Amazon Is Making It Easier for Sellers to Donate Returned or Unsold Items Instead of Trashing Them

After mailing back an unwanted Amazon order or bringing it to a drop-off location, you may assume your return will find its way to a good home. But not every item returned to Amazon is re-listed on the website. Many third-party sellers working through Amazon simply toss returned products in the trash along with any surplus goods they can't sell. That's about to change: As CNBC reports, the retailer will make its new Fulfillment by Amazon (FBA) Donations program the default option for independent shops based in the U.S. and the UK.

Starting in September 2019, sellers that have unwanted returns or unsold items sitting in an Amazon warehouse can depend on the company to donate them to a good cause. In the U.S., products that are eligible for donation will be sent to various nonprofits through a charity group called Good360, and in the UK, groups including Newlife, Salvation Army, and Barnardo will distribute the goods.

“We know getting products into the hands of those who need them transforms lives and strengthens local communities,” Alice Shobe, director of Amazon in the Community, said in a statement. “We are delighted to extend this program to sellers who use our fulfillment services.”

Amazon charges independent sellers 50 cents to ship unsold items back to them and just 15 cents to throw them away, meaning that donating or trying to resell returned items wasn't always cost-effective for businesses. Amazon reportedly wasted 293,000 products over a nine-month period in just one French distribution center alone.

The company now aims to incentivize sellers to donate their unsold and returned inventory by making it the cheaper option, according to sellers who spoke to CNBC. As part of this program, Amazon will also manage the logistics and work with charities in an effort to "streamline the donation process for independent sellers."

The Fulfillment by Amazon Donations program will be the default for U.S. and UK sellers starting on September 1, but stores will still have the opportunity to opt out if they wish.