Amazon Forces Sellers to Foot the Bill for Fashion Returns

by: COVID-19

Eh heh heh heh heh. Let's see eBay follow Big Bro's footsteps now.

by: mjr55

Um.....this was required in other categories years ago.

Pretty pissed that clothing sellers have been getting off scott-free on this still. Join the club.

Amazon's return policies are 100x worse than Ebay's could ever be for the seller.  

by: Snapped

“… Some sellers said they would have to raise their prices as a result of the higher costs they'd be forced to absorb..”

Back in the ‘day’, which was not so many days ago, buying on-line had the built-in appeal of being much cheaper than buying at a B&M.  Items otherwise competing could be offered ‘at discount’ because the seller had a much smaller CODB overhead than the store, which had to cover storage, extra labor, physical infrastructure, and a liberally forgiving, no questions ‘returns’ policy.  

Fact is, buyers too, were willing to expect ‘less’ (instant gratification) because they were paying less (relatively), receiving more (convenience factor), and thus willing to assume some of the ‘risk’ inherent to ‘hands free’ buying as conditions for that discount.  Within reason - SNAD and (actual) INR of course, was as it should be no less inexcusable.  

Now that buyers have been given the virtual keys to the ‘store’, that margin ‘difference’ upon which to offer such ‘savings’ has evaporated.  In fact, with every venue ‘enhancement’, it’s becoming increasingly more likely it will cost more to sell a given item online than it would be from a store window.  Not because the seller is making it more expensive, but because the venue is.

So unless a seller has is willing to cut their already stressed margin, in the end, venue policy changes that increase CODB will increase cost to the buyer.  Up to the point where the venue causing this need then also dictates the ‘ceiling’, which the buyer now reasonably expects ‘more’ from, due to those increases.

It’s a death spiral.  Masked by an intentional lack of concern for who pays the bills, as long as the wolves on the street get their meat.  And that’s how to turn a bull market into a bull(redacted) market.

by: RKTOYS

Exactly why I stopped selling online.  The venues just keep grabbing more control and making it more expensive to do business.

by: Rexford

Let the wear and returns begin.  Note to self:  Do not list clothing items on Amazon.

I can just see these entitled buyers ordering 5+ garments and essentially using Amazon as a dressing room.  Then returning them all.

If you raise your prices to make up the difference the bots will take you down.

by: Chicago48

I try as much as possible to "ship to store" that bypasses the shipping fees.  For example Target and Home Depot have "ship to store" or "pickup in store".  That's the only way to bypass ecommerce "shipping" fees.  And it's easy to return.  I sell fashion on AMZ and will have to do one of several things:  1) buy cheaper; 2) raise prices to compete against the lowest price; or 3) stop selling on AMZ.
And Snapped is right:  The consumer is being hit hard more and more with these "fees" whether shipping, surcharges, taxes, storage fees, etc.  And IMO we will see a slow down in ecommerce sales -- except on Facebook Mktplace which seems to be enjoying fame.

by: Stone Cutter

What a bummer. I expect this type of policy change will soon come around for Etsy, too. As an artisan jeweler, I'm close to being done with online selling because it's no longer the joy it use to be.

Amazons' cash cow is now it's Cloud Division....profit margins for their retail division continue to shrink as more online competition unfolds.

I just listened to a retail analyst on CNBC this week...It's becoming common place for buyers to purchase multiple items to then return the items they don't want. The example I heard was for Nike, who has no problems with "returns" while still making profits when selling in volume..

by: Chicago48

CNBC this week...It's becoming common place for buyers to purchase multiple items to then return the items they don't want. The example I heard was for Nike, who has no problems with "returns" while still making profits when selling in volume
^^
That's why I like Merc and Posh.  Buyer has 3 days to return for a refund; or 7 days to return for a refund.  And it has to be "not as described" and not "I changed my mind".  And Posh doesn't accept just any excuse for a return.  Posh is  BAAAD.