What is the label for Amazon's high return rate products? What are the effects?

Amazon has reportedly begun displaying the label "Frequently Returned Items" on some of its product pages in an effort to discourage picky customers, saving them money and time. Today we will take a closer look at the high return rate product label and the impact of being labeled with it.

1. What is a high return rate label?

Amazon will display a "High return flag" on items that have a higher-than-average return rate. In other words, Amazon will calculate the average return rate of the product category in advance, and once the seller's product return rate exceeds the average, it is likely to be marked as a high return rate product.

2. How to determine the high return rate?

The judgment of the high return rate label may follow the following three rules:

▪️ If the seller's product return rate is higher than the average return rate, it will be monitored by Amazon

▪️ If the bottom 25% of the average return rate is above average, it will be labeled "High return rate", which will be displayed to all buyers when placing orders

▪️ For brands, a single product must have sold more than 250 units in the past year to be considered for inclusion in this labeling system, so the products affected are mainly those with high sales and high return rate.

3. What are the effects of being labeled as a "high return rate product"?

▪️ Once the "high return rate" label is marked, all buyers can see this label when placing orders, and buyers will greatly discount the impression of the marked product, and the order volume of the marked product will fall all the way. This is undoubtedly a fatal blow to the brand side

▪️ Sellers need to spend more time dealing with products with high return rate, which invisibly increases the workload

▪️ Amazon will determine the seller's store ranking based on the seller's return rate and other indicators. If the return rate is high, the store ranking may decline.