How Amazon’s ‘dirty diaper mistake’ brought down this multi-billion dollar family business

A small family-owned business selling washable swim diapers on Amazon has gone bankrupt after the e-commerce giant resold a used, feces-stained diaper to a customer, Bloomberg reports.

Paul and Rachelle Baron, owners of Beau & Belle Littles, say their once-thriving business has been devastated by a single one-star review left in 2020. The customer received a diaper “covered in poop stains” that Amazon apparently hadn’t inspected before reselling it as new.

The review, which included photos of the soiled diaper, quickly gained traction as other shoppers rated it as “helpful.” This boosted its visibility in Amazon’s algorithm, eclipsing hundreds of positive reviews.

“The last four years have been an emotional disaster,” Paul Baron told Bloomberg. The couple says they are now $600,000 in debt and barely making enough to pay off loans and order inventory.

“Prejudicial criticism” continued for years

Amazon policy requires inspection of all returned items before resale. However, consultants told Bloomberg that selling used products as new is a growing problem on the platform. The sheer volume of returns makes thorough inspection difficult, according to a former Amazon employee.

Despite repeated pleas from the Barons, Amazon refused to remove the damaging review for years. The company finally pulled it hours after Bloomberg published its report on Monday.

What Amazon said

In a statement to Bloomberg, Amazon spokesman Chris Oster said they have since improved their returns process and updated policies to prevent the resale of certain returned products. He called such incidents “extremely rare.”

While Amazon’s marketplace gives small businesses access to millions of customers, the case highlights that sellers have little recourse when things go wrong. Some critics say Amazon’s algorithms and review system can amplify isolated incidents, potentially ruining companies because of a single mistake.

For the Barons, who once appeared on national television as an Amazon success story, the damage has already been done. They are now looking for additional work to make ends meet.

“Amazon talks a lot about helping small businesses,” said Paul Baron. “But they don’t really do it.”