What Are Amazon FBA Returns
An Amazon FBA return is just that, an item returned to an Amazon fulfillment center, for whatever reason. Sellers don’t like returns, for obvious reasons, but one reason why Amazon dominates e-commerce is due to its commitment to high customer satisfaction, and that means granting returns for almost any reason. In many cases it has nothing to do with product quality or even customer dissatisfaction—customers change their minds find a better price or decide they don’t need what they ordered. Or, as often happens, they’ve bought several different similar products to try them out and decide which one to keep and return the others.
Thanks to Amazon’s generous return policy, buyers don’t often do the necessary product research or make hard decisions about what they want because Amazon FBA returns are made so easy. That said, the better you understand Amazon FBA returns policies, especially changes in Amazon FBA returns in 2024 that could incur extra costs to you, the better you can reduce your returns rate. In addition, whenever Amazon FBA returns are mishandled or miscredited, you are owed refunds; however, these refunds are not automatic and you need to know how to identify and claim them.
So let’s take a look at:
- Amazon FBA Returns Policy
- 2024 Changes to Amazon FBA Returns Policy
- How to Limit the Cost of Your Amazon FBA Returns
- How to Get Refunds for Certain Amazon FBA Returns
Amazon FBA Returns Policy
Because Amazon handles all inventory management and order fulfillment logistics for FBA sellers, Amazon is also the final authority on Amazon FBA returns. You have no say about what can be accepted about a return and whether or not the buyer is at fault.
In general, customers have 30 days to return an item. However, it is not uncommon for Amazon to make exceptions to that rule. Whenever Amazon FBA returns occur, you get an email notification and the cost of the order is deducted from your Seller account balance. You can also see your returns on the FBA Customer Returns report.
Returns are processed at the fulfillment center and categorized as either:
- Sellable. The returned item is in good condition and complies with Amazon packaging standards. Amazon FBA returns classified as sellable go back into your active inventory.
- Unsellable. The item is returned visibly damaged or the customer claims it is defective. Perishable items beyond stated expiration dates are also unsellable and may be disposed of. You can request to remove unsellable items from your inventory within 30 days of the return, or you can request that Amazon do this automatically. Also, Amazon can dispose of any item in your inventory it considers unsellable without your permission, and without even notifying you.
Amazon does not reimburse you for unsellable items unless the damage or error is determined to be the fault of Amazon. Who determines fault? Well, Amazon. What if the carrier or customer damages your product? No reimbursem*nt.
What if the customer gets credit for a return, but doesn’t return it? Amazon usually reimburses you within 45 days. Keep in mind that it “usually” reimburses you; sometimes you have to open a claim to get your reimbursem*nt.
You can request to inspect any Amazon FBA return before relisting it to ensure it is in good working order. Submit a removal order from the Manage Inventory page and request shipment. There is a weight-based fee for shipping.
Customers who return items in original condition within Amazon’s accepted returns window are not charged a restocking fee. You can, however, charge restocking fees for certain open items, such as a CD or software, as well as for Amazon FBA returns accepted after the return window has expired.
Sometimes the return cost of shipping isn’t worth sending the product back. This happens when the product is difficult to resell or the product value is too low to bother. To ensure this only happens with your approval, specify Returnless Refunds rules in Seller Central and specify price range, product category, reason, and return window to accept returnless Amazon FBA returns.
2024 Changes to Amazon FBA Returns Policy
Beginning June 1, 2024, Amazon is going to assess a returns processing fee for high-return rate products in all categories, excluding apparel and shoes. Here’s the Amazon announcement:
- The fee will only apply to products that have return rates above a threshold specific to each category. Your product’s return rate will be the percent of your product’s shipped units in a given month that’s returned by customers over that month and the subsequent two calendar months. For example, for units shipped in June 2024, the return rate is the percent of those units returned over June, July, and August 2024. For a given month’s shipped units, the returns processing fee will be charged for each returned unit above the product category’s return rate threshold. You will see return fees charged to your account between the 7th to 15th day of the third subsequent month. For example, for June 2024’s shipped units that are returned and are charged the fee, the charge will be made between the 7 to 15th of September, 2024.
Amazon promises a weekly updated FBA returns dashboard for you to review your return rates and return rate thresholds at the beginning of May. This gives you a month of preparation time to see where you have high returns and take corrective steps before the fees are instituted.
How to Limit the Cost of Your Amazon FBA Returns
Amazon FBA returns can cost you. Unless Amazon or the customer is deemed at fault for the return, Amazon FBA returns are charged a processing fee equivalent to 50% of the fulfillment fees for the specific item. Keep in mind that thanks to a new policy as of June 2024, you are going to get hit with higher processing fees for certain items with high return rates.
To avoid these fees as much as possible, you can minimize potential returns by providing as many details in your product listing as possible. Needless to say, accuracy is paramount. Wherever possible, use video and graphics to show product operation and appearance. Where applicable, provide instructions on proper product use. FAQs are always a good idea to provide as much information as possible. The more customers know about your product, the less likely they are to be surprised by what they receive and consequently are that much less likely to return it.
You can mitigate the processing fees for damaged or otherwise unsellable Amazon FBA returns and avoid paying storage fees for unsellable products by submitting a liquidation request. While you may only recover as little as 10% or less of an item’s average selling price, you do recover some money. You can also relist returned products as used for a discounted price (Like New, Very Good, Good, or Acceptable) to recoup some of your loss. Another option is to donate items and get some tax benefits.
How to Get Refunds for Certain Amazon FBA Returns
When a return results from an error by Amazon in fulfilling the order or processing the return, or if the return is damaged or otherwise incorrect by the fault of the customer, you are owed Amazon FBA refunds. If you are not properly tracking your Amazon FBA return to identify these occurrences and file claims for reimbursem*nt, you are losing money.
It is up to you to identify possible Amazon FBA refunds, not just for returns but for any Amazon errors in handling your inventory and customer returns. Finding and claiming your Amazon FBA refunds is highly labor- and manual-intensive. Most sellers don’t have the time or the resources to do this. But don’t think the effort to claim your Amazon FBA refunds isn’t worth it. Your Amazon FBA refunds could amount to anywhere from 1% to 3% of your annual revenues. If you’re making a lot, you are potentially losing a lot.
Fortunately, Getida is a quick and easy way to get your Amazon FBA refunds with little expense and no risk. Getida software searches the last 18 months of your Amazon Seller account for potential Amazon FBA refunds. If there are sufficient cases of Amazon FBA refunds, and only with your authorization, Getida submits claims and follows up to ensure resolution.
Getida charges a small commission for this service only when your Amazon FBA refunds are approved. And the first $400 in Amazon FBA refunds are free.
Sign up for the free Getida review of your Seller account. There’s no obligation and nothing to lose, with a high possibility of a great return!
)
