Earlier quoted context omitted.
Is re-boxing Amazon products really that big of a hassle? I just re-use the box the product came in, or the box from another recent Amazon purchase.
It's not a big hassle, nor is obtaining the label or printing it, gluing it on, and taping the box. These are instead several small hassles, many separated in time, each requiring low level focus and effort. Maybe a customer doesn't have packing tape in his house, a cardboard box (since he threw it out) or label glue, so he has to start by to going get those first, after having initiated the return by going to a web…
But you're still right. No matter how easy Amazon makes it to ship a return, its still easier to return in person. The only exception is if you're not already going to that store, or don't have a car to go back to the store. I could see Amazon's hybrid in-person/online return options being the best of both worlds.