>But it is completely false to say that Amazon is generally able to pass on the cost of all its returns to manufacturers, that this makes returns zero-cost for Amazon,The vendor agreements say if the returns are Amazon's fault, they will not deduct from remittances. If you're a vendor/seller, you use the Amazon Vendor Portal to look at the account status of invoices, purchase orders, inventory, returns, payments, deductions, etc: https://vendorcentral.amazon.com/
When a customer returns something, they can pick from a menu of reasons such as "not as described", "changed my mind", or "wrong size", etc. For those reasons, the amount is always deducted from the seller's account because none of those reasons are Amazon's fault. (Again, Amazon didn't spend the ~$25 for $50 shirt that they're desperate to recover as you're claiming.) In many cases, the seller doesn't want to pay extra to ship the returned items back so they just let Amazon throw it away. That's how a high volume of perfectly resellable items end up in the garbage -- especially before the bad publicity in 2019. Amazon has reduced the environmental pollution of customer returns by giving more options to sellers to restock and resell but it's still not totally eliminated.
EDIT to reply: >Under first-party, Amazon is still purchasing the goods wholesale. Amazon absolutely spent the $25 for the $50 shirt. That is just how it works.
In a 1P relationship (not 3P), Amazon will deduct the wholesale $25 amount caused by customer returns from the next payment to the vendor/supplier. That's how it works. Yes, Amazon acting as 1P buys wholesale -- but they can also deduct the wholesale amounts owed to the supplier for customer returns that are not their fault.
I can't copy&paste the Amazon 1P vendor agreement but here's a similar one from Costco and notice the verbiage:
>14. CUSTOMER RETURNS. Costco may pursuant to Section 13.1 reject or revoke acceptance of and return to Supplier any Product returned by Costco’s customers. For any Products returned by customers, Costco reserves the right to return such Products to Supplier or to salvage, donate, dispose of, re-use, refurbish or recycle such Products at Supplier’s sole cost and expense.
Similar wording for the big retailers like Walmart, Target, etc.
>Nobody on either side is throwing away perfectly good, sellable merchandise just for the fun of it.
You keep repeating this but the investigative reports with GPS trackers put inside new items immediately returned to amazon to trace where they go and hidden cameras at landfills and industrial shredding facilities that receive truckloads of Amazon customer returns shows otherwise. The volume of it has been reduced somewhat, but not eliminated. Amazon doesn't throwaway all resellable items, but they still throw away a lot of it.