Returns on Amazon are free and easy for shoppers, but they’re risky and expensive for the small businesses that sell a majority of the goods on the world’s biggest e-commerce site. Returns have driven some sellers to exit the popular Fulfillment by Amazon program, while others told CNBC they’d like to leave the platform altogether.
At the heart of the problem is a big rise in returns fraud, which has led to customers mistakenly receiving used products when they ordered something new. In two particularly egregious examples involving baby products described to CNBC, Amazon sent customers used diapers and a chiller with someone else’s rotten breastmilk inside.
“I really don’t think that consumers understand how many small businesses are on Amazon and how their return habits affect small businesses and families like mine,” said Rachelle Baron, owner of Beau and Belle Littles, which sells reusable swim diapers on Amazon.
Baron said her business tanked after a return incident with Amazon. The e-commerce platform shipped soiled swim diapers to customers after the used baby products had been returned to Amazon, Baron said.
“There was actually two diapers that were sent out that were poopy,” she said.
In 2024, nearly 14% of all U.S. retailreturns were fraudulent, up from 5% in 2018, according to a report by the National Retail Federation. In total, the report found that returns cost retailers $890 billion in 2024.
Amazon started charging sellers in its fulfillment program (FBA) a new fee in June 2024 for items that exceed certain return rate thresholds. Sellers who sign up for FBA rely on Amazon for logistics, including shipping, packing and returns.
In September, a couple months after the fee went into effect, e-commerce group Helium 10 saw return rates for U.S. Amazon sellers drop nearly 5%.
“It’s forcing the seller to have higher quality listings and higher quality products,” said Helium 10 General Manager Zoe Lu.
Amazon has alsostarted adding a warning label to some “frequently returned items,” which could be contributing to the dip.
Rising prices
However, the new fee may also be leading to rising prices.
One survey by e-commerce analysis company SmartScout found that 65% of sellers said they raised prices in 2024 directly because of Amazon fee changes. Other sellers told CNBC returns fraud is the reason they’ve raised prices.
In total, CNBC talked to seven Amazon sellers to find out how they’re handling the rising cost of returns.
“We’re running at about just over 1% net profit on Amazon, totally due to fraud and return abuse,” said Lorie Corlett, who sells Sterling Spectrum protective cases for hot wheels. She said her return rate is 4% on Amazon and only 1% on other marketplaces like Walmart. “It’s really Amazon that’s accountable at the end of the day. People would stop doing it if Amazon held them accountable.”
Amazon told CNBC it has no tolerance for fraudulent returns and that it takes action against some scammers. Those measures include denying refunds and requiring customer identity verification.
Mike Jelliff sells professional music gear through his GeekStands brand on Amazon and eight other marketplaces. He said his return rate on Amazon is three times higher than the average he sees elsewhere.
“On eBay, we’re allowed to block specific customers out,” Jelliff said. “But on Amazon, that customer is still allowed to repurchase from us.”
Jelliff showed CNBC the system of about 40 cameras he’s installed in his Tyler, Texas, warehouse to track every outgoing item, incoming return and unboxing. He uses the images when filing appeals with Amazon, including when customers request refunds claiming they never receive an item. He keeps a blacklist of repeat offenders who commit this kind of fraud and those who return used and damaged items, which become a total loss for him.
Amazon has made some improvements to its returns process, said Jelliff, who doesn’t rely on FBA. This includes Amazon allowing small businesses to make multiple appeals when fighting a fraudulent return. Amazon has also let Jelliff opt-out of automatic return labels for items above $100 starting in 2023, and his return rate has been dropping since.
Mike Jelliff at his GeekStands warehouse in Tyler, Texas, on June 6, 2025. Jelliff sees three times more returns of his professional music gear on Amazon, compared to the average on other marketplaces like eBay and Walmart.
Jacob Schatz
Why returns are destroyed
Figuring out which returns are fraudulent and which are ready for re-sale is labor-intensive and item specific, experts said. That creates plenty of room for error.
“Because it’s such a large operation, things are missed,” said Lu of Helium 10. “I think they’re probably missed on the margins, but these stories are very impactful because it is such a reckoning for the brand.”
Ceres Chill founder Lisa Myers, who once relied on Amazon to handle returns for her business as part of FBA, has one of these stories.
In 2023, Amazon sent one of Ceres Chill’s products to a customer with someone else’s rotten breastmilk inside, said Myers, adding that the customer wrote a review saying, “she will never forget that smell.”
“To have something, and I don’t mean to be dramatic, but dangerous, somebody else’s bodily fluids in your kitchen rotting in something that you had intended to use for your child is unacceptable,” Myers said. “That’s the moment I broke down crying and just sat down and thought, I have no idea how this could have happened.”
Myers said she left FBA after the incident, leaving behind benefits like having her products labeled with Amazon’s Prime badge.
“It hurts our business to not participate in Fulfilled by Amazon,” Myers said.“It’s just we’re not willing to, we will never put profit over the safety and, frankly, mental health of our customers.”
Instead, Myers outsources all her returns to baby resell specialist Goodbuy Gear, which is on track to re-sell 200,000 returned baby products this year.
Re-selling responsibly
Kristin Langenfeld started GoodBuy Gear when she was a new mom struggling to find a good quality, used jogging stroller.
“We’ve spent the last nine years building out a database that has all of the products and the variations, the common issues, the recalls,” Langenfeld said. “For some of these, there’s 40 points that we inspect on the item itself, and it’s really complicated.”
Langenfeld showed CNBC the process at her warehouse in Malvern, Pennsylvania, where each item is inspected for about 15 minutes and is typically handled by at least four employees. The resource intensive process is paying off. She says 33 new sellers signed up in 2024, three times more than the previous year. And with business growing 50% year-over-year, she’s upgrading to a bigger warehouse in Columbus, Ohio.
She was inspired to handle returns after visiting a major retailer’s returns warehouse five years ago.
“Taped on the floor were signs that said ‘incinerate,’ ‘destroy,'” she said.
Returns generated an estimated 29 million metric tons of carbon emissions in 2024, and 9.8 billion pounds of returns ended up in landfills, according to reverse logistics software provider Optoro.
Amazon has faced criticism for destroying millions of pounds of unused products. In 2022, Amazon told CNBC it was “working towards a goal of zero product disposal,” but wouldn’t give a timeline for that ambition. Three years later, that goal is still in the works, with Amazon telling CNBC in a statement, “The vast majority of returns are resold as new or used, returned to selling partners, liquidated, or donated.”
In 2020, Amazon added two new options for sellers to re-home returns. “Grade and Resell” allows all U.S. FBA sellers to have Amazon rate the return and mark it as “used” before re-selling it. FBA Liquidation allows sellers to recoup some losses by offloading palettes of goods for re-sale on the secondary market through liquidation partners like Liquidity Services.
There’s also an FBA Donations program that’s been around since 2019, allowing sellers to automatically offer eligible overstock and returns to charity groups through the non-profit Good360. Amazon told CNBC these seller programs give a second life to more than 300 million items a year.
For shoppers wanting to keep returns from incineration or landfills, Amazon also has options.
Amazon Resale has used and open-box goods, Amazon Renewed sells refurbished items and Amazon Outlet sells overstock. Daily deal site Woot!, bought by Amazon for $110 million in 2010, also sells scratched and dented items. Customers can also trade in certain electronics, like Amazon devices, phones and tablets, for Amazon gift cards or send them to the company’s certified recycler.
“I hope the change that we’re able to make as a country is that we stop making crap,” Langenfeld said. “We should make high quality products that are meant for resale.”
Venezuelan Bolivar and U.S. Dollar banknotes and representations of cryptocurrency Tether are seen in this illustration taken Sept. 8, 2025.
Dado Ruvic | Array
Tether, the issuer of the largest stablecoin, is planning to raise as much as $20 billion in a deal that could put the crypto company’s value on par with OpenAI, according to a report from Bloomberg News.
The crypto company is looking to raise between $15 billion and $20 billion in exchange for a roughly 3% stake through a private placement, the report said, citing two individuals familiar with the matter. The transaction would involve new equity rather than existing investors selling their stakes, the people told the news service.
The report said that one person close to the matter warned that the talks are in an early stage, which means that the eventual details, including the size of the offering, could change.
However, the deal could ultimately value Tether at around $500 billion, according to the report. That would mean the crypto giant’s valuation would rival some of the world’s biggest private companies, including SpaceX and OpenAI. OpenAI’s fundraising round earlier this year valued the tech company at $300 billion.
Tether, which was once accused of being a criminal’s “go-to cryptocurrency,” has been furthering its plans to return to the U.S. in recent months, given President Donald Trump’s pro-crypto stance. The company earlier this month named a CEO for its U.S. business and launched a new token for businesses and institutions in the U.S. called USAT, which will be regulated in the U.S. under the GENIUS Act.
Stablecoin USD Tether (USDT) is pegged to the U.S. dollar with a market cap that recently surpassed $172 billion. In second place is Tether rival Circle’s USDC stablecoin, which is worth about $74 billion.
A person walks by a sign for Micron Technology headquarters in San Jose, California, on June 25, 2025.
Justin Sullivan | Getty Images
Micron reported better-than-expected earnings and revenue on Tuesday as well as a robust forecast for the current quarter.
The stock rose in extended trading.
Here’s how the company did in comparison with the LSEG consensus:
Earnings per share: $3.03, adjusted, vs. $2.86 expected
Revenue: $11.32 billion vs. $11.22 billion expected
Micron said revenue in the current period, its fiscal first quarter, will be about $12.5 billion, versus the $11.94 billion average analyst estimate per LSEG.
The company said it had $3.2 billion, or $2.83 per share in net income, versus $887 million, or 79 cents in the year-ago period.
Micron shares have nearly doubled so far in 2025. The company makes memory and storage, which are important components for computers. Micron has been one of the winners of the artificial intelligence boom. That’s because high-end AI chips like those made by Nvidia require increasing amounts of high-tech memory called high-bandwidth memory, which Micron makes.
“As the only U.S.-based memory manufacturer, Micron is uniquely positioned to capitalize on the AI opportunity ahead,” Micron CEO Sanjay Mehrotra said in a statement.
Overall company revenue rose 46% on a year-over-year basis during the quarter.
Micron’s largest unit, which sells memory for cloud providers, reported $4.54 billion in sales during the quarter, more than tripling on a year-over-year basis.
However, the company’s core data center business unit saw sales decline 22% on an annual basis to $1.57 billion in revenue.
Google-owned YouTube on Tuesday said it will soon allow previously banned accounts to apply for reinstatement, rolling back a policy that had treated violations as permanent.
The change applies to channels removed for posting Covid-19 or election-related misinformation, according to a letter fromAlphabet lawyer Daniel Donovan to House Judiciary Chair Jim Jordan, R-Ohio. Previously, those types of offenses carried lifetime bans.
“Today, YouTube’s Community Guidelines allow for a wider range of content regarding Covid and elections integrity,” Donovan wrote.
YouTube wrote on X that it will be a limited pilot project open to a subset of creators as well as channels that were terminated under policies the company has since retired. YouTube also said its new reinstatement program will launch soon.
Among channels previously banned under those rules were some associated with Deputy FBI Director Dan Bongino, former Trump chief strategist Steve Bannon and Health and Human Services Secretary Robert F. Kennedy Jr. It’s not yet clear whether those channels will be reinstated.
This move follows mounting Republican pressure on tech companies to reverse Biden-era speech policies on vaccine and political misinformation. In March, Rep. Jordan subpoenaed Alphabet CEO Sundar Pichai, alleging YouTube was a “direct participant in the federal government’s censorship regime.”
In 2021, YouTube said it would remove content that spread misinformation about all approved vaccines.
Donovan wrote that during the pandemic, senior Biden administration officials pressed the company to remove certain Covid-related videos that did not technically violate YouTube’s policies.
In the letter, Donovan said this pressure was “unacceptable and wrong.”
YouTube ended its stand-alone Covid misinformation rules in December 2024, according to Donovan’s letter.
YouTube “will not empower third-party fact-checkers” to moderate content and will continue to enable “free expression” on the platform, Donovan wrote. While Donovan writes that YouTube has not used fact-checkers, the platform has produced programs that are meant to label context on videos.
Similarly, Meta said in January that it had eliminated its fact-checking program on Facebook and Instagram.
YouTube has a feature that will display information panels with links to independent fact checks under videos. The feature says it provides more context on videos across YouTube with information from third-party sources.
In 2017, Google launched a fact-checking tool that would display labels on search and news results.