Amazon Criticized For Destroying Millions Of Dollars Of Products.

[Grant Jennings]

Amazon is receiving stinging criticism after it was revealed that one of its U.K. distribution facilities has been destroying approximately 130,000 items each week, almost all of it new, still in the package. While the scale of this is huge - because it's Amazon - it isn't unique to them.

Retailers routinely destroy products for several reasons: expired perishable items; safety recalls; copyright claims; dangerous items (broken glass); damaged beyond repair. The items Amazon is destroying don't appear to fall into any of these categories but this still isn't unique to Amazon. Retailers have long had items that were classified as "Return To Vendor", at one time most of those items would be packed and shipped back to the vendor but as shipping costs have increased fewer and fewer items are actually returned - many are destroyed. It is often more cost effective to destroy an item and mark it out of inventory than it is to ship it.

Items that have been returned by customers are often destroyed, too. If an item that contains multiple parts is returned it may be considered more cost effective to mark the item out of stock than to have an employee spend the time to sort through the contents and determine if all of the parts are present. Ethical retailers will inspect returned items to ensure they are in working order and sell them at a reduced price as an "Open Box" item. Many consumers are reluctant to purchase returned items which requires the retailer to sell them at a substantial discount. Again, the decision has to be made if it is more cost effective to destroy the item than to sell it at a reduced price.

Clearance items (including seasonal goods such as holiday decorations and Summer recreation items) are destroyed after being greatly reduced. Store shelves need to be cleared for new inventory. No, products like Christmas decorations aren't sent to a warehouse only to be returned to stock a year later.

What about outlet stores? Are items that didn't sell in retail stores packed up, shipped and re-ticketed to sell in an outlet store? No. Most of the items sold in "outlet" stores are less expensive/lower quality products made specifically to be sold at the "outlet" store at a "less than retail" price. In the U.S. there are no laws specifying what can be called an "outlet".

Ever watch Hoarders? Have you seen the amount of new items, still in the package - often still in the bag - in these homes?! Though Hoarders has a crew of people sorting through items deciding what should be kept, sold, donated or trashed, considering the short time-frames these crews are given I would be shocked if a lot of new and like-new items weren't hauled to the landfill.

I'm not defending Amazon, I think a lot of their business practices suck but in this case they aren't doing anything different from most retailers. This isn't a reflection on Amazon, this is a reflection of our consumerist/disposable culture.

 

[Rove]

this is a reflection of our consumerist/disposable culture.

Well I'm glad you added that little piece at the end of the article because I squarely put the fault of most our ills on the consumer. I routinely hear people tell me it would be cheaper to purchase a new inkjet printer than buy replacement cartridges. I have to remind them, all manufacturers of inkjet/laser printers now supply starter cartridges when you purchase a printer. And don't get me started on those clowns who will request a cheap printer that is cheap to run. I tell them no such thing exists.