Many of us who shop on Amazon have grown accustomed to its extremely low-cost, hassle-free return process: if you’re unhappy with an item, send it back within 30 days — at no charge. A lot of customers simply drop off returns at their nearest UPS Store.
The issue is that returns have ballooned so much that they’re costing Amazon a significant sum. (Yes, Amazon is wealthy, but returns add up.) The company bears shipping expenses for all those returned products, and the cumulative cost is considerable.
To reduce expenses, Amazon will now impose a $1 fee for returns made at UPS locations — but only when a free alternative is located closer to where the order was delivered. Customers can still return Amazon purchases at no cost at Whole Foods, Kohl’s, or Amazon Fresh grocery stores.
Amazon owns Whole Foods and the Amazon Fresh outlets, and it maintains a partnership with Kohl’s.
In short, if a Whole Foods, Kohl’s, or Amazon Fresh store is nearer to your delivery address than your nearby UPS Store, you’ll likely want to use one of those free return locations. Otherwise, a $1 charge will apply per returned item.
Returns Have Risen Sharply
Why the change? Returns surged during the COVID lockdowns when online shopping spiked, and return rates have stayed relatively elevated since then.
This isn’t only an Amazon problem — it’s impacting the entire retail sector.
Across retail, shoppers returned 16.5% of purchases in 2022 — totaling $816 billion in merchandise, reports the National Retail Federation. That’s nearly identical to the prior year, when returns made up 16.6% of purchases.
The National Retail Federation notes that, on average, a retailer faces $165 million in returns for every $1 billion in sales.
Some stores have responded by imposing return fees, shortening return periods, or implementing both measures.
Amazon is minimizing the significance of this update, stressing that customers still have free return options available.
“We offer convenient, easy returns to Amazon customers, with one or more options for label-free, box-free returns at no cost,” the company said in a statement.
“We always provide a free option for customers to return their item. If a customer chooses to return their item at a UPS Store when a free alternative is closer to their delivery address, a very small number of customers may be charged a $1 fee.”
Ben Harrow (ben.harrow@example.com) is a senior writer at Savinly.
