What fees will be incurred for Amazon FBA returns？

Returns are inevitable for Amazon sellers, especially after the annual promotional event, where a surge in orders often signifies the arrival of a return wave. There are many reasons for FBA returns, either due to the product itself, or due to the buyer's own reasons, or due to logistics issues at the end of the delivery process. However, regardless of the reason, once returned by the seller, there may be losses in delivery and refund management fees. If the return cost is not accounted for clearly, the reason can be found in a timely manner and adjustments made, and subsequent losses may be very painful. So what are the costs associated with Amazon FBA returns?

1、 Return and pickup fee

If customers request a return for FBA orders on Amazon, general category sellers do not need to pay additional fees (FBA staff come to pick up the returned items for free); But if the product that the buyer requests to return belongs to some special category, Amazon will also need to charge the seller an additional fee for returning and retrieving the item. The specific categories are as follows:

1. Apparel

2. Watches

3. Jewelry Jewelry

Shoes, Handbags&Sunglasses

Luggage luggage

2、 Return management fees

When FBA orders generate returns, Amazon will deduct 20% of the commission and refund 80% of the commission to the seller. Regardless of whether the buyer makes a partial or full refund, this 20% commission is called a refund management fee.

At Amazon, the refund management fee for different product types varies. According to Amazon's refund product orders, they can be divided into: media product orders and non media product orders.

Media products (books, music, film and television) orders:

1) When fully refunded, Amazon will refund all fees related to the original order;

2) When a partial refund is made, Amazon will withhold a certain percentage of the transaction fee based on the price of the product you returned to the buyer, and only refund you a certain percentage of the initial sales commission for the order. Non media product orders:

1) Full refund, Amazon charges a refund management fee of 20% of its sales commission or less than $5;

2) For partial refunds, Amazon will withhold 20% of the original order related fees as a refund management fee. For each product refunded, the maximum amount is $5.

3) Amazon also retains a variable settlement fee for issuing partial refunds for software and video game orders. (For professional sellers, this fee is not charged.)

4) If a single item in the order is refunded, Amazon will withhold a maximum refund management fee of $5.

5) If two different items in the order are refunded, Amazon reserves a maximum refund management fee of $5 for each item, with a total amount of up to $10.

6) When we refund multiple products of the same type, Amazon reserves a refund management fee of no more than $5 for that refunded product.

Of course, the amount of money that can be refunded for product returns is also related to the refund reason chosen by the customer. When customers choose a refund, the Amazon system provides a total of 12 reasons for the refund. If the reason for the return chosen by the customer is related to the product itself, Amazon will refund 80% of the sales commission, and the FBA fee will also be borne by the seller; But if the customer chooses to return the product for their own reason, then the FBA fees are borne by the buyer themselves.

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