Sellers are frustrated about the updates to return policies for seller-fulfilled fashion items. This comes after Amazon sent out an email with the following subject line: Free returns on Fashion items for seller-fulfilled orders. On October 26, 2021, the policy came into effect to improve the shopping experience for customers who buy apparel on Amazon. However, because of the challenges in shopping for clothing online, the category deals with high return rates and increasing shipping costs becoming an expensive ordeal.
"We believe in listening to our customers' feedback and responding with actions that focus on improving their buying experience every time they shop or return an item in our stores. Amazon Fashion customers are not fully satisfied with the current return experience of seller-fulfilled orders"
Well, the responses have come in, and sellers were not impressed. On an Amazon forum, sellers expressed their dislike and concern about the new policy. Sellers claim that this update puts pressure on them to increase their prices to compensate for rising return fees. In addition, some fear that this policy will soon extend to other categories.
Many sellers are dealing with this by increasing their prices on Amazon and revising their listings to reduce high-return rates. Sellers incorporate as much detailed information about the clothing article as possible into their Amazon listing, from detailed images, accurate sizing, measurements, and a thorough description. By doing this, they could eliminate the need for so many returns and cut down on expenses.
It’s not a surprise that Amazon has gone through exponential growth in the past years. With surges due to the pandemic’s influence on customer behavior, sellers have thrived on various e-commerce platforms, and Amazon’s growth has skyrocketed.
According to Amazon’s 2021 Small Business Empowerment Report, the number of sellers with sales above $10m increased by 40%. More impressive findings include the following:
The reports come from sellers with products in various categories, but the trends remain the same across the board. Brands have been doing so well that competition is getting fierce among Amazon aggregators. These businesses whose model is to buy and build e-commerce brands are fighting to take over and grow Amazon brands. An aggregator will often handle these tasks in-house and capitalize on margins from listing optimization, marketing, ad spend, supply chain management, and more.
The rise of aggregator interest comes from the impressive numbers sellers bring in with their products on Amazon. Currently, the top 5 U.S. states with the highest number of sellers per capita are:
Top 5 sellers listed by percentage of growth year over year
Don’t bank on these trends to last forever. Many suspect it will come to a plateau in 2022, so do what you can to maximize the opportunity for growth while you can. Consider growing your brand by exploring new product opportunities, elevating your branding, or optimizing your marketing strategy.
Product packaging is highly effective when it comes to delivering an experience to your customers. Because of the amount of competition in this marketplace, it's an incredible challenge to stand out, especially when products are so similar. That's where branding comes into play and how sellers can differentiate their products from other sellers through customer experience.
Customizing your product packaging provides an opportunity to harness your brand while delivering additional messaging through the product. Whether the messaging is about your brand, the product, or any other initiatives you have going on, there are a ton of ways to get creative and cash in on the benefits.
5 Ways to Upgrade Your Product Packaging
There are a ton of reasons why investing in your product packaging is so valuable. From product safety to brand positioning, customer retention, and more, it's a great strategy to move your brand in the right direction.