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IMO it's definitely exaggerated. If you're selling through Fulfillment by Amazon (as I did for years), the merchant is charged for the return shipping cost, whi
by CodeWriter23 6y ago
IMO it's definitely exaggerated. If you're selling through Fulfillment by Amazon (as I did for years), the merchant is charged for the return shipping cost, which is often UPS Retail Pricing.
Considering the inbound shipping costs to the fulfillment center, the storage and handling costs, hard cost of the finished good, the cost of returning the item from Amazon to the merchant if it is deemed to no longer be "New" (or the choice by the merchant to destroy) plus Amazon's commission of 15-20% depending on the item category, a 30-40% return rate would make one's business unviable at best and bankrupt at worst.
- an_opabinia 6y ago> a 30-40% return rate would make one's business unviable at best and bankrupt at worst. Amazon's retail business has poor profitability.
- CodeWriter23 6y ago"Amazon's" Retail Business is great. They have third parties supply most of the inventory and take most of the risk. And then they collect the metrics and make their own knock-offs of the clear winners.