5 votes

On Amazon's return and refund algorithms

3 comments

  1. [3]
    JXM
    Link
    I'm sure the model is more complicated than that. Amazon has data from billions of transactions and some very smart people there. So I assume they have enough data that they can come up with a way...

    I'm sure the model is more complicated than that.

    Amazon has data from billions of transactions and some very smart people there. So I assume they have enough data that they can come up with a way more complicated algorithm that takes tons of other factors into account (i.e., which shipper did we use and what is the percentage of packages that get stolen when we use that carrier? What are our overall numbers from that shipper this month? Are we above or below average?) I can think of a million different things they could use if they wanted to.

    Of course, I could be completely wrong and they are just taking the Walmart approach and just accepting returns in all but the most egregious situations.

    I haven't done very many returns to Amazon, but I've never had an issue with them. It is a lot more inconvenient now that I have to go to the local Whole Foods instead of shipping it back though.

    3 votes
    1. [2]
      stu2b50
      Link Parent
      Really? The local partnerships (well, they own wholefoods) is what made Amazon returns killer for me. They have one set up in a Kohls <3 minute drive away from where I live, and it's made Amazon...

      It is a lot more inconvenient now that I have to go to the local Whole Foods instead of shipping it back though.

      Really? The local partnerships (well, they own wholefoods) is what made Amazon returns killer for me. They have one set up in a Kohls <3 minute drive away from where I live, and it's made Amazon returns almost like Steam returns (if Steam let you return things for 2 weeks rather than 5 minutes of gameplay).

      I go onto Amazon, click return, I get a QR code, drop off the product at Kohls, and I usually have the credit by the end of the day. Whole ordeal takes <10 minutes, and involves talking with no one (to actually do business logic, that is - I don't count saying hi to whoever is at the return counter), no questions asks, no costs. I don't have to argue with CS, or email anyone, or print out a shipping label myself, and the whole process ends within a day.

      That may be because I am, according to the OP, a high LTV customer, but regardless it's definitely made me lean towards buying things on Amazon if possible if I'm buying something online, since not having to worry about shenanigans while doing returns is a huge sigh of relief.

      5 votes
      1. JXM
        Link Parent
        I've had the same experience, with the refund usually showing up within 24 hours. It doesn't take long to actually do the return once you're at the store but the two drop-off points in my town are...

        I've had the same experience, with the refund usually showing up within 24 hours. It doesn't take long to actually do the return once you're at the store but the two drop-off points in my town are a Kohls and a Whole Foods. Both are all the way across town in an area that always has relatively heavy traffic, so it's a pain to get to them.

        3 votes