>Amazon most certainly does not generally operate on a consignment model No, not a consignment model. A "chargeback model".
>, but this doesn't change the fact that they still have to pay suppliers.
Not for the returned items. The returned items are deducted from the next unpaid vendor invoice. (The "vendor chargeback" or "vendor clawback" in industry parlance). All the big retailers with leverage such as Walmart/Amazon/Target/HomeDepot/BestBuy etc do this. It makes the financial hit from customer returns mostly the vendors' problem instead of Amazon's.
>, has a little to do with the fact that it has been returned (except for things that are so damaged
The new law in France was trying to stop Amazon from destroying undamaged products because of investigative reports. Again, Amazon didn't care about sending undamaged returned merchandise to the landfill by the truckloads because of the chargebacks above. In other words, Amazon never "bought" the items the customers returned.
If it was expensive items like electronics, they would ship it back to the supplier or a liquidator for resale but that often didn't happen for clothes because it wasn't worth it the extra costs to the supplier. That's why a lot of it went to the landfills.
No, not a consignment model. A "chargeback model".
>, but this doesn't change the fact that they still have to pay suppliers.
Not for the returned items. The returned items are deducted from the next unpaid vendor invoice. (The "vendor chargeback" or "vendor clawback" in industry parlance). All the big retailers with leverage such as Walmart/Amazon/Target/HomeDepot/BestBuy etc do this. It makes the financial hit from customer returns mostly the vendors' problem instead of Amazon's.
>, has a little to do with the fact that it has been returned (except for things that are so damaged
The new law in France was trying to stop Amazon from destroying undamaged products because of investigative reports. Again, Amazon didn't care about sending undamaged returned merchandise to the landfill by the truckloads because of the chargebacks above. In other words, Amazon never "bought" the items the customers returned.
If it was expensive items like electronics, they would ship it back to the supplier or a liquidator for resale but that often didn't happen for clothes because it wasn't worth it the extra costs to the supplier. That's why a lot of it went to the landfills.