Following a much-discussed reportage on French television, Amazon has now confirmed on Twitter that it destroys unsold products on behalf of external sellers. Donating to charities would not be an option due to France's VAT rules.
On Sunday, Capital, a programme on French television channel M6, showed Amazon destroying products on a large scale at its distribution centre in Saran. At the relatively small DC near Orléans, Amazon handles the fulfilment of orders from external sellers. In their contracts, sellers are given the choice of taking back unsold stock, or having it destroyed.
In nine months, Saran is said to have already destroyed 293,000 products, it was revealed on Sunday night. These products are burned or go to landfills. It is estimated that Amazon destroys around 3 million products a year in all French distribution centres.
There was a shocked reaction in France to Capital's reportage, including from politicians. An online petition calls on Amazon to donate usable, unsold products to poor families.
Amazon confirms destruction of products
Amazon has since responded to the outcry on Twitter. In three tweets, the online giant confirmed that it destroys some unsold products. "At Amazon, only a small proportion of unsold products are destroyed, the vast majority are recycled, resold, returned or donated," the US company writes.
French VAT rules make donating 'not economically viable'
Products from external sellers would not allow Amazon to donate to charities because French tax rules prevent it from doing so. "With regard to donations from external suppliers, current VAT rules require sellers to pay VAT on these, which is not economically feasible." Amazon continued: "We aim to reduce the number of products for which we have no choice but to destroy, including knocking on the right authorities' doors."
