In an initiative developed to help its marketplace members deal with return-related issues, Amazon is giving sellers that use its Fulfillment by Amazon operation flexible options, including resale, for managing product returns.
Recommerce is a larger consideration today as means of managing returns and associated costs, and it requires the ability to process and sell used goods to consumers. Amazon expanded the options available, including resale, to help marketplace sellers using its Fulfillment by Amazon operation to mitigate the rising costs of returns while making the operation potentially more attractive to sellers who use other shipping options.
Grade and Resell works with items handled by Amazon’s return centers and gives sellers a recommerce channel on Amazon for inventory sent back by a customer. Under Grade and Resell, Amazon inspects an item and generates a detailed description of its condition so consumers can make informed purchase decisions. Amazon has offered Grade and Resell to retail brands, and now it is offering it to all FBA sellers in the United States. The company has initiated a staged rollout, allowing it to test and tweak the process. Now, all FBA marketplace sellers can connect with Grade and Resell to recover value on returned inventory. At the same time, consumers can explore a greater selection of pre-owned and open-box products.
Amazon supports other options that can help marketplace sellers cope with returns.
In a preemptive approach to the issue of the return, Amazon developed the Product Support program. The function enables retail and FBA brands to provide customers with free product support on eligible items purchased, to help with product setup and operation and to address issues that require troubleshooting. Sellers can provide customers with manufacturer contact details and links to help videos and coordinate the replacement of missing or broken parts. In 2023, product support marketplace participants avoided the return of more than 11 million items in the U.S. and Europe by Amazon’s estimation, up 50% from 2022. This improves customer experience, benefits brands and reduces return shipments, Amazon asserted.
In cases where products cannot be resold for a variety of aesthetic, functional or demand reasons but still have life left, Amazon partners with the nonprofit organization Good360 to donate products to families and individuals in need through FBA Donations. Sellers using FBA can participate in the FBA Donations program and donate eligible goods.
Another program is Returnless Resolutions, which allows sellers in the U.S. to grant refunds without requiring the customer to return the item physically. The program can be a cost-efficient option for international sellers and marketplace participants that carry low-priced items, Amazon maintained.
At a time when returns have become a challenge for many retailers and vendors, and recommerce is gaining, Amazon is expanding its means of dealing with the reverse flow of goods and the associated costs as well as participating in the growing resale business.
