To cut down on home delivery and returns costs, Amazon.com (AMZN.O) has started offering customers $10 if they opt to pick up their purchases at designated company pickup points instead of having them shipped to their home address. This move aligns Amazon with other retailers trying to reduce expenses amid sluggish consumer demand. Prime subscribers have been receiving emails from Amazon, inviting them to retrieve their orders of $25 or more from various locations, including Whole Foods, Amazon Fresh, or Kohl’s stores, and avail of the $10 incentive.According to Upstate New York-based shipping consultant Dean Maciuba, who received the offer, Amazon’s incentive for customers to use pickup points could be a significant cost-reduction measure. This move would allow Amazon to avoid expensive home deliveries, and as Maciuba pointed out, it would also help the company train customers to return items directly to Amazon. Despite requests for comment, Amazon has not responded yet.
The Information news site reported that Amazon has begun charging some customers a $1 fee for returning packages through United Parcel Service (UPS.N) stores, despite the presence of an Amazon pickup/return location closer to their delivery address. Shipping companies UPS and FedEx (FDX.N) have been advocating the use of access points, especially in remote areas where delivering to distant addresses can be expensive. Amazon, which trained customers to expect fast, free shipping and returns, is now taking measures to cut costs after a period of explosive growth. These measures include increasing the annual Prime subscription price by $20 to $139, raising minimum order thresholds for free grocery delivery, and encouraging customers to choose a designated delivery day. Amazon has also expanded same-day parcel delivery, with a fee for orders under $25.
