Online Storefront Labels : frequently returned
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Overview
Amazon has recently introduced a new banner on its website titled ‘Frequently Returned.’ The banner will appear on products that have a high return rate. Although Amazon has not specified the exact return rate, it suggests that the product is returned far more often than average products on the website. The main purpose of this feature is to inform customers about the authenticity of the product and to warn them that the product’s purchase numbers alone may be misleading.
It is essential to understand the reasons for this new feature and its implications on product quality and customer satisfaction. This article will delve into the details of Amazon’s new banner, including its benefits and drawbacks. We will also discuss how customers can determine the legitimacy of a frequently returned item before making a purchase.
What is Amazon’s Frequently Returned banner, and How Does it Work?
Amazon is using machine learning algorithms to identify products that have a high rate of return. Once a product is flagged as frequently returned, Amazon places the banner on the product’s listing page. The banner’s label reads, “Frequently Returned,” and appears under the product’s title.
The banner encourages customers to check the reviews before making a purchase. This is because the return rate could result from a variety of factors, including faulty products, incomplete product descriptions, or unsatisfactory customer service. Customers can read reviews from previous buyers who have stated their concerns, experiences, and feedback regarding their purchased products. Customers will then be able to make a well-informed decision on whether to proceed with the purchase or opt for an alternative product.
Amazon knows that returns not only cause inconvenience to the customer but also contribute to the company’s operational costs. Therefore, Amazon’s Frequently Returned banner is meant to reduce the percentage of returns and prevent the company from incurring more costs due to a high volume of returns.
Benefits of Amazon’s Frequently Returned Banner
1. Improves Transparency: Amazon’s Frequently Returned banner is a big step towards improving transparency in the marketplace. By informing customers about products with a high return rate, Amazon is setting expectations for customers to know what they are purchasing. This provides customers with transparency about the quality of the product before they decide to purchase it.
2. Encourages Customer Feedback: The Frequently Returned banner encourages customers to review products on the website. Customer feedback helps to improve the quality of products and hold sellers accountable for selling defective, insufficient, or misrepresented items.
3. Reduces the Costs of Returns: Undoubtedly, returns are expensive for Amazon, and the Frequently Returned banner can significantly reduce the operational costs associated with returns. This is because customers will be informed about products that have a high return rate, and they will be more likely to choose alternative products that are higher quality.
Drawbacks of Amazon’s Frequently Returned Banner
1. Stigmatizes Products: The Frequently Returned banner could create a stigma around products displaying the label. This is because customers may avoid products displaying the label, even if the product could be of high quality. Thus, products that may be of good quality but have a high return rate could lose their market value.
2. May Create Bias: The Frequently Returned banner could create a bias against products that are new to the market. As these products do not yet have a set of reviews, they could wrongly be classified as frequently returned items, preventing them from gaining market traction.
3. Reduces Competition: By discouraging customers from purchasing frequently returned products, Amazon reduces competition amongst sellers. This impacts smaller businesses who rely on the platform to reach audiences as they will be at a disadvantage when competing against larger and more established businesses.
FAQs
1. Can the Frequently Returned banner be removed from a product’s listing?
No, Amazon’s Frequently Returned banner cannot be removed by the seller. Amazon is responsible for flagging items as frequently returned and will place the banner on the product’s listing page if the product meets their threshold.
2. What products are likely to have the Frequently Returned banner?
Products with a higher rate of return than their respective categories are more likely to have the Frequently Returned banner. However, Amazon has not specified the exact return rate that triggers the banner.
3. Can the Frequently Returned banner be seen on the Amazon mobile app?
Yes, the banner can be seen on Amazon’s mobile app, just like it can be seen on Amazon’s website.
4. What if a product cannot be returned but has the Frequently Returned banner?
If a product cannot be returned, the Frequently Returned banner will still apply to the product’s listing, alerting potential buyers that the product has had an unusually high return rate.
5. How can a seller improve their product’s return rate and remove the Frequently Returned banner?
Suppose a seller wants to remove the Frequently Returned banner from their product listing. In that case, they should work on improving the product’s quality, providing clear descriptions and instructions, and providing excellent customer service to users who have already bought the product. Consistently receiving positive reviews from buyers could help improve the product’s return rate in the future.
Conclusion
Amazon’s new Frequently Returned banner offers its customers greater insight into the products they purchase, providing a high level of transparency, accountability, and control. However, the feature has its drawbacks, too. While it will inform customers of products with a high return rate, it may also create bias and stigmatization against otherwise high-quality products, reduce competition, and negatively impact smaller businesses.
As a customer, it is essential to read a product’s reviews before making a purchase, regardless of whether it has the Frequently Returned banner or not. Reviews provide valuable feedback on a product’s quality, manufacturer, customer service, and shipping. Suppose Amazon can address the flaws of the Frequently Returned banner while still providing transparency for customers. In that case, the feature could eventually become an even more valuable tool for both businesses and consumers.
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