This sort of warranty policy is really not unusual at all. In fact, it's quite common. The online vendor is not in a position to repair the item themselves, so it has to be sent back to the manufacturer for repair or replacement -- at their option -- if it is defective.
What some vendors will do to maintain good customer relations is to have their customer return the item directly to them for replacement but they usually won't do that if the item has been used. That's sort of the Catch 22. And a lot of times the manufacturer won't take back used products from the vendor under warranty claims. They insist that the customers deal directly with them.
I understand your point entirely, I'm just trying to tell you that it's quite common to have to return defective products to the manufacturer for warranty problems instead of back to the vendor, and every time I have had to do this (twice), I have had to pay the shipping to get the product to the manufacturer. However, I have never had a product with a manufacturing defect that was apparent from the very beginning like yours. Both of the items that I returned failed during the warranty period due to defective pumps supplied by a Chinese manufacturer. The American manufacturer had me return the products and they installed new, better pumps.
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