That's true. I rarely have to return things to Amazon, so it doesn't come up much.

However, I buy so much from the (I'm a Prime member) the I almost always have a small box around. I just put the item in it, print out the pre-paid shipping label, and drop the box in a UPS box or at a UPS store. It's not that bad.

I buy more than I return so the "pain in the butt" cost is still lower. Plus Amazon makes it really, really easy to return stuff, you just print the label and drop it off.

Good point. Returns usually are exception conditions, so one need only factor in a fraction of the "cost" of a return when making most purchases. However, when I order two sizes of the same shirt, I obviously will be returning one of them.

You don't need to leave the house. When you return something Amazon gives you the option to drop off or have UPS pickup the package the next day.

As far as I know, they'll only do that for really expensive items. I've never been given the pickup option for my returns (the most expensive was worth a bit under $300).

I've seen it for a variety of items, but I'm in downtown Manhattan- I suspect the economies of scale make a difference here.

The local delivery is a killer.

I can order by 9AM and, for just $3.99, have it delivered that same day.

The first time I did this, I forgot I even had Prime, so I was ready to pay for that for 3-5 day shipping. What a pleasant surprise that was!

From my wife's perspective, that's an added bonus -- the UPS store is right beside Starbucks :) In all seriousness, the post office, UPS store, FedEx Office (formerly Kinkos), etc. are all located in places we pass by during other common excursions (grocery store, etc.), so the marginal cost is low.