Amazon sold a used diaper. It tanked a mom-and-pop business

Selling returned products as new is a major and growing problem, according to consultants who advise merchants how to navigate the online marketplace. When the practice spawns negative feedback, merchants say, the damage increases exponentially. — Unsplash

Paul and Rachelle Baron were an Amazon success story. The washable swim diaper they designed for their infant son quickly became a best-selling product as the online retailer’s algorithm worked its magic.

Satisfied parents left five-star ratings and glowing feedback, elevating the diaper in search results and steering more shoppers their way. The momentum seemed unstoppable.