money and I could keep the silver. I was not expecting that! And I even clarified if they wanted me to return it first, which they said no.

I'm still going to order the black because I want the black, but I was just surprised that Amazon offered the refund. As a consumer, I was surprised and can't really turn that offer down. I'm still going to order the black so in some way they will still get my money, but I can't imagine the effect it will have on the seller.

 

[Under-Dog]

After a couple minutes, they told me that there was no option for a return and replace so they would just refund my money and I could keep the silver. I was not expecting that! And I even clarified if they wanted me to return it first, which they said no.

I'm still going to order the black because I want the black, but I was just surprised that Amazon offered the refund. As a consumer, I was surprised and can't really turn that offer down.

Amazon has some of the best customer service and their A-Z guarantee which attracts so many consumers. Some sellers decide to just let you keep the item since it would cost more to have you ship it back and what not. I've done this a few times especially with lower price items.


The downside with the sellers is a lot of consumers take advantage of this, the other day a customer made a return sent the item back to amazon who then sent it back to me turns out the item was trashed broken into bits. I called amazon and they reimbursed me for the loss.

I think this policy does open the door for those dishonest customers but also boosts amazon customer service which they thrive on making more people want to shop on amazon. This will have some impact on sellers but that's the downfall of working with amazon you have no control which MJ preaches CONTROL of your business

 

[Boo Blizzi]

I just read that message. Automatic returns and/or paying for return shipping will crush the little guy. He is already is getting hammered with fees by Amazon.

 

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[Vigilante]

This will be the final death blow to drop shipping.

 

[amp0193]

Amazon's new refunds policy will 'crush' small businesses, outraged sellers say

It's just a clickbait title.

It's just holding FBM sellers to the same Amazon customer service standards as FBA sellers.

Not a huge deal. It's not going to crush anyone.

 

[Boo Blizzi]

It's just a clickbait title.

It's just holding FBM sellers to the same Amazon customer service standards as FBA sellers.

Not a huge deal. It's not going to crush anyone.

Yup. Just re-read the email again and highlighted the key phrase.

"Starting October 2, 2017, returns of items that you fulfill and that fall within the Amazon returns policy will be automatically authorized."

OK. The sky is not falling. Nothing to see here folks. Move along.

 

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[MidwestLandlord]

Intentional tactic to force self-fulfilled sellers to use FBA?

 

[amp0193]

Intentional tactic to force self-fulfilled sellers to use FBA?

My guess is push-back from too many customer complaints about a differing experience with FBM sellers vs. FBA sellers.

This is bringing consistency to the platform, and makes sense.

 

[million$$$smile]

This will be the final death blow to drop shipping.

I am not sure I completely agree wth this statement.

I believe it COULD be a possible death blow to certain categories for sellers that utilize FBM, but clearly not all.

I feel any products that are multi variant would have a huge negative impact UNLESS it had an exemption as stated in their policy.

An example would be the clothing, shoes and jewelry category.
I could see that as a huge detriment for FBM sellers if they are dropshipping those products because returns are much higher due to the fact of sizing or color issues. But many other categories where there are no variants or very few shouldn't have much of an impact even though they are dropshipped, UNLESS the product is inferior in the first place.

If a merchant is already selling a inferior product or the description is incomplete, or if one is already having a high return rate than there will be potential issues making the product unprofitable.

Case in point:
We sell over 3500 products on Amazon. Everything from tools to footwear and everything in between.

98% of these products are fulfilled by us. We have very little returns EXCEPT in footwear.

This category is a major problem due to the fact that with so many variants along with manufacturers sizing their footwear differently, ie offshore compared to USA made or widths etc. It is a major issue.
Our return rate on footwear has been as high as 5% due to wrong sizing, uncomfortable shoes, etc.

Luckily, we obtain most of these locally and ship them but some we do have dropshipped. Of course, these are sent back to us (even though dropshipped as we are the "supplier") but it does incur additional expense due to dropshipping & return fees from the manufacturer.

I'll have to assess between now and October when Amazon implements this new policy whether it is worth it to remain in the category. Perhaps many of my competitors will discontinue and allow me to raise prices to offset the new policy. Who knows?

Other areas that we dropship hasn't been an issue with returns so I would guess that we would continue.

Luckily I have other venues to move returned merchandise otherwise I would not be able to continue. That is critical. Returned product has to move out the door as much as 'new' products.

I think there is handwriting on the wall. Amazon is going after manufacturers, to see if they can be their one-stop distribution point and cut out the small time seller/distributor, eventually even larger distributors.

I have a feeling, just a gut feeling that eventually this will create another opportunity for another marketplace to be created.

I believe it can happen. Something that is DECENTRALIZED, peer to peer, aka blockchain? I would only hope.
AZ's fees are too exorbitant and a bit greedy in my opinion.

It definitely is becoming less fun to market wares on Amazon...

 

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[MiguelHammond10]

spent the whole day watching JB interviews. If I wasn't a believer before, I am now.

 

[amp0193]

I believe it can happen. Something that is DECENTRALIZED, peer to peer, aka blockchain? I would only hope.
AZ's fees are too exorbitant and a bit greedy in my opinion.

This is an interesting thought. I could see it happening.