We all make purchases we wish we hadn’t sometimes. But when you’re an Amazon FBA seller, returns can add up fast. Not only do returns mean potentially lost profit, but they also mean that customers aren’t totally satisfied with your products. 

Both issues can spiral into large problems, especially as you try to scale your Amazon Fba business. Fortunately, being aware of Amazon’s policies and how you can manage returns effectively can help you stay ahead of the game. 

Amazon FBA Return Policy & Overview

If you sell on Amazon through the company’s Fulfilled By Amazon (FBA) program, good news – Amazon will handle returns and refunds. But that means all returns are subject to the same return policy Amazon uses for their products. It also means you (as a seller) don’t get to decide whether a product should be accepted as a return.

In most cases, customers can return products and receive a refund for up to 30 days once their order arrives. While some products are subject to different policies, Amazon is known to make exceptions. If a customer asks, they may be able to receive a refund even outside the 30-day window. 

So, where do you fit into the equation? After a buyer requests a return and ships back their item, Amazon deducts its cost from your account balance. You’ll also receive an email notifying you of the return.

From there, the product arrives at Amazon’s warehouse and is assessed for damage. Products that are in good shape and usable are returned to your product inventory for future orders. 

However, if Amazon deems the product unsellable, the next step is determining why the damage occurred. There are three potential outcomes here:

• Amazon Caused the Damage. If this is the case, Amazon will compensate you for the cost of the order.
• Shipping Caused the Damage. Amazon won’t reimburse you, but the product will be marked as “unsellable.” You can request the removal of the product or ask Amazon to dispose of it.
• The Customer Caused the Damage. Amazon won’t reimburse you, and the product will, again, be marked as unsellable. 

Amazon FBA Return Fees

In some cases, you, as a seller, may be able to charge customers a restocking fee. The fee is a percentage of the item’s original selling price and helps you cover the cost of processing the return. 

This typically applies when returns occur outside the 30-day period Amazon allows or when a return arrives damaged. Fees of 20-50% are common, but sometimes sellers may charge for more. When you get a return request, be sure to familiarize yourself with the situations that warrant restocking fees.

How Returns Impact Amazon FBA Sellers

It goes without saying that returns outside your control can hurt your profit margins. But a return request means more than lost dollars – it means your customer was unsatisfied with your product. 

Of course, inevitably, some customers won’t love every purchase they make. But, too many returns can cause problems for your seller account. Implementing some quality control standards and doing your best to showcase your products authentically can help you keep returns to a minimum. 

Managing Amazon Returns & Refunds (Without Losing Profit)

While there’s a lot more to managing returns than we can list here, these general tips can help you limit them and avoid them.

• Keep Tabs on Policy Compliance. Too many complaints of defective products can land you in hot water. Reaching too high of a percentage of defective orders will result in account termination. Keep an eye on why customers return your products by visiting the Policy Compliance section of your Amazon Sellers account. If products are marked as defective, determine what’s causing the problem or appeal the claims.
• Know the Rules. Understand what Amazon’s rules are and be prepared to follow them. This will help you leave room for returns in your plans but also give you a chance to claim restocking fees as necessary.
• Invest in Quality Products. The best way to avoid returns and refunds? Don’t sell products that customers will be disappointed by. Shop for products you believe in with sellers you trust to deliver quality results. 

At NexDeal Distribution, we’re committed to offering the best bulk wholesale merchandise to make filling your Amazon Fba Business with leading options a breeze. You can count on us to get your orders to Amazon safely and efficiently. 

Shop our rotating selection of daily wholesale deals to see what’s new, or download a complete list of our inventory for more options. We’re here to help you through every step of building the Amazon FBA business of your dreams.