Taking returned items from customers is only the beginning of the process. The real difficulties show up after that. Which of the returns can be sold as new, which can be sold as-is, and which can be repaired / refurbished. What if a unit is returned once again? Did the customer return counterfeit? How to detect bad-faith actors (which may be the seller)? Who is to blame for damages? What if the item requires special handling (household chemicals, batteries, etc.)? And how to safely dispose / liquidate inventory while being compliant to all the regulations? And, imagine adding taxes, revenues, fees, on top of all that.
A lot of these questions are very labor-intense. It may be possible to automate some bits here and there, but the complexity is inherent to the problems.
It'd be really hard to imagine a random startup can handle returns half as well. Amazon's regulatory compliance team is probably many times larger than a random average startup. Here the economies of scale is really in favor of the big players.
One day a week the bins fill up with returned/liquidated goods from Amazon, Target, etc etc. Everything in the bin is the same price and the price drops every day until they fill up again a week later.
Search "bin store" on youtube or tiktok and you should get a million videos about the craze.
We're not closing. Amazon Returns are terrible for us.
We get absolutely nothing out of it. Our stores pay for everything; the boxes, tape, shipping, etc.
Nobody got a pay raise out of it either.
Except from compulsive shoppers like me that can't walk into a Staples without buying $100 worth of stuff.
They just sell it in bulk and leave it to regular folk to buy pallets or containers and sell the shit on WhatNot.
Safe to say I ended up buying my next TV (actually a monitor this time) from amazon, too. If they struggle with that kind of return then what would anyone else do? I don't have a car, I need someone to come and pick it up.