Summary:

• An email was sent by Amazon to its sellers this week, announcing an updated refund policy. 
• The email details that merchants who ship products on their own are also now subject to the same guidelines that Amazon follows on their own shipped products. 
• Sellers are voicing their dissatisfaction on online forums, with some commenting, “Is this a joke?”

Amazon (NASDAQ:$AMZN) sellers are lost for words, as new return policies now allow customers to easily return their items at the expense of the merchant.

In the email, Amazon detailed that sellers on Amazon’s marketplace who ship products from their own homes, garages, or warehouses rather than using Amazon’s facilities, were told in the email that the items they sell will be “automatically authorized” for return starting Oct. 2nd.

This means that customers will no longer need to contact the vendor before sending products back. Although convenient for consumers, this also means that the merchant won’t have the opportunity to communicate with the customer. For example, if a consumer were to return an electronic device solely due to the fact that it’s difficult to use, the merchant would be unable to assist the customer before being forced to pay the refund.

“Customers will be able to print a prepaid return shipping label via the Online Return Center instantly,” the email clarified.

Amazon will also be rolling out “returnless refunds”, which is a feature that the company noted was “highly requested by sellers”. This allows vendors to issue refunds without taking the item back due to uneconomically high shipping expenses, or if the item is too difficult to resell.

According to CNBC, third-party retailers have forwarded them emails, quoting that the new policies  “will totally crush small businesses that fulfill their own orders.”

Various sellers have already taken to forums to express their dissatisfaction.

“Amazon is going to assume that a buyer would NEVER lie about the reason for the return so they don’t have to pay for it.”

Amazon sellers were furious with the new policy as a whole, but extra attention was directed to the “returnless refund” policy, as some merchants commented:

“In other words, customers get things from us for free! Is this a joke?”

“So, now, those `semi’ honest buyers are being encouraged to join the rest of the full fledged `scammers’ at our expense.”

Additionally, Amazon also charges premiums for the use of its return labels, thus forcing an unwanted service that merchants must accept.

There was hope for some sellers, however, as some merchants noted that Amazon is allowing them to exempt a certain number of items from automated returns. Amazon has not yet provided comments about the announcement of their new policies.

Jeff Bezos has built an empire on customer satisfaction, so it’s no surprise that his top priority is to appease Amazon customers, providing them with increasingly more products at lower prices and with greater efficiency. However, these improvements come at a cost for sellers who often rely on Amazon for business and to ultimately generate revenue.

Although at the expense of merchants, the latest policy changes aim to provide the same experience for customers regardless of whether the products are shipped directly from Amazon, or by third-party-merchants.

By starting their initiative in October, this allows Amazon enough time to have the process solidified before Cyber Monday sales and other important holiday spikes as well.

Featured Image: twitter