Latest news with #Helium10
CNBC
2 days ago
- Business
- CNBC
Easy returns cause big trouble for Amazon sellers, but return rates show signs of slowing
Returns on Amazon are free and easy for shoppers, but they're risky and expensive for the small businesses that sell a majority of the goods on the world's biggest e-commerce site. Returns have driven some sellers to exit the popular Fulfillment by Amazon program, while others told CNBC they'd like to leave the platform altogether. At the heart of the problem is a big rise in returns fraud, which has led to customers mistakenly receiving used products when they ordered something new. In two particularly egregious examples involving baby products described to CNBC, Amazon sent customers used diapers and a chiller with someone else's rotten breastmilk inside. "I really don't think that consumers understand how many small businesses are on Amazon and how their return habits affect small businesses and families like mine," said Rachelle Baron, owner of Beau and Belle Littles, which sells reusable swim diapers on Amazon. Baron said her business tanked after a return incident with Amazon. The e-commerce platform shipped soiled swim diapers to customers after the used baby products had been returned to Amazon, Baron said. "There was actually two diapers that were sent out that were poopy," she said. In 2024, nearly 14% of all U.S. retail returns were fraudulent, up from 5% in 2018, according to a report by the National Retail Federation. In total, the report found that returns cost retailers $890 billion in 2024. Amazon started charging sellers in its fulfillment program (FBA) a new fee in June 2024 for items that exceed certain return rate thresholds. Sellers who sign up for FBA rely on Amazon for logistics, including shipping, packing and returns. In September, a couple months after the fee went into effect, e-commerce group Helium 10 saw return rates for U.S. Amazon sellers drop nearly 5%. "It's forcing the seller to have higher quality listings and higher quality products," said Helium 10 General Manager Zoe Lu. Amazon has also started adding a warning label to some "frequently returned items," which could be contributing to the dip. However, the new fee may also be leading to rising prices. One survey by e-commerce analysis company SmartScout found that 65% of sellers said they raised prices in 2024 directly because of Amazon fee changes. Other sellers told CNBC returns fraud is the reason they've raised prices. In total, CNBC talked to seven Amazon sellers to find out how they're handling the rising cost of returns. "We're running at about just over 1% net profit on Amazon, totally due to fraud and return abuse," said Lorie Corlett, who sells Sterling Spectrum protective cases for hot wheels. She said her return rate is 4% on Amazon and only 1% on other marketplaces like Walmart. "It's really Amazon that's accountable at the end of the day. People would stop doing it if Amazon held them accountable." Amazon told CNBC it has no tolerance for fraudulent returns and that it takes action against some scammers. Those measures include denying refunds and requiring customer identity verification. Mike Jelliff sells professional music gear through his GeekStands brand on Amazon and eight other marketplaces. He said his return rate on Amazon is three times higher than the average he sees elsewhere. "On eBay, we're allowed to block specific customers out," Jelliff said. "But on Amazon, that customer is still allowed to repurchase from us." Jelliff showed CNBC the system of about 40 cameras he's installed in his Tyler, Texas, warehouse to track every outgoing item, incoming return and unboxing. He uses the images when filing appeals with Amazon, including when customers request refunds claiming they never receive an item. He keeps a blacklist of repeat offenders who commit this kind of fraud and those who return used and damaged items, which become a total loss for him. Amazon has made some improvements to its returns process, said Jelliff, who doesn't rely on FBA. This includes Amazon allowing small businesses to make multiple appeals when fighting a fraudulent return. Amazon has also let Jelliff opt-out of automatic return labels for items above $100 starting in 2023, and his return rate has been dropping since. Figuring out which returns are fraudulent and which are ready for re-sale is labor-intensive and item specific, experts said. That creates plenty of room for error. "Because it's such a large operation, things are missed," said Lu of Helium 10. "I think they're probably missed on the margins, but these stories are very impactful because it is such a reckoning for the brand." Ceres Chill founder Lisa Myers, who once relied on Amazon to handle returns for her business as part of FBA, has one of these stories. In 2023, Amazon sent one of Ceres Chill's products to a customer with someone else's rotten breastmilk inside, said Myers, adding that the customer wrote a review saying, "she will never forget that smell." "To have something, and I don't mean to be dramatic, but dangerous, somebody else's bodily fluids in your kitchen rotting in something that you had intended to use for your child is unacceptable," Myers said. "That's the moment I broke down crying and just sat down and thought, I have no idea how this could have happened." Myers said she left FBA after the incident, leaving behind benefits like having her products labeled with Amazon's Prime badge. "It hurts our business to not participate in Fulfilled by Amazon," Myers said. "It's just we're not willing to, we will never put profit over the safety and, frankly, mental health of our customers." Instead, Myers outsources all her returns to baby resell specialist Goodbuy Gear, which is on track to re-sell 200,000 returned baby products this year. Kristin Langenfeld started GoodBuy Gear when she was a new mom struggling to find a good quality, used jogging stroller. "We've spent the last nine years building out a database that has all of the products and the variations, the common issues, the recalls," Langenfeld said. "For some of these, there's 40 points that we inspect on the item itself, and it's really complicated." Langenfeld showed CNBC the process at her warehouse in Malvern, Pennsylvania, where each item is inspected for about 15 minutes and is typically handled by at least four employees. The resource intensive process is paying off. She says 33 new sellers signed up in 2024, three times more than the previous year. And with business growing 50% year-over-year, she's upgrading to a bigger warehouse in Columbus, Ohio. She was inspired to handle returns after visiting a major retailer's returns warehouse five years ago. "Taped on the floor were signs that said 'incinerate,' 'destroy,'" she said. Returns generated an estimated 29 million metric tons of carbon emissions in 2024, and 9.8 billion pounds of returns ended up in landfills, according to reverse logistics software provider Optoro. Amazon has faced criticism for destroying millions of pounds of unused products. In 2022, Amazon told CNBC it was "working towards a goal of zero product disposal," but wouldn't give a timeline for that ambition. Three years later, that goal is still in the works, with Amazon telling CNBC in a statement, "The vast majority of returns are resold as new or used, returned to selling partners, liquidated, or donated." In 2020, Amazon added two new options for sellers to re-home returns. "Grade and Resell" allows all U.S. FBA sellers to have Amazon rate the return and mark it as "used" before re-selling it. FBA Liquidation allows sellers to recoup some losses by offloading palettes of goods for re-sale on the secondary market through liquidation partners like Liquidity Services. There's also an FBA Donations program that's been around since 2019, allowing sellers to automatically offer eligible overstock and returns to charity groups through the non-profit Good360. Amazon told CNBC these seller programs give a second life to more than 300 million items a year. For shoppers wanting to keep returns from incineration or landfills, Amazon also has options. Amazon Resale has used and open-box goods, Amazon Renewed sells refurbished items and Amazon Outlet sells overstock. Daily deal site Woot!, bought by Amazon for $110 million in 2010, also sells scratched and dented items. Customers can also trade in certain electronics, like Amazon devices, phones and tablets, for Amazon gift cards or send them to the company's certified recycler. "I hope the change that we're able to make as a country is that we stop making crap," Langenfeld said. "We should make high quality products that are meant for resale."
Time Business News
13-05-2025
- Business
- Time Business News
Amazon FBA Automation: Build an Automated Amazon Store
Late nights managing shipments. Constant emails with suppliers. Endless clicks inside Seller Central just to keep up with your listings. This isn't entrepreneurship, it's digital chaos. And if your dream was to build a hands-off, income-generating Amazon business, it's probably starting to feel more like a job than a freedom engine. But there's a way out and it's called Amazon FBA Automation. Let's dive deep into how smart sellers are now building automated Amazon stores that practically run themselves. Spoiler: They're not working harder, they're working smarter, with Amazon FBA Services and the support of a professional Amazon Marketing Agency. Amazon FBA Automation isn't just about hiring a VA or setting up a few tools. It's a business model transformation. You're leveraging Amazon's Fulfillment by Amazon (FBA) service, pairing it with automation strategies, systems, and partners to eliminate day-to-day involvement. That means: No packing or shipping No constant price-checking No late-night inventory panic No manual customer service battles When built correctly, an automated Amazon FBA store handles product research, sourcing, logistics, and even marketing, with little to no manual input from you. Once your system is live, you're no longer stuck in the weeds. You get time back—time to scale, time to travel, time to focus on growth instead of grunt work. With the right Amazon Store Setup and Optimization, your store is ready to scale from day one. Listings are fully optimized. Backend keywords are tuned. Product pages are conversion-ready. An automated store reduces risk through consistency. No guessing games. No last-minute surprises. Just clean, trackable performance metrics you can monitor and refine. Most sellers start with excitement, then burn out midway trying to juggle everything alone. That's where an expert Amazon Marketing Agency steps in. These agencies bring: Data-driven product research Keyword-rich listing optimization PPC campaign automation Real-time market adjustments Compliance and policy protection You're not just outsourcing tasks. You're hiring Amazon veterans who've launched and scaled thousands of FBA stores. They know what works and more importantly, what doesn't. It's not about picking what you like. It's about what customers are searching for. Tools like Helium 10 or Jungle Scout help, but interpreting that data requires experience. That's why successful sellers turn to Amazon FBA Services that specialize in identifying low-competition, high-demand products. You don't need to fly to China or negotiate with dozens of suppliers. A solid automation team manages sourcing, negotiates prices, and ensures products land in Amazon's warehouse, on time and under budget. Once your product's inbound, your Amazon store setup needs to shine. That means: High-converting product titles SEO-rich bullet points Eye-catching A+ content Backend keyword tuning This is where Amazon Store Setup and Optimization services make a huge difference. They don't just make your listings 'pretty', they make them sell. Using platforms like SoStocked or RestockPro, sellers can monitor inventory levels, predict future demand, and automate restocking, all without manually checking stock every day. This prevents stockouts, which are revenue killers, and overstocking, which eats into profit margins. With tools like Aura and SellerSnap, your pricing stays competitive in real-time. These AI-based repricers automatically adjust your listings to win the Buy Box without tanking your margins. Running ads without automation is like lighting money on fire. Tools like Teikametrics and Perpetua help scale Amazon advertising campaigns without constant human oversight. Set your goals, budget, and target ACoS and let the algorithm handle the rest. You didn't get into Amazon to build another job. You wanted a business that runs itself. Amazon FBA Automation is the secret sauce behind today's most successful Amazon sellers and it's no longer reserved for elite brands. Manage Amazon, a top amazon managing agency helps you break through the manual mess and build a system that scales automatically. From Amazon Store Setup and Optimization to full-scale automation, our team handles every moving piece while you focus on the bigger picture. TIME BUSINESS NEWS
Yahoo
24-04-2025
- Business
- Yahoo
Pacvue Receives 'Overall Digital Commerce Platform of the Year' In 2025 RetailTech Breakthrough Awards Program
Pacvue works with over 70,000 brands and agencies across 95+ retailers worldwide including Amazon, Walmart, Target and Instacart LOS ANGELES, April 24, 2025 (GLOBE NEWSWIRE) -- Pacvue, the leading commerce acceleration platform that integrates retail media, commerce management and measurement, today announced it is the recipient of 'Overall Digital Commerce Platform of the Year' in the third annual RetailTech Breakthrough Awards program. The company's first-to-market platform drives incrementality, profitability and market share for brands, while turning insights into actionable recommendations. With the incorporation of Pacvue's enterprise solution with Helium 10 for SMBs, Pacvue is now the most comprehensive commerce and retail media platform available in the market. 'Pacvue has a history of being first to market with key innovations and partnerships that have helped drive the industry forward,' said Melissa Burdick, co-founder and president of Pacvue. 'This award reinforces our commitment to helping brands win in commerce through innovation and execution. We'll continue redefining the standards in retail media planning and intelligence, giving our clients the competitive edge they need to thrive.' Over the past year, Pacvue significantly ramped up its product innovation and AI efforts, including hiring Microsoft veterans to introduce new AI integrations across its product suite. The company also expanded its partnership with GroupM to launch an Integrated Commerce Management solution that unifies media management and retail operations to empower brand partners to stay ahead in a dynamic market. Additionally, Pacvue was selected as a beta partner to roll out Amazon DSP globally in January 2025, helping advertisers maximize performance with enhanced tools and support. Pacvue offers 360° omnichannel commerce management. Brands and retailers can merge retail media and commerce operations into a single source of truth, empowering them to uncover and act on new opportunities to drive profitability, incremental sales and market share growth. The comprehensive platform enables brands to access critical insights impacting growth and quickly action them to optimize performance and boost sales. The mission of the annual RetailTech Breakthrough Awards program is to spotlight and celebrate the global innovators who are transforming the retail technology landscape. The RetailTech Breakthrough Awards program conducts the industry's most comprehensive analysis of standout leaders and technologies driving innovation and shaping the future of retail. This year's program received thousands of nominations from more than 14 countries worldwide, reflecting the global momentum and impact of retail technology advancements. 'Pacvue is at the forefront of retail and commerce media, offering the most comprehensive commerce and retail media platform available in the market. In today's omnichannel retail environment, retailers are challenged to unlock the deeper insights needed to gain the competitive edge needed to thrive. Time spent on manual work, revenue loss and the efficient allocation of ad spend are all factors,' said Bryan Vaughn, Managing Director, RetailTech Breakthrough. 'Retailers are leveraging Pacvue's unified cross-retailer platform to access comprehensive e-commerce analytics and actionable insights that optimize their retail media strategies, performance marketing, and sales growth. That what makes Pacvue's offering our 'Overall Digital Commerce Platform of the Year!'' For more information about Pacvue, please visit About PacvuePacvue is the leading commerce acceleration platform that integrates retail media, commerce management and measurement. The company's first-to-market platform drives incrementality, profitability and market share for brands, while turning insights into actionable recommendations. Backed by a global team of experts, Pacvue works with over 70,000 brands and agencies across 95+ retailers worldwide including Amazon, Walmart, Target and Instacart. With the incorporation of Pacvue's enterprise solution with Helium 10 for SMBs, Pacvue is now the most comprehensive commerce and retail media platform available in the market. Founded in 2018, their global presence includes locations in Seattle, New York, Los Angeles, Washington DC, London, Shanghai and Tokyo. For more information, visit About RetailTech BreakthroughPart of Tech Breakthrough, a leading market intelligence and recognition platform for global technology innovation and leadership, the RetailTech Breakthrough Awards program is the premier awards and recognition platform devoted to honoring excellence in retail technology companies, services and solutions around the world. The RetailTech Breakthrough Awards provide public recognition for the achievements of retail technology companies and products in categories that include store management, digital displays, checkout automation, workforce tools, smart dressing rooms and more. For more information visit Tech Breakthrough LLC does not endorse any vendor, product or service depicted in our recognition programs, and does not advise technology users to select only those vendors with award designations. Tech Breakthrough LLC recognition consists of the opinions of the Tech Breakthrough LLC organization and should not be construed as statements of fact. Tech Breakthrough LLC disclaims all warranties, expressed or implied, with respect to this recognition program, including any warranties of merchantability or fitness for a particular Contact for Pacvue: SamsonPR pacvue@ Media Contact: Bryan Vaughn RetailTech BreakthroughBryan@ in to access your portfolio
