What Does Amazon Do With Returns In 2022? (Full Guide)
When you return an item you bought on Amazon, you may not think much about where it goes after you drop it at the post office. But returned products take quite a journey behind the scenes through Amazon‘s vast fulfillment network.
In 2022, most Amazon returns don‘t go back on the shelf for resale to other customers. Instead, the majority of returns get liquidated in bulk and resold through secondary markets.
This guide will walk you through exactly what happens when you return an item to Amazon. You‘ll learn about Amazon‘s return policies, where returned products go, why Amazon chooses to liquidate, and how you can find discounted deals on liquidated Amazon merchandise.
Whether you‘re an Amazon seller looking to understand returns better or a savvy shopper hoping to grab Amazon deals, read on for a full overview of Amazon‘s return and liquidation operations.
How Does The Amazon Return Process Work?
When you request a return on Amazon, here are the typical steps your item goes through:
Initiate return request: Amazon offers free returns within 30 days on most items. You simply log in to your account, select return, print a prepaid shipping label, and drop off the package.
Return transit: Amazon asks that you ship returns back within 25 days. Returns then make their way back to one of Amazon‘s many return processing centers.
Item checked in: Once your return arrives, Amazon scans and checks it for any damage or missing parts, according to Chris Dunne of Fab Finds Boutique, an Amazon seller since 2015.
Issue refund: Within a few business days after your return is checked in, you‘ll see the refund issued back to your original payment method.
Determine disposition: At this point, Amazon decides whether the returned item can be resold as-is, needs repackaging, or should be liquidated in bulk.
Route for resale: Lightly used returns in like new condition may get sent to Amazon Warehouse deals. Anything else typically gets palletized for liquidation.
Now let‘s look closer at the two paths returned products take once received by Amazon.
Where Do Returned Amazon Products Go?
Back to Amazon Warehouse
If a returned item is still in great shape, it may head to Amazon Warehouse to be resold at a discount.
Amazon Warehouse offers deals on used, open box, or damaged package items that are still in working condition.
Returns are expertly inspected and rated as "Like New," "Very Good," "Good," or "Acceptable" to indicate any imperfections.
According to Chris Dunne of Fab Finds Boutique, only around 10-15% of his returns can be resold through Amazon Warehouse if they come back undamaged.
Shoppers can find savings from 20-50% off compared to new condition prices when buying Amazon Warehouse items.
So if you don‘t mind an open box or used condition for items like electronics, home goods, toys, books, or clothing, Amazon Warehouse is worth browsing for major discounts. Just pay attention to the condition rating so you know what you‘re getting.
Sold to Liquidators in Bulk
The majority of Amazon returns don‘t meet the bar for resale on Amazon Warehouse. Instead, these items are palletized and sold to liquidators in bulk.
Amazon sells truckloads of returns for pennies on the dollar to liquidation companies.
Liquidators like Liquidation.com, Direct Liquidation, and Bulq purchase Amazon return pallets sight unseen.
They then resell the inventory to other businesses or individual consumers, usually through online marketplaces.
It‘s more cost effective for Amazon to liquidate returns than try to process each individual item.
Liquidating allows Amazon to quickly free up warehouse space taken up by returns.
Amazon recoups some losses on returns through their bulk liquidation programs.
For small sellers like Chris Dunne, having Amazon handle liquidation of returns is a huge benefit. "It would take an incredible amount of effort to cost-effectively process each return for resale ourselves," he explains.
What Kind Of Items Are Returned on Amazon?
You may be wondering – what kinds of items do people commonly return to Amazon?
Pretty much anything you buy on Amazon within their 30 day policy is eligible for return. According to Scott Voelker, an Amazon seller since 2001, here are some of the most returned product categories:
| Product Category | Estimated Return Rate |
|---|---|
| Clothing, Shoes & Accessories | Up to 40% |
| Jewelry | 35% |
| Beauty & Health | 20-30% |
| Cell Phones | 15-20% |
| Home, Kitchen & Dining | 10-15% |
| CDs, DVDs, & Books | 10-15% |
| Toys | 10-15% |
| Lawn & Garden | 10-12% |
As you can see, apparel and jewelry have the highest likelihood of being sent back by customers. On the flip side, consumables like grocery items tend to have below average return rates given their perishable nature.
No matter the product, anything purchased on Amazon within 30 days is eligible for free returns, with some exceptions for hazardous items.
Why Does Amazon Liquidate Returned Products?
With millions of packages handled by Amazon daily, it would be impossible to efficiently process each customer return individually to try to resell them.
That‘s why liquidating returned items in bulk makes the most sense operationally and financially for Amazon.
Benefits of Liquidating Returns for Amazon
- Frees up warehouse space quickly by removing returns
- Reduces operational costs of individually checking each item
- Allows Amazon to recover some losses on returns
- Third party liquidators handle process of reselling
- Still gives returned items second life with new buyers
Amazon seller Scott Voelker explains why liquidation is so integral to managing returns:
"Amazon prioritizes getting returns off their hands as fast as possible. Checking each item would create bottlenecks. Liquidating pallets simplifies the returns process so Amazon can focus resources on their core retail operations."
Why Sellers Prefer Amazon Handling Liquidation
For marketplace sellers, having Amazon liquidate returns in bulk is much preferred compared to getting individual returns shipped back.
Chris Dunne of Fab Finds Boutique explains, "We simply don‘t have the staff or space to cost-effectively process returns piece by piece. Amazon‘s liquidation programs are a lifesaver."
Benefits for sellers when Amazon liquidates returns:
- Saves time and overhead of checking each return
- Allows sellers to focus energy on sales, not returns
- Amazon‘s scale nets higher recovery value than individual liquidation
- Streamlined disposition process through FBA
So liquidating returns is truly a win-win – Amazon preserves resources and sellers avoid headaches.
Are Returned Products On Amazon Warehouse A Good Deal?
If you don‘t mind buying used or open box items, Amazon Warehouse offers an excellent opportunity to save money.
Amazon puts returned products that meet their quality standards for resale on Amazon Warehouse at heavily discounted prices.
Here are just some benefits of shopping Amazon Warehouse deals:
- Items discounted 20-50% cheaper than new
- Huge selection with frequent inventory updates
- Amazon‘s standard 30-day returns policy
- All items expertly inspected for flaws
- Condition clearly rated so you know what you‘re getting
- The same Amazon perks like fast shipping and customer service
Amazon Warehouse has grown rapidly and now accounts for over 1% of Amazon‘s $386 billion in annual sales. Chris Dunne frequently browses Amazon Warehouse himself to find bargains.
"If you take the time to hunt for the real steals, you can get amazing deals on products that are still in great shape. It‘s one of my favorite parts of Amazon," he says.
Just be sure to check the condition rating so you don‘t end up with an item that‘s more worn than you expected. But with Amazon‘s return policy, you can simply send it back if unhappy – one more reason Amazon Warehouse deals are worth exploring to save money.
Conclusion
When you return an item to Amazon these days, there‘s a good chance it will end up discounted somewhere down the liquidation pipeline rather than right back on Amazon‘s shelves.
Understanding this return and liquidation process helps both Amazon sellers manage inventory efficiently and savvy shoppers source great deals on pre-owned items.
Amazon‘s generous 30 day returns policy certainly makes it easy as a customer to get your money back if you change your mind about a purchase.
But now you know just how complex the system on the back end really is to handle millions of returns and keep Amazon running smoothly. So next time you send something back to Amazon, ponder for a moment the lengthy journey it will take before arriving in the hands of its next owner.
