Since 2018, product recalls from both the U.S. Food and Drug Association (FDA) and Consumer Product Safety Commission (CPSC) have skyrocketed by 115%. The country has gone from 208 recalls a few years ago to over 400 product types in the present day.

Consumer product recalls in 2023 alone totaled about 135 million units — a massive disruption for businesses and consumers alike. Beyond the immediate cost of repairs and lost sales, recalls weaken customer trust and loyalty, which are often more challenging to restore.

However, this is also an opportunity to protect and potentially improve your brand image. The logistics alone can be challenging though, so it’s important to establish an efficient product recall procedure. In this guide, we’ll offer practical advice to help you handle recalls effectively and protect your brand.

Common reasons for product recalls

Understanding the most common causes of product recalls can serve as both a reminder and a proactive measure. They help businesses implement robust procedures and standardized compliance while ensuring product quality and customer safety at every step.

Product recalls are usually triggered for the following reasons.

Safety hazards

Certain products can become dangerous if companies neglect safety standards. A small oversight can easily lead to major recalls, resulting in financial losses and a significant erosion of customer trust.

Child safety specifically is one of the leading causes of CPSC recalls. More than one in five such instances involves children’s and baby products. For example, Newmemo Children’s Ring Sets saw around 2,200 units recalled due to lead and cadmium poisoning risks.

Recalls like these prioritize user safety and often stem from contamination, defective components, or labeling errors.

Regulatory non-compliance

Every industry must adhere to strict regulations, and failure to meet those often leads to a product recall. The challenge is, many items tend to be on shelves already when a recall is issued.

As Judy Echavez, spokesperson for the CPSC, points out, the organization has no pre-market approval authority over consumer products; manufacturers are responsible for compliance and ensuring their products are safe before reaching consumers.

Product design flaws

Recalls can also stem from lapses in product design that compromise functionality and, more importantly, safety.

A notable example is Boppy lounger pillows, which had design issues that tragically contributed to infant fatalities. CSPC and the brand recalled over three million pillows to prevent further casualties.

Manufacturing defects

Manufacturing defects are another common cause of large-scale recalls, often due to improper assembly or quality control issues. The automotive industry frequently experiences this and sends out recalls to address such defects.

Toyota had one of the most expensive incidents in history, incurring costs of over $3 billion. The automotive giant had to recall 8.1 million vehicles due to concerns that the gas pedals could become entrapped in floor mats (among other issues). As the recall unfolded, government reports indicated that unintended acceleration in Toyota vehicles may have been implicated in the deaths of 89 individuals over the preceding decade.

Allergen mismanagement

According to the FDA, there are nine major food allergens:

1. Milk
2. Eggs
3. Fish
4. Crustacean shellfish
5. Tree nuts
6. Peanuts
7. Wheat
8. Soybeans
9. Sesame

Allergic reactions to these foods can range from mild to life-threatening, so regulations require companies to specify the source of all major allergens present in their products on food labels.

Counterfeit or fraudulent products

It’s also possible for unsafe counterfeits to enter the market. Electronics and pharmaceuticals are among the most vulnerable to this type of fraud.

For instance, the FDA issued an advisory regarding counterfeit Botox, which can lead to serious health side effects like:

• Blurred or double vision
• Dry mouth
• Constipation
• Shortness of breath

Unexpected side effects

Over the course of 2024, the FDA issued more than 80 medical device recalls.

Unexpected side effects can emerge after a pharmaceutical or medical device hits the market. These are often challenging to deal with, as they involve patient health and require detailed communication with doctors and users.

What to do if you need to issue a recall

Recalls may seem daunting at first, but they’re important to mitigate harm to your consumers and damage to your brand. The key is knowing how to proceed correctly. Here’s a guide to help you issue and manage recalls.

1. Identify the problem and assess the risks

You can’t initiate a product recall until you thoroughly understand what went wrong and develop a compensation plan. Missing essential details jeopardizes your business and puts your customers at risk. So, to take control of the situation, determine the scale of the mistake and disclose what your customers have the right to know.

2. Stop distribution and sales

Once you understand the scope of the issue, it’s crucial to halt all production, distribution, and sales of the affected products immediately. While that disruption may result in some loss, failure to contain the recall promptly can lead to far greater consequences.

3. Notify regulatory authorities

It’s critical to inform relevant agencies about the product recall. This action expands the reach of your alert so all efforts are made to prevent further purchases of the defective product.

4. Communicate with consumers

Even if regulatory authorities have issued a public alert about your product recall, your stakeholders must hear directly from you too. This demonstrates accountability and shows you’re taking the necessary steps to rectify the situation. Plus, communicating with your stakeholders helps reassure consumers about your commitment to their safety and reinforces trust in your brand.

5. Retrieve affected products

Another critical aspect is establishing a system that facilitates the seamless return of your products. Since the recall itself is already an inconvenience, it’s vital to avoid adding to that frustration with a disorganized and chaotic return process.

6. Compensate or replace

Naturally, when customers return the products, they’ll expect compensation or a replacement for their order. Provide timely refunds or replacements to maintain buyer trust and satisfaction during the recall process.

7. Document and report the recall process

Record each stage of the recall process to keep everything organized. That way, you’ll have all the necessary information in case regulatory bodies or other authorities need to reach out. Additionally, thorough documentation can reveal valuable insights that improve your processes for the future.

8. Conduct a post-recall review

Pinpointing why the recall happened is imperative. That knowledge helps you prevent similar issues in the future and improve safety and quality assurance processes.

9. Rebuild trust with consumers

Last but not least, you must regain the confidence of your customers. Although it’ll take some time, you can gradually restore their trust in your business by showing dedication and commitment to preventing future mishaps. Your efforts will go a long way toward rebuilding your credibility and shoring up your follower base.

Platform-specific recall procedures

Recall procedures can vary on different marketplaces, so it’s important to understand the specific requirements for each. To help you out, we’ve summarized the recall procedures of some popular selling platforms.

1. Amazon

When you initiate a recall on Amazon or the marketplace issues a public alert, Amazon steps in to help the process move forward smoothly. Specifically, they’ll:

• Remove the product: Amazon will quickly take the recalled item off the marketplace.
• Reach out for information: Amazon will contact sellers and manufacturers to gather any extra details.
• Alert customers: Warnings are added to the product’s page so customers know what’s happening.
• Handle necessary tasks: Depending on the situation, Amazon will take any necessary actions to protect consumers.
• Notify the correct authorities: They’ll also report any safety concerns to the right entities to maintain compliance and safety.

Learn more about Amazon’s recall procedures here.

2. Shopify

Shopify makes managing product recalls straightforward by streamlining returns so the process is easy and convenient for you and your customers. The platform offers a range of built-in tools designed to enhance the experience:

• Centralized returns management: Shopify’s returns management allows businesses to track and manage recalled items in one place.
• Automated customer notifications: You can access automated email and SMS tools to inform customers about the recall, update them on their return status, and send additional instructions.
• Self-serve returns: Shopify lets customers initiate returns themselves, which speeds up the process and cuts down on unnecessary back-and-forth communication.
• Return shipping labels: You can create and provide return shipping labels directly through the platform so it’s simpler for customers to send products back.
• Refund management: With Shopify’s built-in refund tools, you can issue refunds quickly for a seamless customer experience.

3. Walmart Marketplace

When filing a product recall on Walmart Marketplace, you simply have to:

• Log in: Access your Walmart Seller Center account.
• Navigate to “Performance”: Go to this section to find recall management options.
• Initiate the recall: Begin the process by entering all necessary information, including affected SKUs and a description of the issue.
• Submit documentation: Provide the required documents, such as timelines or safety compliance information related to the recall.
• Follow up: Keep in contact with Walmart for any additional information or necessary steps to complete the recall.

Wrapping up — Improve your recall response to protect your brand and consumers

A recall demonstrates integrity but also brings costly consequences, so effective recall management is essential. Understand the common reasons for these events to help you anticipate and prevent issues. Knowing how to handle them can protect you from potential lawsuits, heavy financial losses, and other complications, while an efficient response can protect you from losing customer loyalty and trust.

At MyFBAPrep, we’re here to support you through any and every product recall. Our logistical expertise makes it easier to manage recalls so your customers feel confident in your commitment to their safety and satisfaction.

If you need help facilitating a better product recall process, reach out to our team to strategize.

Published: August 31, 2023
Updated: November 29, 2024