Amazon is going to give third-party companies selling stuff through the web giant the ability to resell returned products. That way Amazon wants to fight waste. Millions of products returned are being destroyed because it‘s cheaper than re-offering them again, a UK TV channel unveiled in June.
Amazon announced the new plans in a blog post. In addition to the reselling option, there will also be an option to engage with buyers of used products. The plan is first to be rolled out in the United States, Germany, France, Italy, Spain and the United Kingdom. Nothing has been announced about the Netherlands, which has been an Amazon sorting center since last month.
The UK has 24 Amazon distribution centres. At the end of June, ITV revealed that 100,000 products are being destroyed in one Scottish location per week alone, from vacuum cleaners to smart TVs. Customers have returned the products, but there is often nothing wrong with the products. However, it takes a lot of effort to check the condition of the product, repack it and sell it again.
Pay for Storage
Unsold inventory will also be destroyed. That has to do with Amazon’s business model. In addition to its own products, Amazon.com also sells third-party company products. Those products are in Amazon distribution centers. The external companies pay for storage. At some point, it may be cheaper to destroy the products than continue to pay for storage in the distribution center.
An estimated 10 to 20 percent of the parcels people order return to an online store. That costs merchants a lot of money.