E-commerce giant Amazon has begun labeling some products with a “frequently returned product” warning in an effort to reduce costs associated with processing returns, which have increased during the pandemic.

The pandemic has changed the way we shop. The closure of physical stores and the need for social distancing have led to an increase in online purchases. However, it has also led to an increase in returns. According to the National Federation of American Merchants (NRF), online returns increased to 18% in 2020, up from 8.1% in 2019. While there was a slight decline in 2021, it is still remain at high levels, representing a significant cost to retailers.

Amazon’s new label

In an attempt to reduce the costs associated with returns, Amazon has begun labeling some products with the “frequently returned product” warning. The tag is not visible to all users and only appears on some products sold by third parties and fulfilled by Amazon. The company hopes this tag will encourage sellers to modify their products or listings to reduce the number of returns.

Tailored Amazon Reactions

The measure has generated mixed reactions. On the one hand, some sellers have praised the move, arguing that it can help reduce returns and improve product quality. On the other hand, some consumers have criticized the move, arguing that it may negatively affect small businesses that rely on Amazon to sell their products. Additionally, there have been concerns that the label could damage a product’s reputation and affect its visibility on Amazon’s website.

The future of online returns

Amazon’s move is just one of many ways that retailers are trying to tackle the problem of online returns. Some retailers are offering discounts to customers who choose to keep products rather than return them, while others are investing in technology to improve the accuracy of product descriptions and reduce the number of returns. However, the issue of returns remains a challenge for the industry, and is likely to continue to be a focus area for retailers for the foreseeable future.