Amazon brings forth plans of reselling overstocked and returned items following the backlash as UK’s ITV exposed its poor waste management in late June. The retail giant presented 2 programs to accommodate such items in its warehouses. The FBA Grade and Resell, and the FBA Liquidation.
Amazon claims to make the recovery of funds easier for third-party sellers through the two programs. The FBA Grade and Resell scheme is for the sale of overstocked merchandise to wholesalers. Instead of finding their way to landfills and recycling sites, the unsold items will either be donated to charity or sold off to wholesalers at a compromised rate. It is an attempt to salvage at least some returns for overseas businesses having their stocks in Amazon warehouses.
The second program, FBA liquidation, intends to resell returned goods at cheaper rates. Defected items will receive a rating of Like New, Very Good, Good, or Acceptable by Amazon. The rating will be the benchmark for setting a price for the returned goods. Consequently, it will reduce the number of products going to waste when they still have the potential for use.
Amazon’s Waste Management Programs: Why Now?
Amazon’s waste management protocols come immediately after UK’s ITV exposed its Dunfermline warehouse in late June. Following the report, a heavy backlash came into action by various communities, including environmentalists. Considering the UK will host the world’s largest-ever Climate conference only forty miles away from the warehouse in Glasgow calls for even serious attention.
The UK’s premier, Borris Johnson responded in an interview, “We want to see more reuse, we want to see more recycling but above all, we want to stop people using things that are going to be, ultimately, polluting our seas, our world and that means cutting down our use of plastics” following ITV’s reveal of Amazon’s warehouse.
Laptops, PC Drives, Earphones, Facemasks, Smart TVs, Drones, and many other sealed top-of-the-line products were discovered on their way to landfill sites. Amazon benefits from hosting a large scale of supplies in its warehouses, for which sellers have to pay a marked fee. The longer the stock goes unsold, the more expensive it gets to keep them in the warehouse. And as that happens, it is very likely that most of these goods are thrown to waste.
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An ex-employee of Amazon, withholding his anonymity told ITV, “From a Friday-Friday, our target was to destroy 130,000 items every week.” He further shared that over 50% of the stock labeled for destruction was sealed and never opened. Following Boris Johnson’s statement, Greenpeace’s Sam Chetan also fired rounds at Amazon by saying, ” It’s an unimaginable amount of unnecessary waste, and just shocking to see a multi-billion dollar company getting rid of its stock in this way.