AMAZON’S REVERSE LOGISTIC

Video Name: How Amazon Returns Work

Video Link : https://www.youtube.com/watch?v=FPPSn-M3JQk
A huge part of a company's reverse logistics operation is effectively managing the
warehouses required to store returned products. These items can often remain in
storage for a significant amount of time as they are processed, assessed,
refurbished, recycled, or disposed of.
Amazon has an immensely popular 30-day return policy, which sees billions of
dollars’ worth of almost-new products sent back to their warehouses every year.
While Amazon repackages some products and sells them as “new” or resells them
as “used,” a substantial amount of product ends up being sold to massive liquidation
sites who sell them in bulk for a fraction of the original price.
Liquidation.com is one of Amazon’s main returns resellers, shipping $626.4 million
worth of product last year contributing to a total of $7 billion throughout the
company’s lifetime. Their business model is to buy returned products from Amazon
and other stores, put them in crates with 50 other products and sell them at 5-15% of
the market value
Amazon tries to sell their liquidized products as fast as possible to avoid paying for
storage, so they let Liquidation.com buy them for just a couple of percent of what
they were sold for a few weeks earlier. They were part of the $33.7 million
Liquidation.com paid Amazon for their products last year. Liquidation.com then
roughly categorizes the product, takes a photo and puts it in a box, then auctions the
whole box off.