Apr. 14th, 2022

walkitout: (Default)
https://www.cnbc.com/2022/04/10/how-amazon-plans-to-fix-its-massive-returns-problem.html

Interesting article about reverse logistics, mentioning several companies and nonprofits involved with Amazon’s reverse logistics.

Recently, I ordered a pound of Frontier powdered ginger root (“ground ginger”), but I received a pound of burdock root instead (same manufacturer, and with the manufacturer label clear and presumably correct — I did not open it, because I could feel it wasn’t powdered anything). The returns process indicated I did not need to return it AND this time they did not require a photo (which they have in the past for example when mayo arrived separated).

I had already heard about nonprofits working with online commerce operations to try to redirect returns to donations and other options, rather than getting landfilled or burned for energy or whatever; some of those are named in this article as well.

It’s nice to see coverage of reverse logistics. I’m glad people are thinking about reverse logistics. I do not think the solution is to charge people for shipping things back. For one thing, sometimes the error is on the seller’s part. I think the solution is to continually improve descriptions and create better pathways so that whenever possible, people get what they are expecting and, when things do breakdown, the best next step is apparent and readily usable.

This article describes how a Baltimore Amazon fulfillment center uses random stowing, robots, optical scanning and other technology to keep workers safe and productive. It draws connections to how these strategies could also be used for reverse logistics. It is from 2019 (I think):

https://consumerreturns.wbresearch.com/blog/amazon-reverse-logistics-warehouses-strategy

Googling found me this youtube:

https://youtu.be/1z4Nrgs6iV4

This young, very white, quite appealing couple bought (and picked up using their own vehicle, to save on shipping) 2 liquidation pallets with Amazon returns. It took them about a month, but they made their money back, and about the same again. They have some experience flipping things online. This suggests to me that liquidating returns by selling them to randos who think they can make money on them is a plausible way to direct returned product to customers who will make use of the item.

This is a decent value chain.

FBA has at various points in time offered sellers some choices for what to do with inventory that is not moving: dispose, liquidate, return, etc. Also, FBA has options for returns that include grade and resell as used. Obviously, there are fees for everything, including continuing to keep it at amazon, or having it returned to the seller, so options that are marginally better for the would-be seller and the environment are nice.

https://www.mmh.com/article/can_reverse_logistics_advance_your_esg_goals

This is a somewhat amazing organization EALgreen that takes excess … stuff and directs it to worthy channels if it does not meet their core area, which is supplying colleges and universities with needed … stuff at very, very low prices. The universities and colleges then deduct the difference between what they paid for the item and what they would have paid for the item in the normal course of business from the tuition of Worthy Students. It is convoluted and somewhat delightful.

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