Product return rates can range between 20% and 40%, so why is Amazon making it easier for consumers to return their purchases?
Many FBM sellers are accusing Amazon of turning to the Dark Side of the Force following the announcement that they would be making RFS (Refund at First Scan) a standard feature of all sellers who use the Prepaid Return Label Program on May the Fourth.
The RFS program is familiar to FBA sellers, but has been only an option to those fulfilling merchandise themselves. Through the program, customers will receive a refund after the first carrier scan when they ship their return using an Amazon prepaid label.
This increases liability for FBM sellers because they can’t inspect the contents of a returned package before the refund is credited.
They also argue that with return rates ranging between 20% and 40% (depending on the type of product), that the impact on their COGS is already too great.
So why would Amazon make it easier for consumers to return products?
It’s really as simple as that they are lightsaber-focused on the customer experience.
In response to Amazon’s bold, customer-focused strategies:
- Fast, free shipping became a standard of most companies selling online.
- Paid memberships were adopted to give consumers access to premium services.
- Looser return policies were adopted, which allowed consumers to try products like clothing knowing returns were easy.
Some Amazon sellers are griping about this change, and some are adapting. Instead of concentrating on products that have a low barrier to entry, those who thrive with RFS are those who can focus on quality products that won’t be returned and aren’t in high-risk categories (like clothing).
If you want some force-sensitive strategies for reducing your return rate, Helium 10 has your back.
May the Fourth be with you!
