Question: What’s the biggest pain point for Amazon sellers?
Answer: Amazon Customer Returns
If you sit down with 100 of the top sellers on Amazon and ask them what their biggest pain point for selling products on Amazon is? The answer is clear, managing customer returns!
The reason customer returns are such a pain point for Amazon sellers is simple. Amazon has made it so easy for Amazon customers to return products for nearly any reason. Amazon views easy customer returns as a “Competitive Advantage” as they dominate the industry leader position for providing the best customer experience.
However, offering easy customer returns is a double-edged sword for Amazon sellers. On one side, you should sell more product if you offer the customer easy returns. On the other side, you’ll get more customer returns because it’s so easy and the cost of customer returns eat into your profits quickly.
Amazon FBA Increases the Cost of Customer Returns for Sellers
While customer returns is a cost burden for Amazon sellers already, with the use of Amazon’s FBA (Fulfillment by Amazon), the costs increase even more.
Let’s dive deeper into the math. Most Amazon sellers utilize Amazon’s FBA to fulfill the seller’s products because their products will ship quicker & cheaper than if the seller shipped the product themselves. Again, in theory, using FBA should increase sales but it also increases customer returns.
The cost of a customer return is higher for Amazon sellers when shipped through Amazon FBA because of the “Extra handling” that’ll be required to recover the value of the product returned. For example, the customer will ship the returned product back to an Amazon FBA warehouse and get their refund. The Amazon FBA warehouse will receive and inspect the returned product and place it back into inventory as a “non-selleable” item in most cases. This “non-sellable” item will eventually need to be shipped back to the seller at the seller’s expense. In addition to the extra shipping cost, Amazon will charge additional “Handling fees” to process the additional shipment back to the Amazon seller.
Time is money. Don’t forget the extra “Cost of time” as well. The extra time required to process the Amazon customer return is an additional burden on the seller’s cash-flow.
What do most Amazon sellers do with customer returns?
Today, most Amazon sellers consider the cost of customer returns as simply a “Cost of doing business on Amazon”. Is this extra cost of doing business on Amazon 5%, 25% or more? That really depends on the rate of return, cost of the product and ability to have the product re-sold without any additional handling. So each case is different.
There’s a new solution to customer returns and Amazon sellers are quickly adopting it!
The new and exciting solution to answer the problem of Amazon customer returns is back-track. back-track is a service specifically designed for Amazon sellers to help them recover their lost profits from Amazon customer returns.
back-track helps Amazon sellers recover their profits by reNewing, reBuilding or rePairing their Amazon customer returns so their products are just like new and can then be reSold for a profit once again. back-track specializes in higher value consumer electronics where the cost of a customer return is greater and the profits from reNewing the product is also greater.
The process is simple. You have your non-selleable customer returns shipped to the back-track facility. Back-track inspects the package, renews or repairs the package as needed and prepares the package to be sent back to Amazon FBA. You can then sell this product once again and recover your lost profits.
Amazon sellers are quickly jumping on board with back-track. If you’d like back-track to give you a quick and easy quote for reNewing or rePairing your customer returns, simply send us a list/link of the products you’d like a quote (contact us) and we’ll get back to you quickly.