Amazon bins 130000 products a week from one distribution center alone.

I'm curious on the cost of warehouse space

How long does say a £5 item have to sit in a warehouse before its cost more than its worth
How big is it, how much did it cost to buy and what is the cost to store?

An item with a low cost and high profit margin but is bulky in an expensive warehouse, you might dump it after a few months/set amount of stock is sold (or try to reduce the sale price to clear the last stock)
Something with a finite appeal, say Holiday related or related to a Sporting event you might decide to dump at the end of the season or when England get knocked out of the World cup in Round 1.

Something with a high profit margin, low cost, small, and regular sales throughout the year you might decide to keep available for a very long time, especially if you're able to combine it's storage with other items so it's just filling in a gap between them and effectively not costing you anything to store.

It's also worth remembering that some items need better storage conditions than others so may be much more expensive to store*, or might "expire" so you have to clear them within a certain time.

In short it's a balancing act based on is it worth continuing to pay and hopefully get more profit, or is it time to call it a day and write off the cost of the remaining items and their storage to date.
I suspect every company and individual has their own criteria based on things like how much room they've got in the warehouse and how much it costs.
The likes of Poundland from memory specialise in basically saying to companies like Tesco/Morrisons/Administrators of retailers that go bust "we'll give you X% of your cost per item and collect it" which means that a company might decide to clear those £5 items sooner rather than later to free up space in their warehouses knowing that at least they're not having to pay for neither the storage or disposal costs but are getting something back (even if it's pennies in the pound).

It's much the same as how stores decide when and where to reduce their stock, and why some stores will end up practically giving stuff away** after a few months, others especially that specific type of family owned hardware store that's been in business for decades (and own the building and freehold so low overheads) might have odds and ends of stock still on the shelves or in odd corners that have been there for years (or decades), because they don't need the room so it's costing them nothing to keep them and people know that these sorts of stores can be the best place to get something odd.

*Paving slabs and garden ornaments might be fine in an open air barn with little security, books and consumer electronics tend to need to be stored in a dry environment preferably above freezing and for consumer electronics often with a lot of security.

**Really giving it away - I've seen pallets of past it's use by concrete/plaster by the door with a note to help yourself (it would have cost the retailer a lot to dump it).
 
How long does say a £5 item have to sit in a warehouse before its cost more than its worth
the calculation for it is probably really weird and done by an algorithm.

I'd imagine something that makes a profit could be considered a loss maker if it's taking up space a more profitable and better selling item could utilise
 
Mate used to work for Burberry and all the returns to the warehouse where he worked got burned. What a waste when there are folk in the world who can't afford new clothes at all. Not like I would be seen dead in Burberry.
 
Ebay is terrible though. Full of sellers pretending to be in the UK when the item is actually coming from china. Pretty much nothing is available on a first class delivery, eBay deems 2nd class to be fast. The filters are horrendous too. It's just a poor experience overall IMO.

Problem with delivery has got worse with the new payment system. Sellers are holding off sending items for 3-5+ days extra because in most cases its taking over 3 days just to get paid for said item. Been following one of their community threads and loads of people posting about how shocking the new system is.

I'm curious on the cost of warehouse space

How long does say a £5 item have to sit in a warehouse before its cost more than its worth

Wasnt there a guy on BBC or ITV news being interviewed this week who worked for a company that builds and supplies warehouses and he was saying they cant build them fast enough they've got orders in for the next 5 years and the price of existing warehouse space has shot up 5x in price.
 
[QUOTE="varkanoid, post: 34911580, member: 66226"

Wasnt there a guy on BBC or ITV news being interviewed this week who worked for a company that builds and supplies warehouses and he was saying they cant build them fast enough they've got orders in for the next 5 years and the price of existing warehouse space has shot up 5x in price.[/QUOTE]


Yup, I saw that as well.

IIRC in the run up to the end of the transition period for leaving the EU companies were also complaining that if they'd known we'd be leaving the EU without any effective free trade deal they'd have been building them from the time of the vote in preparation (especially refrigerated/frozen storage facilities) as it takes something like an average or 2-5 years to buy the land, get permission and build them, so we were effectively extremely short before covid, and covid has made it worse because of the increase in online shopping.
 
Amazon dropped the price of something I paid £684 for the day later to £499, I thought getting credited the difference would be very simple, but they want me to return and reorder which seems ridiculous. I wonder if the return would go to one of these lots meaning their policy actually loses them money.
 
Amazon dropped the price of something I paid £684 for the day later to £499, I thought getting credited the difference would be very simple, but they want me to return and reorder which seems ridiculous. I wonder if the return would go to one of these lots meaning their policy actually loses them money.
Yeah I find they never want to just refund the difference so ive sent back so much stuff Ive used for a week then its come up cheaper. Madness
 
Amazon dropped the price of something I paid £684 for the day later to £499, I thought getting credited the difference would be very simple, but they want me to return and reorder which seems ridiculous. I wonder if the return would go to one of these lots meaning their policy actually loses them money.

Most online retailers don't refund differences if prices drop within the return period. Amazon used to do this, but stopped doing so some time ago.

It seems ridiculous compared to the fact that a customer can just return and refund what they paid for and buy a new one at the reduced price.

When I've queried this with multiple retailers, including OCUK, the defence I've been given multiple times is 'If the price had gone up, would you be calling us to pay us more?'. Also 'your batch cost more than than the new batch that arrived on the same day / day after yours was dispatched'.

Theres also this new video of in date food returns marked as 'destroy':


Personally I've never returned food, earlier this year I got a full refund without needing to return on 96 creme / caramel eggs that Royal Mail decided to dump in my bin without ringing the bell. I still ate them but ranted about them putting a food order in the bin and Amazon refunded it.

If I had returned them, they would have been destroyed anyway.
 
Amazon are dangerous, some punk hacked my Amazon account and spent a fortune with my saved card and Amazon said my account was not hacked and that i had done it.

If the retailer denies that any criminal activity took place then its a total nightmare to get a refund from the bank or the retailer.

they have self service lockers so the punk just showed up with a code and annonomously took the goods ( with a hood and mask for the CCTY, and probably a crappy old push bike )
 
Amazon are dangerous, some punk hacked my Amazon account and spent a fortune with my saved card and Amazon said my account was not hacked and that i had done it.

If the retailer denies that any criminal activity took place then its a total nightmare to get a refund from the bank or the retailer.

they have self service lockers so the punk just showed up with a code and annonomously took the goods ( with a hood and mask for the CCTY, and probably a crappy old push bike )
Did you provide them with a crime reference from the police?
 
Did you provide them with a crime reference from the police?

No, but Amazon security team were near impossible to comminicate with and they asked me zero questions.

You have to talk to customer service and they relay your message and say the security team will email you in 48 hours.

They emailed me with a super unhelpful short message.

I bothered their customer services about 20+ times in the end and they finally broke and refunded after about a week
 
Theres also this new video of in date food returns marked as 'destroy':
you say "returns" so what's to stop some madman injecting something into one of these "unopened returns" or tampering with them in some other way?

surely it's a massive risk amazon has to consider when it's something someone will ingest
 
you say "returns" so what's to stop some madman injecting something into one of these "unopened returns" or tampering with them in some other way?

surely it's a massive risk amazon has to consider when it's something someone will ingest

Are you even aware of food donation?

How is food donation allowed then when anyone can tamper with food before donating it?

How do you know the people that have made the food in the first place didn't tamper with it? Or when you buy from a takeaway?

There's a risk of this in all such situations. At the least give it away to people willing to have it? I'd take it.
 
Most online retailers don't refund differences if prices drop within the return period. Amazon used to do this, but stopped doing so some time ago.

It seems ridiculous compared to the fact that a customer can just return and refund what they paid for and buy a new one at the reduced price.

When I've queried this with multiple retailers, including OCUK, the defence I've been given multiple times is 'If the price had gone up, would you be calling us to pay us more?'. Also 'your batch cost more than than the new batch that arrived on the same day / day after yours was dispatched'.

Theres also this new video of in date food returns marked as 'destroy':


Personally I've never returned food, earlier this year I got a full refund without needing to return on 96 creme / caramel eggs that Royal Mail decided to dump in my bin without ringing the bell. I still ate them but ranted about them putting a food order in the bin and Amazon refunded it.

If I had returned them, they would have been destroyed anyway.

Indeed, I got the new phone now, they paid for return shipping, and they spent money to send me the replacement all because they dont want to process account credit. They must be financially out of pocket especially if they dont sell the phone I sent back as new.

My issue was the size of the price drop, if it went down by a few % no biggie, but it went from £684 to £500 all in one go within 24 hours. I suspect my purchase may have even triggered it as perhaps it moved onto stock from a different shipment at lower purchase price for them.
 
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