How Amazon Plans to Fix Its Massive Returns Problem

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How Amazon Plans to Fix Its Massive Returns Problem
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U.S. returns generate 16 million metric tons of carbon emissions during their complicated reverse journey and up to 5.8 billion pounds of landfill waste each year, according to returns solution provider Optoro.

program for Prime members designed to make returns for clothes even easier, with return labels already included in the box. On the extreme end of easy returns, Amazon is increasingly allowing customers to keep some"returned" items while still refunding them.

"If I tell you to keep the product, instead of counting the cost and the carbon effect of taking it back, I look better as a company, don't I?" said Tony Sciarrotta, executive director of the Reverse Logistics Association."Let's let the people keep it and then it doesn't count against us.

— nearly a third of all net sales. That's up from $119 billion in 2020. Returns factor into these costs, so anything Amazon can do to lower those costs will help the company's bottom line. "They're going to do it for their own self-interests, although they'll couch it in the name of saving the planet," Cohen said."But at the end of the day, their action is going to be based upon the economics of what we're seeing."

To that end, in 2019 Amazon launched a donation program that allows U.S. sellers to automatically donate excess and returned goods to a network of 100,000 local charities through a partnership with nonprofit network

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