Later ITV News found that Amazon was destroying brand new stocks in the UK instead of reselling them announced changes in the way it deals with returned and unsold products. In a statement, Amazon says it is launching two programs for businesses using the retail giant’s infrastructure. These programs: FBA (Fulfilled by Amazon) Grade and Resell, as well as FBA Liquidations, will allow third-party vendors to list returned stocks on their product pages.
With the first, when the product is returned to Amazon, the company will assess its condition, and then list it again as a used product. Amazon added that vendors can set the price based on the ratings Amazon gives, and that they can control most of the process themselves. Meanwhile, FBA Liquidations allows retailers to send returned or excess stock of products to wholesalers directly from Amazon’s logistics warehouses. They can liaise with Amazon’s resale partners and try, in the company’s corporate words, to “recoup some of the inventory costs.”
The announcement comes shortly after a controversial report from ITV News, which claimed that trucks of brand new products were marked for destruction. An anonymous adviser told reporters at the time that the process did not spare even high-end products like MacBook units and, despite what is currently happening, sealed COVID face masks. As The Hill he explained, the consequences of that report have caused concern in the UK, among Labor demanding an explanation for the evidence adduced. At the time, Amazon said “no items are sent to landfills,” but as a last resort, some are sent for “energy recovery.”
Libby Johnson McKee, director of Amazon Returns, ReCommerce and Sustainability, said the new initiatives are one example of how Amazon is trying to “ensure products are sold on Amazon […] make good use of it and don’t become a waste. McKee added that the policies will help reduce costs and help companies using Amazon’s fulfillment platform to grow their business. FBA Grade and Resell are now available in the UK, while other European countries will appear online next year. Meanwhile, FBA Liquidations is available in the U.S. and other European countries, but is coming to the UK in August.
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