New Amazon Label? Products with High Return Rates Could Soon Be Labeled
Amazon is introducing new labels aimed at discouraging customers from purchasing a product.
What?
The new label is set to appear on the detail pages of products that are returned above average often, alerting customers to this fact. This is reported by theinformation.com. Currently, the label is only being rolled out in the USA and is not yet widespread. However, what Amazon introduces in the USA usually also makes its way to the German marketplace.
Label Aims to Ensure Informed Purchasing Decisions
The initiative is not a campaign to ruin the seller business but aims to reduce the return rate of products that are frequently returned. Returns are a significant problem in the e-commerce industry – not only for the environment and sustainability but also for sellers. Currently, one in four packages in Germany is returned, and in categories like clothing or shoes, it is even more than one in two.
The new label is apparently intended to serve two purposes:
Instead of making returns inherently chargeable and thereby alienating customers, the company is now trying to address the problem before the purchasing decision is made. For sellers, the new label can be both a blessing and a curse.
Impact on Amazon Sellers
On one hand, a low return rate is already a factor for the Amazon algorithm when it comes to rankings and the Buy Box, and it can also be beneficial for sellers from an economic perspective. Additionally, the label may have the pleasant side effect of diminishing the impact of fake reviews and vague product descriptions from unscrupulous competitors in the competitive landscape.
On the other hand, sellers with a high return rate are under pressure – as the labeling is likely to deter many customers from making a purchase. It would not be surprising if the new label were eventually incorporated as a ranking factor in the display of search results.
The impact of the labeling that marketplace sellers can expect largely depends on their own situation. Products with a low return rate could benefit; on the other hand, products with a high return rate could lose sales. So what should be done now?
5 Tips for Preparing for the New Amazon Label
The key is likely to be reducing the return rate. This can be achieved through various measures that should be tailored to the seller’s situation. Instead of blindly optimizing and investing a lot of time and money, sellers should first find out why their return rate is higher than that of comparable products. The following tips can serve as guidelines.
Conclusion: Informed Purchasing Decisions as an Opportunity
The new Amazon label can be an opportunity for professional sellers. Unscrupulous competitors who buy fake reviews or fill their product detail pages with misleading information will face some pushback.
Additionally, reducing your own return rate is a sensible endeavor for various reasons. However, it is important to focus on the right adjustments and compare your business with market standards for analysis.
Image credit: © piter2121 – stock.adobe.com
