At the Amazon fulfillment center Romeoville in Illinois, a worker packs a customer's order. Scott Olson/Getty ImagesAccording to a recent report, 130,000 items are "destroyed" each week in an Amazon warehouse in the UK.An ex-worker at the warehouse claimed that half of those items were still wrapped in shrink-wrap.Insider was told by a retail analyst why Amazon is more profitable scrapping them than selling them.Check out more stories from Insider's business page.Recent reports exposing the company's practices in disposing of goods have exposed its disposal practices to severe scrutiny.ITV News reported on the fact that 130,000 items are "destroy" in a warehouse in Dunfermline (Scotland). This article was based on a French report that stated that Amazon had thrown away 3,000,000 items in France over nine months.ITV was told by an ex-Amazon employee that about half of the products marked "destroy" were brand new and in shrink-wrap. Rest are returns, and in good condition.Why does Amazon discard products that it could still sell?Global Data's retail analyst Patrick O'Brien said that Amazon is a specialist in selling third-party products.Amazon Marketplace is a major source of its retail business. Marketplace Pulse analysts estimated that third-party products accounted for $300 billion of the $490 billion total site sales in 2020.O'Brien stated to Insider that Amazon's business has been dominated by the sale of third party stock. Amazon charges a commission for sales but also charges for a variety of services. He explained that this includes the cost per unit to store and return items to sellers or to dispose of unsold products.If a product isn’t selling on Amazon, you can pay Amazon to get rid.O'Brien stated that "the problem for many sellers of Amazon is that if they don't sell their goods, they face the possibility of having either to continue to pay rent or make a one-off payment to return them or dispose of them."Continue the storyO'Brien said that retailers wouldn't normally have their items returned unless they intended to dispose of them. He explained that it is more economical to pay Amazon to dispose off the items than to have them returned, and still have to dispose them.Insider was told by an Amazon spokesperson that domestic returns costs for all products are lower than disposal fees, but that there is not a huge difference in those costs. It costs only 4 cents less to send Amazon a product that weighs under 200g (seven ounces) than it does to return it.After you have taken into account any disposal costs, Amazon might still be able to dispose of your item cheaper.ITV's report on Amazon received negative press, including from Greta Thunberg, activist.O'Brien stated that Amazon is receiving a lot of negative publicity. However, it is responding to the failure by retailers to sell their goods through their platform. "And it is these third party retailers who are making it possible to dispose of the items."Amazon stated that it did not dispute ITV’s figures, but that the Dunfermline warehouse is responsible for disposing of all products in the UK. Amazon spokesperson stated that no item is sent to UK landfill. Instead, they recycle and donate.Dr. Teresa Domenech Aparisi is a University College London sustainability expert. She told Insider that even if products are sent to recycling plants, they could end up incinerated. She said that "not sending anything to landfill does not mean those products are being recycled."Are you an Amazon employee This reporter can be reached at ihamilton@insider.com and iahamilton@protonmail.com.Business Insider has the original article.
