Are The Days of Free Returns with Amazon Over?

And the implications for businesses and customers alike.

Amazon has brought significant change to the retail industry by no longer offering universally free returns. As of this April, Amazon will be charging a $1 fee on some returns. 

Retail experts say that not only was this change predicted for some time, but that instituting return fees is going to be the trend in general for retail across the board. 

Free shipping and free returns have been used by businesses to grow their customer base. Customers enjoy the ease and lack of risk that comes with these free services. However, this has been unsustainable for many businesses that already run on narrow profit margins. Providing these services puts additional strain on smaller businesses in particular that are under pressure to compete with retail giants like Amazon. 

The new direction Amazon has taken with return fees sets a precedent that will impact customers and businesses alike. At this time, it’s uncertain exactly how consumer behavior will be altered, but it will be interesting to see how it plays out over the months to come. It’s also uncertain to what degree this will influence other businesses, but it certainly marks a trend that other businesses may be relieved to follow. 

On one hand, as a customer, it’s beneficial to have the convenience of free returns, especially if you are unsure about a business and/or product. This allows customers to avoid the majority of the risk and inconvenience associated with returning a product. On the other hand, as a business, it’s a significant burden to not only lose out on any profit, but to end up with negative profit due to the business having to pay the return fees. 

Do you think it’s fair for businesses to pay for free shipping and returns? Or, do you think it's reasonable for businesses to charge customers for shipping and returns? Is there an ideal middle ground that can be achieved? 

Let us know what you think in the comments below!