Sellers on Amazon will now see a default option of donating their unsold goods if they want to dispose of the products stored in company warehouses. The new charity program has since received praise and approval from merchants and environmentalists.
Amazon confirmed on Wednesday afternoon that the Fulfillment by Amazon (FBA) Donations program, which will be applicable in the U.K. and the U.S., will be dedicated to helping those who are in need.
Merchants who use the platform to sell goods said they approve of the program. It not only helps reduce global waste and eliminates the need to destroy unsold goods but it also allows for a cheaper option for those who don't want their stored products returned to them.
In the United States, Amazon will join hands with global philanthropy group Good360 to distribute the unsold goods. In the United Kingdom, the company will work alongside charitable foundations such as Barnardo's, Salvation Army, and Newlife.
"We know getting products into the hands of those who need them transforms lives and strengthens local communities. We are delighted to extend this program to sellers who use our fulfillment services," director of Amazon in the Community, Alice Shobe, said of the program.
CNBC first reported that the American retail giant decided to launch the program is expected to cut down on inventory in such a way that does not harm the environment. The move came amid reports that the company destroyed a massive number of products last year.
The destruction of unsold or excess goods stored in Amazon warehouses was reportedly performed in France. It was estimated that over three million products were destroyed in the country in 2018.
Some analysts predicted that there were more goods destroyed in the U.S. than in France since the e-commerce giant generates a significantly larger amount of sales in the U.S.
A spokesperson for the company clarified in an emailed statement that most of the platform's returned products are either resold, returned to the appropriate suppliers, or donated to charities. The re-distribution of these products depends on their physical conditions.
The FBA Donations program is expected to take effect in September and while donating unsold goods to charity is the default option, sellers can always opt-out of the program if they want to.
For its decade goal, the company has established a goal of 50 percent net zero carbon by the year 2030. According to Business Insider, the company's "Shipment Zero" project aims to encourage manufacturers to design packaging that leans on sustainability.
The ultimate goal of Amazon is to dramatically cut down on wasteful materials within its supply chain in a bid to improve the company's stand on eco-friendly business practices.
