You Might Be Buying Trash on Amazon—Literally

Just about anyone can open a store on Amazon.com and sell just about anything. Just ask the dumpster divers.

These are among the dedicated cadre of sellers on Amazon who say they sort through other people’s rejects, including directly from the trash, clean them up and list them on Amazon.com Inc. AMZN 0.06% ’s platform. Many post their hunting accounts on YouTube.

They are an elusive lot. Many The Wall Street Journal contacted wouldn’t give details about their listings, said they stopped selling dumpster finds or no longer listed them as new, didn’t respond to inquiries or stopped communicating. Some said they feared Amazon would close their stores.

So the Journal set out to test whether these claims were true. Reporters went dumpster diving in several New Jersey towns and retrieved dozens of discards from the trash including a stencil set, scrapbook paper and a sealed jar of Trader Joe’s lemon curd.

The Journal set up a store on Amazon to see if it could list some of its salvaged goods for sale as new.

It turned out to be easy.

Amazon’s stated rules didn’t explicitly prohibit items salvaged from the trash when the Journal disclosed the existence of its store to the company last month. The rules required that most goods be new and noted that sellers could offer used books and electronics, among other things, if they identified them as such.

“Sellers are responsible for meeting Amazon’s high bar for product quality,” an Amazon spokeswoman said. Examples the Journal presented to Amazon of dumpster-sourced listings “are isolated incidents,” she said. “We are investigating and will take appropriate action against the bad actors involved.”

She declined to comment on the Journal’s store.

Late last week, Amazon said it updated its policy to explicitly prohibit selling items taken from the trash, adding to its list of unacceptable items any “intended for destruction or disposal or otherwise designated as unsellable by the manufacturer or a supplier, vendor, or retailer.”

Control issues

Amazon exerts limited control over its third-party marketplace, which connects buyers with millions of merchants around the world. The company has said it isn’t liable for what these merchants sell, saying in court cases Amazon itself isn’t the one selling the products listed by third parties.

“We had an internal saying: Unless the product’s on fire when we receive it, we would accept anything,” said James Thomson, who helped oversee the Fulfillment By Amazon program—under which Amazon handles logistics for third-party sellers—before leaving in 2013. He is now a consultant to brands with Amazon accounts. In his view, he said, “Ultimately consumers are the police of the platform.”

The Amazon spokeswoman said Mr. Thomson’s “statements are demonstrably false.” Mr. Thomson said he stood by his assertions.

Wade Coggins, near Beaverton, Ore., said he finds items to sell on Amazon and eBay in store clearance sections, abandoned storage units and dumpsters. He said he has salvaged cardboard boxes, bubble wrap and peanuts from trash bins to package his orders.

Blemishes need to be cleaned off, he said, adding that some people shrink-wrap items to make them look more legitimate. “When you send stuff in to Amazon,” he said, “it needs to look brand new.”

Mr. Coggins identified one Amazon store and said he had another that he declined to disclose. The Amazon spokeswoman said the company couldn’t find evidence of a second store.

To list items under Amazon Prime—the subscription service offering quick, free delivery—third-party sellers send them to an Amazon warehouse where the retailer handles packaging, delivery and returns. Shipping boxes or labels often include Amazon branding. Sellers can also ship directly to customers from their homes and warehouses, qualifying for a Prime designation if they enroll in a program called Seller Fulfilled Prime.

Amazon merchant David Gracy, 49, who among other things resells new merchandise purchased from stores and brand closeouts, said his business partner in 2016 salvaged items from dumpsters including a batch of humidifiers and keyboards in Austin, Texas. Mr. Gracy’s Amazon store sold such items for more than a year under Amazon Prime, he said. He said he hasn’t sold dumpster finds since then.

He said he wouldn’t be comfortable selling certain salvaged items, such as food, on the site, but “Amazon’s not going to ask ‘Where’d you get it from? Did you get it from a dumpster?’ ”

‘DJ Co’ opens shop

Amazon said it requires sellers to provide government-issued identification and uses a “system that analyzes hundreds of unique data points to identify potential risk” and “we proactively block suspicious businesses.”

The Journal applied to open an Amazon store in September by submitting a reporter’s driver’s license and bank statement. Two days later, “DJ Co” was open for business.

An email arrived declaring: “Welcome to Fulfillment by Amazon.” The Journal signed up for a $39.99-a-month account and paid additional fees, such as for storage.

Late one night several days before the store opened, reporters with flashlights and blue latex gloves visited Clifton, Clark and Paramus, N.J., scouring dumpsters behind outlets such as a Michaels craft store and a Trader Joe’s grocery.

The bins were a humid mess of broken glass and smashed boxes, a stench of rot in the air. Several products were in original packaging, some soiled with coffee grounds, moldy blackberries or juice from a bag of chicken thighs.

Among items the reporters retrieved were a stencil set, a sheet of scrapbook paper and the lemon curd. The curd jar showed an expiration date of May 2020.

The Journal cleaned and packed the three items—bubble-wrapping and taping the curd jar—and mailed them to an Amazon warehouse in Pennsylvania in September and October. The Journal completed Amazon’s documentation requirements by specifying the items’ universal product codes, the numbers next to bar codes on most products.

Amazon didn’t ask about the inventory’s origins or sell-by dates.

The Journal’s dumpster finds were soon up for sale with an Amazon Prime logo, available to millions of shoppers, including the listing for “Trader Joe’s Imported English Authentic Lemon Curd 10.5oz” at $12.00.

Products the Journal found in dumpsters, listed on ‘DJ Co’ on Amazon and sent to an Amazon warehouse.

After a later dumpster dive, the Journal was able to go through almost all of the listing process with salvaged breath mints, sunflower seeds, marmalade, crispbread, fig fruit butter, olives, a headband and a Halloween mask—stopping just short of shipping them to the Amazon warehouse, which is required for an item to appear for purchase on the site.

To list a sunscreen lotion, Amazon asked for a safety-data sheet. Attempts to list a protein powder, a pea-powder dietary supplement and a face sheet mask—all from the dive—elicited a request from Amazon for proof of purchase.

A Trader Joe’s spokeswoman, Kenya Friend-Daniel, said the grocer doesn’t approve of its products’ sale on Amazon and that its policy is to discard an item only if it isn’t fit for sale. Michaels spokeswoman Mallory Smith said: “We do not approve of the sale of Michaels products by unauthorized third party sellers.”

‘Broken things’

Amazon uses warehouse workers to identify problematic products, and computers direct workers to make spot checks. Some former employees said the daily volume is often too large to handle, with workers charged with scanning sometimes hundreds of items an hour.

“I myself ignored broken things more often than not,” said Chris Grantham, who held several roles in Amazon’s fulfillment center in Ruskin, Fla., until 2017, including quality-assurance inspector.

For further reading follow link

Source: The Wall Street Journal

0 Reviews

Write a Review

Vinkmag ad

InvestorTalks

Read Previous

First, the Smartphone Changed. Then, Over a Decade, It Changed Us.

Read Next

Make Your Job Application Robot-Proof

Leave a Reply

Your email address will not be published. Required fields are marked *