The Amazon Free Shipping Hack
That Kills Your Profits
It's Why I Only Let Customers to Buy One Item at a Time
In the world of online retail, where convenience often comes at the cost of unseen consequences, I’ve made a deliberate choice to limit how customers purchase from my Amazon store. This decision isn’t about inconvenience or arbitrary rules; it’s about standing up for the small businesses that form the backbone of platforms like Amazon, and shedding light on a practice that often goes unnoticed: the impact of multiple-item purchases on these small enterprises.
The Amazon System: Who Really Owns the Inventory?
Contrary to popular belief, Amazon doesn’t own the majority of the products listed on its website. Instead, a significant portion of inventory comes from small business owners and independent sellers. These individuals invest their resources, time, and passion into crafting and curating products that enrich the marketplace. When you purchase from my store—or any other small business on Amazon—you’re supporting these entrepreneurs, not just a faceless corporation.
The Scam That Harms Small Businesses
Here’s where the issue arises: the perception among some customers that they’re outsmarting Amazon by exploiting loopholes in the system, such as purchasing multiple items to qualify for “free shipping” without paying for a Prime membership. This is usually acheived by ordering $35 in one order — and then returning most of them so they feel like they are getting “free shipping” no matter how small their order.
While this might seem like a harmless trick to save a few dollars on shipping costs, it actually has severe repercussions for small business owners.
When customers engage in these practices, they unwittingly funnel more money into Amazon’s coffers while burdening small businesses with increased shipping and return costs. Amazon takes a cut of every transaction, including returns, which means that while Amazon profits regardless, it’s the small business owner who ends up footing the bill for shipping and handling fees both ways and potentially loses out on revenue from returned items.
The Numbers Don’t Lie
Through careful analysis, I’ve observed that I can sometimes have over 80% of multiple-item purchases result in partial returns. This statistic is not just a number; it represents the real financial strain that small businesses endure. For many of these entrepreneurs, particularly those in their first year of operation, the difference between profit and loss can be razor-thin. Practices that exacerbate return costs can push them over the edge, jeopardizing their ability to sustain and grow their businesses.
The Path Forward: Advocating for Fairness
By implementing a policy that restricts customers to purchasing one item at a time, I’m taking a stand against this harmful cycle. It’s not about restricting consumer choice or my resenting someone getting Amazon free shipping, but rather about fostering a fair and sustainable marketplace where small businesses can thrive. By encouraging conscientious purchasing habits, I hope to educate customers about the impact of their decisions beyond the checkout cart.
Ironically, this limit has not hurt any part of my business. Since instituting this change 60 days ago, I’ve seen an increase in my total units sold. Does scarsity make the heart grow fonder? Or am I just offering a great product at a value price? There is no way to know. But I do know that my returns have stopped. Down to zero last month.
Why It Matters
Supporting small businesses isn’t just a feel-good sentiment; it’s crucial for maintaining a diverse and innovative marketplace. When small businesses succeed, they contribute to job creation, economic growth, and community resilience. Conversely, when they struggle, the consequences ripple outward, affecting suppliers, artisans, and local economies.
As a consumer I love Amazon free shipping too. But I won’t order something with the intent to return it and try to scam Amazon or anyone else. Ultimately Amazon free shipping is baked into the price you pay, whether that is through a prime membership or the quantity you are ordering. Ordering and returning is bad for the enviroment, small businesses and even consumers who are taught cheating the system is okay.
Should You Follow My Lead?
That really depends on your niche and how your customers behave on a generalized basis. For me, the decision to limit purchases to one item at a time isn’t just a business strategy; it’s a moral imperative to protect the livelihoods of those who pour their hearts into creating unique and valuable products and making the marketplace less “scammy” for everyone. Instead of building fraud into my profit margins and just accepting it as human nature, I’m making the marketplace a better place for all customers. Or at least I’m trying.
