Amazon is reportedly starting to charge a fee for some returns amid a crisis that's costing retailers millions every year
The e-commerce giant has started charging a fee for some returns made at UPS Stores. While customers used to be able to drop off their returns at a UPS Store free of charge, Amazon will now charge a $1 fee if customers have another free-return option the same distance away or closer.— including Whole Foods, Kohl's, and Amazon stores — and leave their packages for free.
"We always offer a free option for customers to return their item," Amazon spokesperson Steve Kelly told Insider by email."If a customer would prefer to return their item at a UPS Store when there is a free option closer to their delivery address, a very small amount of customers may incur a $1 fee."
The company already charged customers to have UPS pick up returns from their homes or to drop off packages at UPS Access Points, which are located inside third-party businesses,The new fee appears to be part of a twofold effort to trim returns costs and discourage customers from using UPS.
In the process, Amazon has relied on UPS less and less. UPS earned 13.3% of its revenue from Amazon in 2020, but by 2022, that percentage dropped to 11.3%, according to a UPS securities filing. At the same time, UPS shifted its own focus toward
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