Online retailer Amazon has started to display warnings about products that are frequently returned in its American webshop. This way, Amazon wants to encourage both customers and sellers to make better choices.
The cost of free returns
During the Covid pandemic, online retailers saw a record number of returns and that number still remains higher than before the pandemic, The Verge reports. At Amazon, returning a product is usually free for customers, leaving the retailer with the high cost of managing returns.
With its new warning labels, the online giant wants to encourage customers to pay more attention to product information and reviews. For example, a product with such a warning label, even though it is covered with positive reviews, should raise suspicion.
The Amazon platform is clearly struggling to combat counterfeit and substandard products, which are often accompanied by a mass of false reviews. Sellers of these products are therefore encouraged by the label to review their offerings.
The initiative is currently being implemented in the United States. It is not yet known whether it will be extended to Europe.
