Amazon will start charging for some returns

Customers returning items to the UPS store will incur a charge if an Amazon-owned store is located closer to their address.
Amazon boxes on a doorstep.
  • Amazon will start charging $1 for some returns.
  • Customers who return to a UPS store will be charged if a Whole Foods, Amazon Fresh or Kohl’s is located closer to their delivery address. 
  • Several retailers have experimented with charging for returns to offset costs.

In its latest move to cut costs, Amazon will start charging customers to return some items.

According to areport from The Information, shoppers who return undesired products to a UPS store when a Whole Foods Market, Amazon Fresh or Kohl’s store is closer to their delivery address will be charged $1 to make the return. Amazon has partnered with Kohl’s to accept returns nationwide at its stores since July 2019. 

It’s not the first time this year Amazon has added fees where services for shoppers used to be free. The e-commerce giant, which plans to expand its physical grocery presence beyond its existing footprint, earlier this year also increased fees on Amazon Fresh grocery delivery.

As Retail Leader previously reported, free grocery delivery is now available only to consumers who spend more than $150 in a single order. For orders between $100-$150, Amazon imposes a $3.95 delivery fee, a $6.95 fee for orders between $50-$100 and a $9.95 fee for orders less than $50. Previously, free delivery from Amazon Fresh was available to customers whose order total reached $35. 

Returns represent a growing problem for retailers, and especially for Amazon, which did $514 billion in net sales last year. Several other retailers have experimented with charging customers for making returns in certain circumstances, including apparel retailers like H&M and Zara, Urban Outfitters, Abercrombie & Fitch and TJ Maxx, according to Insider.