Amazon to Handle Returns and Refunds under USD76 in India

India: In order to make reverse logistics and refunds hassle-free, Amazon India has launched a new program under which the company plans to handle refunds and returns under USD76 itself on behalf of sellers using its logistics services. Under the program called 'Automated Returns', the sellers can focus on their core business while Amazon India will handle the returns and refunds for all their orders and refunds. The sellers will be able to issue manual refunds for orders exceeding USD76 in value. This program is expected to start from 1st September 2016.

Recently, online sellers have been complaining of high rate of merchandise returns and the operational challenges faced by them especially, in case of categories such as electronics, mobile phones, mobile accessories, apparel and jewelry, where the rate of return is as high as 50%. This has forced the ecommerce companies to reduce the time period in which the customer can return their products leading to more stringent return policies.

According to TechSci Research, the initiative taken by the Amazon India is likely to benefit its sellers, as their business is being affected due to increasingly high operational costs because of the return policies. Other rival companies have also improved their return and refund polices to satisfy their customer base and increase their brand loyalty.

According to a recent report published by TechSci Research, “India E-commerce Market Forecast & Opportunities, 2020”, the country’s e-commerce market is projected to grow at a CAGR of more than 36% during 2015-2020. E-services segment, which comprises online travel, online payments, online classifieds, etc., is expected to continue its domination through 2020. However, the e-tail segment that includes electronics, apparels & accessories, health and personal care, etc., is expected to witness significantly higher market growth compared to e-services segment over the next five years. During 2015-20, the western region is expected to remain the largest e-commerce market in the country. Major players operating in India’s e-tail market include Flipkart, Snapdeal and Amazon.