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Amazon Returns Will Cost Some Shoppers

If customers choose to return to UPS instead of a closer location, they may be charged a $1 fee.

Free Amazon returns are going away for some shoppers. The e-commerce giant has started charging shoppers for some returns at UPS locations. For example, if a customer lives closer to a free drop-off site like an Amazon Fresh store, Kohl’s or Whole Foods but returns a purchase to a UPS store instead, they may be charged a $1 fee. The fee will be deducted from any customer refunds.

“We offer convenient, easy returns to Amazon customers, with one or more options for label-free, box-free returns at no cost. We always offer a free option for customers to return their item – if a customer would prefer to return their item at a UPS Store when there is a free option closer to their delivery address, a very small amount of customers may incur a $1 fee,” Amazon said in an email to us yesterday. 

In an email to Subscription Insider, the spokesperson confirmed that the return fees apply to all Amazon customers, including Prime members. According to BestLife, the fee may also apply when an item is returned for specific reasons like “changed mind” or “accidentally ordered.”

A change from Dec. 2022 policy

This new policy is a departure from Amazon’s return policy as of December 29, 2022. On that date, Amazon shared a blog post that said customers could choose to return eligible items free of charge at more than 4,768 UPS Stores nationwide. Amazon said that free, no-box returns are available at Amazon’s physical stores, Kohl’s, Whole foods Markets and UPS stores.

Amazon also said that most items fulfilled by Amazon qualify for a free return option. However, customers that select a packaged drop-off location may pay a fee, though the fee wasn’t specified.

“All return options will be clearly shown in the Returns Center to ensure customers can select the available option that best suits their needs,” Amazon said. “Customers can buy with confidence knowing Amazon has great selection, fast shipping, low prices, and easy, hassle-free returns.”

Discovered by a Reddit user

Amazon did not announce this news. Instead, it was found by a Reddit user, who noticed the $1 fee last week. Amazon was, however, prepared with a statement once the news broke.

Source: Reddit

Second fee increase this year

This is the second fee increase that Amazon has implemented this year. Most recently, they added fees to Amazon Fresh grocery deliveries. Starting February 28, Prime members who order groceries via Amazon Fresh will pay a $6.95 fee for orders between $50 to $100, and $3.95 for orders from $100 to $150. There will be no fees for orders over $150.00, reports Winsight Grocery. Previously, orders over $35 were not charged a delivery fee.

Insider Take

Considering the massive layoffs and major operational changes Amazon has made lately, this latest move is not a big surprise. They are cutting costs and raising revenue wherever they can, and this probably seemed like a no-brainer. We understand the need to make such a change, but more transparency would have served Amazon well. If this will only impact a very small number of customers, why not be up front about it and explain why this fee is needed – to offset costs, for convenience, to steer customers toward partners like Kohl’s, etc.? Instead, they’ve annoyed some customers, including Prime members who don’t fare any better than other Amazon customers. The potential loss of business is not significant enough for Amazon to reverse its decision, but hopefully the company will think twice and be more transparent about fee increases in the future.

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