Editor’s Note: Originally published on May 23, 2023, updated on Mar. 18, 2024.
Spring is here and summer will soon follow. As you start preparing for Prime DayPrime Day was initially a one-day sales … More, are you sure you’ve been keeping up with Amazon refund policies? Find out how to process returns and refunds on Amazon this summer.
Amazon refund policies are notoriously lenient on buyers. So, for Amazon sellers, any return request can be unnerving. But as the NRF points out, online sales have a higher return rate than brick-and-mortar returns. In 2023, e-commerce returns amounted to $247 billion, or 17.6% of sales.
Luckily, the Returns Performance dashboard shown below can help you forecast and minimize FBA returns. Return Insights features trends and problematic ASINs, a breakdown of return issues, and a downloadable report. You can also stay on top of urgent issues thanks to alert banners and metric summary pop-ups.
But the official guidance for returns and refunds on Amazon doesn’t address every question sellers may have about returns. Nor does the official guidance on how to Manage seller-fulfilled returns. So, here are some of the key aspects of processing returns and refunds on Amazon in 2024:
10 Take-Aways From Amazon Refund Policies
- Return and refund options vary. On Amazon, FBA and MFN (FBM and SFP) returns are handled differently. While Amazon handles all refund requests for FBA items, it’s up to the seller to deal with returns for seller-fulfilled orders. Note that this does not apply to non-returnable items. Below is a basic tutorial for MFN returns and refunds on Amazon.
- Communication with buyers. The Buyer-Seller Messaging Service is the only approved way to communicate with buyers. Note that the seller contact feature on the Amazon app is the Seller Messaging Assistant. This chat tool offers a return option right off the bat.
3. Prepaid returns. On Amazon.com, sellers are automatically enrolled into the Prepaid Returns Program. It generates prepaid return shipping labels on behalf of sellers and at their expense.
If you can’t cover return costs, Amazon advises you to issue refunds without a return. To do so, set your custom Returnless Resolutions Rule in Seller CentralAmazon Seller Central is a portal or a h… More. Alternatively, you can charge the buyer for return shipping if they changed their mind about the order. That is, unless you opted for Free Returns.
4. Exempt items. Certain items may be exempt from prepaid labels. Depending on your venue, you may request an exemption for a particular SKU (e.g., non-SFP high-value item on Amazon US). The Manage Returns page provides guidance on how to upload a merchant-paid label for exempt items.
5. Return tracking. You can easily track your returns on the Manage Returns page. By searching for the order ID, you can access more details and shipping label information for efficient tracking.
6. Refund delays. Refunds should be issued no later than 2 business days from the moment you receive a return. If you issued one but the buyer claims to not have received it and you checked that they followed refund status checking instructions, direct them to Amazon customer service.
7. Refund at First Scan (RFS). The RFS policy occasionally results in a refund being issued to the buyer before the returned package reaches the seller. Bear this in mind and don’t sign up to RFS if you sell high-value items or products prone to counterfeiting.
8.Restocking fees. Sellers can only charge a restocking fee for an item returned late, used, damaged, or different from what was sent. You can’t charge a restocking fee simply because the buyer canceled or changed their mind, unless it’s a video game or open software, as explained in the guidelines for charging restocking fees.
| Note: If you’re charging a restocking fee of 20% or above, Amazon will expect a photo showing that the item is damaged, defective, or different.|
9. Replacement orders. If buyers request a replacement for an MFN order and you have the same item- in the same condition- in stock, Amazon will grant the request. Amazon usually notifies you to ship a replacement as soon as they receive a request. But sometimes, they only notify you after the return courier scans the item.
As of Feb. 12, 2024, the buyer can request an instant replacement for an item in the Prepaid return label program that’s damaged, defective, or different. And they have a full 30 days to return the one they received.
10. Refund disputes. If you disagree with Amazon’s decision to grant a return, replacement, or refund on your behalf, you may be eligible to file a SAFE-T claim for reimbursement within 60 days. Go to Orders> Manage SAFE-T Claims in Seller CentralAmazon Seller Central is a portal or a h… More. You can only file one claim per order ID, and reimbursements can’t exceed $5,000 per order.
If it’s an FBA order, you must file a claim for reimbursement 60 days to 18 months after the refund or replacement is issued, as explained on the Seller Forum. If you’re not happy with the result, you may appeal only once and within 7 days of the claim decision.
When it comes to chargebacks (a.k.a. charge disputes), you’re responsible for them if the buyer reported a service-related issue to their bank (e.g., they haven’t received the item). Amazon is only responsible if there’s a payment-related issue (e.g., fraud, stolen card). To prevent them, keep a record of your tracking data for 6 months and only ship to the address on file.
This covers the basics of the latest Amazon refund policies. But please follow our blog to keep up with the latest guidance on how to process returns and refunds on Amazon. Also, for a hassle-free selling experience on the platform, why not give our software a try?
Melanie takes an active interest in all things Amazon. She keeps an eye on the latest developments and keeps Amazon sellers up to speed.
2 Responses
I am an Amazon customer. I have purchased an EGO battery operated lawnmower on March 6,2024. The seller was Amazon Services. The shipper was not specified so I had no way of knowing the shipping status. The only shipping status visible was that it was picked up And that there was some kind of security issue during shipment-I assume it might have been because of the battery for this lawnmower. Bottom line- it was never delivered
and I ended up contacting Amazon who immediately reordered the lawnmower-this time Amazon identified the shipper as VOC…but I still cannot see a shipment status beyond “shipped”
-that’s it! The delivery date is scheduled for Friday 3/22/24. I have my doubts it will happen??
Daniel
Hi, dear Daniel!
I’m really sorry to hear about the troubles you’ve had with your order. It sounds like quite the journey for something as simple as getting a new lawnmower! If the lawnmower hasn’t arrived yet, it might be a good idea to check in with Amazon’s customer service again. They’re generally quite helpful and may be able to provide more detailed information on the whereabouts of your order or even expedite a solution for you.
You can:
Check Your Email and Amazon Account: Sometimes, there are updates sent directly to your email or Amazon message center that might not be immediately visible on the order tracking page.
Contact Amazon Customer Service Again: Since the delivery date has passed, it would be best to reach out to Amazon’s customer service once more. They have access to more detailed tracking information and can often provide insights that aren’t available through the standard tracking page. You can contact them via the “Help” section on the Amazon website, where you can choose to chat, email, or have a phone call based on your preference.
Consider the Delivery Details: Mention the previous issue with the security concern due to the battery and express your understandable worry given the current lack of detailed tracking information. They might be able to expedite the investigation or offer an alternative solution, like prioritizing a new shipment if necessary.
Ask About Compensation: Given the inconvenience this has caused, you’re within your rights to inquire if there are any compensatory measures Amazon can offer, such as credits to your account or expedited shipping at no extra cost for the reordered item.
Monitor Your Orders: Keep an eye on your Amazon account for any updates and check your email for notifications regarding your order.
Stay Informed About Shipping Policies: For future orders, especially for items that might have shipping restrictions or special considerations like large batteries, it might be helpful to inquire ahead of time about any potential shipping issues. This can help set expectations and possibly avoid similar situations.
In the meantime, I’m here to help with any questions or concerns you might have. And when your lawnmower does arrive, I hope it brings a smile to your face and makes lawn maintenance a breeze for you. Hang in there; I’m optimistic that a resolution is on its way soon!
SellerEngine Team