Some free Amazon returns at UPS aren’t on the house anymore under new a new policy.
According to The Information, Amazon will slap a fee on goods returned to a local UPS if either an Amazon Fresh, Whole Foods or Kohl’s is located within a specific distance, dependent on the customer’s delivery address.
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“We always offer a free option for customers to return their item – 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,” Amazon spokesperson Steve Kelly said in a statement.
At $1.00 per drop-off, the fee isn’t substantial, but it does send a message that Amazon will decide whether return deliveries will be on the house or not. Before the fee rollout, Amazon customers could leave returns for free at over 4,760 UPS locations across the U.S.
Amazon owns both Whole Foods and Amazon Fresh, both of which are put to use as package return destinations. Additionally, the retail powerhouse has had a delivery return pact with Kohls since 2019.
Yet with Amazon Fresh limited to 44 U.S. store locations and Kohls standing at 1,170 outlets, UPS is far and away the choice for customers looking to return that golf club or desk lamp.
Amazon, which reportedly believes that allowing free package returns creates goodwill and heftier purchasing activity among consumers, may not want to stray too far from its no-hassle gratis policy on returns.
That’s the case in a tough economy where Amazon is looking to cut costs pretty much across the board.
“Handling returns is not cheap, and Amazon is learning that as it continues to cut costs across its organization,” noted Jay Kent, managing director at SLB Performance, a supply chain company, in a LinkedIn post.
The retail giant recently announced it will lay off 18,000 staffers and is curbing both its Amazon Go convenience store outlets and its Amazon Smile charitable giving programs, which allow customers to make a donation with every purchase.
