I hope it didn't sound like I was speaking negatively about them, it is more towards customers who wear and return items, and my questioning the quality of what I thought and still believe to be a new Coach bag with quality control problems.
If you got a new Coach bag with quality control problems, your complaint should be against/with Coach, not Zappos.
Zappos doesn't make the products it sells. Just as you can get a defective dress at Bloomies, a defective refrigerator from Lowes or a defective Coach bag from Zappos, it's the manufacturer who is ultimately responsible for manufacturer defects. Thus, they reimburse the retailer for refunds issued.
It's unfair to blame a retailer for a quality control issue.