Part 9/13:
To monitor and enforce pricing policies, Amazon utilizes UPC codes—standardized product identifiers—flagging certain sellers for undercutting prices. This enforcement often involves warnings or disqualification from the “buy box,” the prominent purchasing option that accounts for about 98% of sales.
The Challenge of Returns and Sustainability
One of the most pressing issues in Amazon’s apparel sector is the high rate of returns. Clothing and footwear, especially, experience substantial return volumes driven by sizing uncertainties, style changes, or consumers experimenting with different options. These returns generate immense reverse logistics costs for sellers and often end up as landfill waste, burned, or energy-recuperated—contributing to environmental concerns.