Riverbend Consulting

Having problems with Amazon? Let us solve them.

  • Home
  • Suspensions
    • Account Suspension
    • ASIN Suspension
  • Account Services
    • Account Health Check-Up
    • Seller Account Protection
    • Account Management
    • Reimbursements
    • Amazon Editorial Recommendations
  • Our Blog
  • About
    • About Us
    • Our Team
    • Testimonials
    • Referral Program

(877) 289-1017 Contact Us

+44-161-8508-269

MENU

Returns

Amazon’s dirtiest FBA secret: Used, nasty and broken returns

June 11, 2020 Leave a Comment

Third-party Amazon sellers should monitor returns carefully or risk buyer complaints

By: Lesley Hensell

Curling irons with someone else’s hair in them. Mouthwash with broken seals. Coffee makers with smelly old moldy coffee inside.

These are only a few of the disgusting surprises that FBA sellers have experienced. Why? Because Amazon’s FBA returns handling processes are – to put it kindly – lacking.

Amazon FBA returns
What happens when customers return items to FBA?

One reason buyers love Amazon is the friendly returns policy for FBA purchases. Amazon makes it easy for customers, who can take a look at their mail-order item and decide to send it on back.

Unfortunately, buyers don’t always return items in new condition. This might mean torn packaging, broken seals, or even used items. 

When an order is sent back to the FBA warehouse, Amazon personnel are supposed to inspect it carefully. They are charged with determining if the item is still in “new” condition. If so, it is placed into the seller’s fulfillable inventory. If not, it is placed in unfulfillable. A third possible scenario involves Amazon repackaging the item. This happens when the product is in new condition, but the packaging is not. Amazon reserves the right to repackage it and place it back into fulfillable inventory. (The setting that once allowed sellers to turn off repackaging has been taken away. Sorry, folks, you’re stuck with it.)

Amazon’s warehouse employees are graded on the number of transactions they conduct per hour. Human nature dictates that this leads to inaccuracy as employees try to meet or beat the required work level. Of course, quality naturally suffers, and items that should never be placed into fulfillable inventory are re-sold.

Another problem occurs when Amazon puts returns in fulfillable from categories that are supposed to be disposed of or not required to be mailed back to the warehouse. Supplements are a good example. These items should never be put back into fulfillable, but often are anyway.

What can 3P sellers do to protect themselves?

The most worrisome scenarios with bad returns involve products that a 3P seller stocks over the long term. Therefore, the higher volume you sell over time, the more potentially bad returns are sent back to the Amazon warehouse.

There are a few strategies that 3P sellers can employ to combat the problem:
  1. For private-label products, add a printed seal. Include language such as “if seal is broken, item is not new.” This seal is not for buyers. It’s for personnel on Amazon’s FBA returns processing teams. This way, they will be more likely to place an opened item into unfulfillable inventory.
  2. Sell down or sell through. For products you replenish, allow your stock to sell through. Alternatively, sell it down and then place a removal order for the remaining units. In the meantime, restock with a different SKU. This way, bad stock being resold multiple times will be removed from the FBA warehouse.

In conclusion, if you need help with your FBA strategies, don’t hesitate to contact Riverbend Consulting.  Let’s talk 877-289-1017 or visit our website.


Lesley HensellLesley is co-founder and co-owner of Riverbend Consulting, where she oversees the firm’s client services team. She leverages two decades as a small business consultant to advise clients on profitability and operational performance. Lesley has been an Amazon seller for almost a decade.

Filed Under: 3P, Amazon, ASIN, Customer Serivce, Quality Control, Returned Tagged With: 3P seller, Amazon, Amazon FBA, Amazon seller, Broken seals, Buyers, Complaints, Condition, Expired, Returns, Returns processing, Suspension, Used sold as new, Warehouse deal

Amazon’s repackaging service now mandatory for FBA returns

September 9, 2019 1 Comment

Sellers cannot turn off repackaging, but should turn off new “refurbishment” setting ASAP

By: Lesley Hensell

Amazon has recently (and quietly) eliminated third-party sellers’ ability to turn off the horrific “repackaging” settings for FBA returns. This means, Amazon’s repackaging service is now mandatory for FBA returns. In addition, the company has added an optional “refurbishment” service – which fortunately does include an opt- out for Amazon sellers.

Unfortunately, this terrible decision is likely to lead to additional complaints for good sellers, who will see customers complaint about:

  • Inauthentic
  • Counterfeit
  • Used sold as new/condition

Why will there be more complaints? Easy. FBA returns grading and repackaging are of extremely poor quality, and sellers will suffer as a result.

stack of boxes, repackaging

What are repackaging services?

Repackaging services apply to FBA returns. When a customer returns an item, the unit is evaluated by fulfillment center staff. These team members determine whether the item can be repackaged and resold, or if it should instead go into a seller’s unfulfillable inventory.

According to Seller Central, repackaging can include replacing a polybag, bubble-wrapping, or re-boxing. It can also include repackaging of branded and unbranded boxes and poly bags.
Why is this a problem? Let us count the ways:
  1. Used sold as new/condition. Amazon fulfillment center personnel do a flat-out terrible job at returns grading. They decide to re-sell items that should never be sent to customers. Examples from our clients include selling curling irons with hair in them, mouthwash without lids, multipacks of toothbrushes that were clearly opened, and supplements with broken safety seals. All of these mistakes can lead to complaints for used sold as new. In categories like grocery, or health and personal care, sellers can see their ASINs blocked for safety.
  2. Inauthentic. When customers receive merchandise in less-than-optimal condition, they sometimes complain that the item was “inauthentic.” This can lead to nightmares for sellers, from ASIN suspensions to full-out account deactivation. But who could blame a customer for making an inauthentic claim if the item comes in unfamiliar or obviously generic packaging?
  3. Counterfeit. Ask any shoe or mobile phone seller about their worst FBA scammers. They will put swap their old, used, nasty shoes for new ones, returning the soiled footwear for a refund. They use metal bars as precisely weighed substitutes for expensive mobile phones and return them for big bucks. Then, when Amazon carelessly re-sells the metal bar or the nasty shoes, the seller is hit with a return – and likely a complaint for counterfeit.

What are refurbishment services?

Amazon’s new refurbishment services carry an even higher level of risk than repackaging, so thank goodness that sellers can disable this feature. (Go under Settings to Fulfillment by Amazon. Under “refurbishment settings,” click “disable.”)
Here’s the shocking part. Amazon’s refurbishment services include behaviors that sellers should never, ever undertake – at the risk of being suspended by Amazon for selling used goods as new. (And they would deserve it!) Refurbishment services can include:
  • Re-taping, re-gluing and re-stapling boxes
  • Removing excessive tape, non-product labels and stickers
  • Re-boxing branded and unbranded corrugated boxes
  • For shoes and apparel, steaming and removing stains and odors

OK, my seller friends. Seriously? Did you read that last bullet? Did it make you shudder?

If you want to risk your account, go ahead and opt-in to refurbishment services. But assuming that you aren’t crazy and don’t relish angry customers, please disable this terrible feature.

What is our takeaway?

Here at Riverbend Consulting, we have had some rousing discussions since uncovering this horrific change at Amazon FBA. Our team includes former Seller Performance investigators and managers, as well as long-time Amazon third-party sellers. To a man, we believe this is a disastrous change for sellers.

Why did Amazon make this change? Without going through a lot of boring inside-baseball talk, I can distill our conclusion to the following. Because of the way Amazon accumulates data, and because of the methods Amazon’s managers use to report that data about their own teams up the chain, Amazon has a skewed view of its success at grading and repackaging returns. In other words, mangers like to make themselves look good. So they have convinced the higher-ups at Amazon that returns grading is impeccable at the FC, and that they are ready to expand the returns repackaging program.

They could not be more wrong.

 

Riverbend Consulting navigates online retail. Get your Amazon account reinstated, sell with confidence, and increase your bottom line. Contact us.

Lesley Hensell is Partner at Riverbend Consulting, she offers practical know-how to improve retail performance. Lesley’s experience with Amazon compliance gets accounts back up fast.

Filed Under: 3P, Account Health, Amazon, FBA, Fulfillment, General Tagged With: 3P seller, Account Changes, Amazon, Amazon seller, AMZ, Condition Grading, Customer complaints, Deactivated, FBA, Fulfillment centers, Refurbish, Refurbishment, Repackage, Repackaging, Returns, Safe, Seller account, Seller central, Suspended

7 Ways to Provide Amazon-Style Customer Service

November 15, 2017 Leave a Comment

By Lesley Hensell

 

Earth’s most customer-centric company. The unofficial creed of Amazon.com. A place where the customer comes first, last and always.

Amazon sets a high bar. In  most situations the customer usually gets the benefit of the doubt. This tendency translates into:

  • Acceptance of late returns, past the 30-day window
  • A blind eye to used items, opened items and even old, nasty items that are returned for an exchange or refund
  • Refunds, concessions and gift cards for even the smallest misstep – or no misstep at all

While it can be frustrating for third-party sellers, Amazon’s customer-focused policies have created a loyal customer base willing to:

  • Pay subscription fees for Prime delivery
  • Accept a premium for items that are delivered quickly
  • Give third-party sellers a willing and able group of millions of potential customers

What does this mean for third-party Amazon sellers?
Amazon expects its third-party sellers to offer the same kind of high-end customer service assistance that it does.

If a seller doesn’t live up to those standards, what happens? Warnings, suspensions and other costly enforcement actions can be the result of:

  • A-to-z claims against merchant-fulfilled sellers
  • Negative feedback that is ever-harder to remove
  • Negative product reviews for private-label sellers
  • Fewer repeat sales to happy customers

As every good seller knows, A-to-z claims plus negative feedback creates a high Order Defect Rate. And this can create an account suspension.

Best practices for Amazon customer service
Don’t put black marks on your Amazon account by mistreating customers. Follow Amazon’s lead to provide amazing customer service. This will reduce your risk – and your blood pressure.

  1. Answer customer messages quickly. Shoot for an average response time under eight hours. Amazon answers even faster, so a long wait makes customers antsy.
  2. Write excellent customer service messages. Chances are, your company receives the same five to 10 customer questions time and again. Create high-quality templates to answer customer questions, and require your customer service folks to use them every time. Ensure the tone is friendly and concerned. And provide the exact information they requested. If you don’t like your customer service messages, hire someone to write templates. (Call us!)
  3. Apologize when needed. Don’t hesitate to take responsibility when the customer is unhappy – even if it wasn’t completely your fault.
  4. Pay for quality shipping – especially overseas. Not all package delivery services are created equal. Ensure that you choose reliable, high-quality carriers. Cheaper is not always better.
  5. Look for trends. Even when your customers don’t reach out to you directly, they are leaving clues about your business. High returns show dissatisfaction with specific ASINs. Bad feedback or negative reviews reveal problems with orders or products. Run reports weekly and uncover the biggest problem areas. Solve two problems a week, and soon your business will be more profitable than ever.
  6. Hit the refund button – fast. Don’t make customers beg for refunds. If they are unhappy, just give the money back, if at all possible. This will head off all manner of complaints and customer service problems. Set a price point cutoff. If The price of the item is below X, your customer service team is empowered to immediately provide a refund.
  7. Never, ever argue. Customers can be frustrating. And let’s face it – not everybody is honest. Some art trying to get something for nothing. That simply doesn’t matter to Amazon. Treat every customer as a valuable, important person – no matter what.
image credit: ivosar/Shutterstock

Filed Under: Amazon, Customer Serivce Tagged With: A-to-Z Claims, Customer Service, E-mail Templates, Fulfillment, Returns, Shipping

Inventory sourcing: What is your risk profile?

November 10, 2017 Leave a Comment

“Retail arbitrage is dead.”

By Lesley Hensell

That refrain has echoed across Amazon seller conferences, newsletters and Facebook groups for a year. The loudest cries rose during Nike-gate, when Amazon suddenly – and without warning – gated certain sellers, preventing them from selling specific Nike ASINs. We’d like for you to look closer at inventory sourcing.

But Nike-gate was not an obvious crisis to everyone. Some sellers remained ungated. Others lost all of their Nike ASINs. Still others could sell some of their Nike items, but not others.

Unfortunately, from outside of Amazon’s hallowed walls, nobody can be sure exactly what it all means. Even inside of Amazon, there is disagreement about gating, how it should be rolled out, to which sellers, and more.

That leaves average sellers asking some basic inventory sourcing questions that demand answers:

  • Should I stop retail arbitrage?
  • Should I stop online arbitrage?
  • Why can other sellers get away with these strategies, while Amazon is targeting me with ASIN or account suspension?
  • Why are some so-called Amazon gurus warning everyone to stop arbitrage completely, while others are still building and selling arbitrage software?

In our view, these questions do not have a single answer. Rather, the choices surrounding arbitrage depend upon the individual seller’s resources and risk profile. Inventory sourcing.

Anatomy of a risk profile

Once upon a time, sellers felt confident and secure with their Amazon accounts. Today, Amazon is viewed as a riskier proposition. While sellers can control a wide range of inventory sourcing factors, some variables remain out of their control:

  • Shady Amazon customer complaints
  • FBA warehouse issues
  • UPS, USPS and other carrier challenges
  • Product quality surprises

In addition, RA and OA have their own specific set of risks. Here are scenarios we have seen:

  • Amazon refuses to accept RA or OA receipts – but with no rhyme or reason. For example, one seller might have a Walmart.com invoice accepted, while another does not.
  • Seller Performance complains because long receipts are photographed/scanned/cut.
  • OA suppliers don’t provide invoices in the format Amazon requires.
  • RA and OA items garner intellectual property complaints – both valid and fake.
  • Branded items purchased via RA or OA are suddenly gated, leaving a seller with excess inventory and no way to offload it or recoup costs.
  • RA and OA items may have been shelf pulls or customer returns, and customers rightly believe they were old, damaged or used.

Are you a Bob or a Gary?

Consider two different sellers. Bob has all of his eggs in the Amazon basket. He recently quit his job to sell on Amazon full-time, and he’s focused solely inventory sourcing thru retail and online arbitrage. Bob spends his time scooping up popular items at large retail chains, dollar stores and closeout warehouses. If his account were to be suspended, Bob would find himself with no income to support his family.

Gary has a highly diversified portfolio of income streams. He sells from a brick-and-mortar store. His two Amazon selling accounts feature completely different items: one focuses on hot toys found at retail stores, while the other carries only private label goods. Gary recently launched a Shopify store, and he already sells on eBay and Jet.

Which seller is likely to be more concerned about the risks of retail arbitrage? Or, conversely, which seller needs retail arbitrage more to achieve his financial goals?

There are no right or wrong answers here. What if Gary’s profitability hinges on his RA toys? What if Bob has tried multiple times to break into wholesale and private label, but has not yet been successful?

Understand your company’s risks

Each seller must think through their own risk profile when deciding whether to pursue RA and OA as sourcing strategies. Consider each of the points below, and your risk tolerance for retail and online arbitrage will become clearer:

  1. Certain categories present higher risks for RO/OA sellers. Amazon is cracking down on specific categories that are at higher risk of inauthentic items being sold. Beauty and electronics immediately spring to mind.
  2. Some brands present higher risks as well. There is a reason that Amazon’s gating push started with Nike. It’s a highly counterfeited brand with relatively expensive items. The more luxurious or expensive the brand, the more likely an Amazon customer will make a counterfeit claim – and RA/OA receipts may not cut it with Seller Performance.
  3. Some RA/OA sources are more legit than others. Amazon is more likely to accept receipts and invoices from retailers with solid chains of custody for their merchandise. For example, Walmart and Target tend to have strong direct relationships with manufacturers, and their distributors are expected to provide only authentic goods. In contrast, discounters like TJ Maxx and Marshall’s buy liquidation deals. There is no proof of the chain of custody for these items. (Think Coach bags at a discounter – are you sure they are real? Will Amazon believe they are real?) This even applies to your favorite drug chains. CVS, Walgreen’s and Rite-Aid score those awesome endcap deals from liquidators.
  4. RA/OA items can be shelf pulls and customer returns. A well-known shoe store fills its online orders by having its retail outlets ship items to the customer from right off the floor. Often, these shoes are in polybags and taped together – no box and no tags available. How many times were those shoes tried on? Do they have paper in the toes? Other large retailers have similar policies. Even if items ship from the warehouse, some of the stock may be shelf pulls that were used and returned by customers.
  5. Is Amazon your only stream of income? If Amazon is the only way you replenish your personal bank account, minimizing risks probably makes sense.

If you’re married to RA/OA, with no plans for divorce …

Some sellers feel the rewards of RA/OA greatly outweigh the risks. The margins can be excellent, and inventory turn can be rapid. It’s also a great way for new sellers to enter the world of Amazon sales. If you’re one of these folks, consider the following suggestions:

  1. Choose retailers that eschew liquidation. When inventory sourcing you need to buy brand-new merchandise. Not liquidation lots.
  2. Pick sources that Amazon is likely to see as its equal. Amazon gives credit to the big boys. It is unimpressed by dollar stores and their cousins.
  3. Inspect, inspect, inspect. Even high-end retailers accept returns and then put them back on the floor. Make sure the coffee maker is coffee-free, the curling iron is hair-free, and the cosmetics are sealed.
  4. Choose brands and categories that are less likely to raise eyebrows. Yes, that high-end scarf may have great margins. But without an airtight chain of custody, is it really worth risking your account?
  5. Understand Amazon’s condition guidelines. Shelf wear matters. Amazon customers expect items to be brand new and defect-free. Even a bumped package can spell trouble.
  6. Build multiple streams of income. Sell on other platforms. Create an approved second Amazon account for your private label offerings. Flip houses. Develop a service business. Do something to ensure you will still have revenue if Amazon takes out your seller account.

Filed Under: Amazon, Inventory Sourcing Tagged With: FBA Warehouse, Inventory, Liquidation, Nike, Online Arbitrage, Retail Arbitrage, Returns, Risk Management, Shelf Pulls, Tips

Categories We Serve

Automotive Parts & Accessories

Appliances

Baby

Beauty & Personal Care

Books

Cell Phones & Accessories

Clothing, Shoes & Jewelry

Computer

Electronics

Garden & Outdoor

Health, Household & Baby Care

Home & Kitchen

Luggage and Travel Gear

Luxury Beauty

Office Products

Pet Supplies

Sports and Outdoors

Tools & Home Improvement

Toys & Games

Video Games

(877) 289-1017

+44-161-8508-269

New Jersey • Texas

© Riverbend Consulting 2021 | Privacy Policy | Site Map |

Digital Marketing by Paid Search Consulting

  • Home
  • Suspensions
    • Account Suspension
    • ASIN Suspension
    • Back
  • Account Services
    • Account Health Check-Up
    • Seller Account Protection
    • Account Management
    • Reimbursements
    • Amazon Editorial Recommendations
    • Back
  • Our Blog
  • About
    • About Us
    • Our Team
    • Testimonials
    • Referral Program
    • Back