Amazon Seller Return Policy: 2024 Changes for FBA

When you sell on Amazon, returns are an inevitable part of the sales process. Understanding Amazon seller return policy is important because returns can directly affect your profits. The policy dictates who pays for the return depending on its reason. This can significantly impact your bottom line, especially for high-value items.

This post explains how Amazon seller return policy works for FBA and FBM sellers, and summarizes the changes to Amazon's return policy specifically affecting sellers who use Fulfillment by Amazon (FBA) in 2024.

What Is Amazon's Return Policy?

A return is a product a buyer sends back to a fulfillment center or a seller. Amazon's return policy applies to most products sold on the platform, including those sold by third-party sellers.

Amazon FBA customer return policy allows customers to return most items purchased on the platform within 30 days of receipt. However, in some cases, customers can return the products within an extended return window.

Standard return window

For most items shipped directly by Amazon (including Amazon Warehouse), you have 30 days after delivery to initiate a return. This is the general guideline.

Extended return window

• Some categories, such as FBA baby items in a new, unopened condition and Birthday Gift Lists, have extended returns timeframe — 90 days. Items bought as Amazon Wedding Registry gifts can be returned within 180 days. 
• If the item is defective, damaged, or not as described, the customer can request a return even after 30 days. 
• Amazon has an Extended Holiday Return Policy, where items bought for the Holiday Season between November 1 and December 31, can be returned until January 31, next year.
• Third-party merchants may have their own 7 to 30-day return policies, which buyers must consider. 

Exceptions and variations

Some product categories may have different return windows. Apple products, for example, might only have a 15-day window. Additionally, there are always exceptions for specific items that cannot be returned due to hygiene or safety reasons. Some items, such as perishables, personalized items, and digital content, cannot be returned.

Items that cannot be returned 

• Hazardous materials;
• Personalized items, including jewelry orders;
• Items that have been consumed or installed;
• Digital products, such as ebooks or software that have been downloaded;
• Products missing the serial number or UPC;
• Online subscriptions after they have been used;
• Gift cards and prepaid game cards;
• Specific health and personal care orders;
• Grocery products;
• Items with special shipping restrictions;
• Live insects.

Changes to the Amazon Reimbursement Policy 2024

Starting on October 23, 2024, Amazon implements shorter windows for submitting manual reimbursement claims. The updated timelines are as follows.

• Fulfillment center operations claims

If an item is lost or damaged within a fulfillment center, you must submit a claim within 60 days from the date the issue was reported (instead of 18 months previously).

• FBA customer returns claims

These claims can be submitted between 60 and 120 days after the customer was refunded or received a replacement (instead of 18 months previously). Submissions before 60 days are not allowed to ensure the item has been returned and processed.

• Removal claims for lost-in-transit items

These claims must be filed between 15 and 75 days from the date the shipment was created (instead of 18 months previously). Claims submitted before 15 days will not be accepted to allow adequate time for the shipment to be returned.

• All other removal claims

Must be submitted within 60 days of the shipment being delivered back to you.

Related: How to Sell Hazmat Products on Amazon - The Ultimate Guide

Why Are Amazon Returns Important?

Amazon returns are upsetting, but they can give you insights into the product defects you must improve. Here's why returns matter and why you must reduce them.

Financial impact

Returns can directly eat into your profits. A returned item means a lost sale. Refunds issued for returns result in immediate revenue loss. Additionally, depending on the reason, not all returns and fees are reimbursed.

Seller feedback

Returns negatively impact your seller's reputation. In addition to losing money, they generate bad reviews and seller feedback from customers. That may further impact your sales because your Amazon buyers consider reviews and feedback about you as a seller shared by other shoppers.

Product improvement insights

Analyzing return reasons is like free market research. You can identify issues with the product itself, quality control, or even packaging. By addressing these problems, you can potentially reduce returns in the future, and offer a better product overall.

Account Health

Returns, together with customer feedback, successful A-to-Z guarantee claims, and chargeback claims, influence your Order Defect Rate and Account Health Rating on Amazon. Order Defect Rate should be kept below 1% to maintain a ‘Healthy’ Account Health Rating. If you have too many returns, Amazon may suspend your account.

Related: What is Amazon Seller Account Health Rating?

Amazon Account Health – A Guide for FBA Sellers in 2023

What is A-to-Z Claim Amazon - Complete Guide for Sellers

How Does Amazon Return Process Work?

Amazon return process differs for FBA and FBM sellers. The Amazon return process involves a few key steps for both the customer and the seller.

Step 1. Customer initiates return

• The customer goes to a Return Center and selects the item they want to return.
• They choose a reason for the return from the provided options.
• Depending on the item and reason for return, the customer may have various return method options
  • Print a return label: This is a traditional method where the customer prints a label provided by Amazon and ships the item themselves.
  • Label-free, box-free return: For certain items and locations, Amazon offers label-free returns where the customer brings the item to a designated drop-off location with a QR code generated during the return initiation.

Step 2. Return processing (depends on FBA or FBM):

• FBA Orders:
  • If you use FBA, Amazon handles the return process on your behalf;
  • The customer returns the item to a designated location based on the chosen method;
  • Amazon inspects the returned item and determines if it meets the return criteria.
• Seller-Fulfilled Orders:
  • If you fulfill the order yourself, you'll receive notification of the return request and are responsible for communicating with the customer and providing return instructions;
  • You'll need to decide whether to cover return shipping costs based on the reason for return.

Step 3. Refund

• Once Amazon receives the returned item (for FBA orders) or the customer returns it to you (FBM), they will process the return and issue a refund to the customer according to their chosen method (original payment method, store credit, etc.);
• You (the seller) will be notified by Amazon about the return status and any associated fees (e.g., return shipping cost), depending on the reason for the return and your FBA or FBM status.

Step 4. Reimbursement

• FBA
  • Amazon will reimburse you for the product cost and potentially other fees (e.g., FBA storage fees) if they determine the return is due to an issue Amazon is responsible for, such as:
    • Damage during FBA fulfillment
    • Incorrect item shipped
    • Item defective upon arrival
  • You won't be reimbursed if the return is due to reasons like customer remorse (changing mind) or a mistake in the customer's order. In these cases, you may or may not be responsible for return shipping costs.
• FBM
  • If you fulfill the order yourself, you'll receive notification of the return request and are responsible for communicating with the customer and providing return instructions.
  • You'll need to decide whether to cover return shipping costs based on the reason for the return and your policy.

How Does Amazon Track Returns?

Amazon tracks returns using Return Merchandise Authorization (RMA) numbers. 

When a customer initiates a return through their Amazon account and the return is authorized, Amazon assigns a unique RMA number to that specific return. This number acts like a digital fingerprint, tracking the item throughout the return process.

Both the customer and seller can use the RMA number to track the return's progress. The customer includes the RMA number on the package when they return it. When the package reaches an Amazon facility, they scan the RMA barcode, linking the physical return to the digital record. Sellers can then see the return status updates within their Seller Central account, often linked to the RMA number.

Information linked to RMA

• Customer information (name, order ID);
• Reason for return (damaged item, wrong size, etc.);
• Return method (return label, drop-off location);
• Status of the return (shipped back, received by Amazon, awaiting inspection).

Related: Amazon RMA — Everything Sellers Need To Know

What Is Amazon FBA Returns Policy for Sellers?

With FBA, Amazon processes returns on behalf of sellers. They identify if the product is eligible for a return, and the seller has no control over accepting or declining a return, even if the product is damaged by the buyer. 

Unfortunately, Amazon often refunds buyers immediately and inspects the product later to identify its condition.

If you have many returns of the same product, a returns processing fee may apply.

What happens to the customer-returned items on Amazon?

When a customer returns an item to an FBA seller, Amazon inspects it to ensure it's in the same condition as when it was sent to the customer.

Sellable items

If the item is returned as sellable, it will be returned to the seller's inventory and made available for sale again. Amazon refunds a seller for a part of the referral fee and, in some instances, pays the variable closing fees.

Unsellable items

If the product is unsellable and it’s Amazon’s fault, a seller has to process a removal order, and Amazon will credit a seller with the product’s selling price, part of the referral fees, and taxes.

Damaged items

If the item is damaged and it’s the seller’s fault, the product will be returned to their inventory and marked “Unfulfillable.” Then a seller has to process a removal order, and Amazon will credit the seller's account with all or part of the referral fee and variable closing fee (if applicable).

Related: Amazon FBA Fees

What if the buyer does not return the product?

If the buyer does not return the product within 45 days of initiating the return request, Amazon will recharge the buyer if they were already refunded and reimburse the seller.

If that doesn’t happen, a seller must open a support case to get reimbursement.

What is Amazon returns processing fee?

In some cases, Amazon charges a returns processing fee for the returns. The Amazon returns processing fee is a relatively new charge specifically for FBA sellers. It applies when a customer returns an item that you fulfill through Amazon's warehouses.

Amazon introduced this fee for the costs of processing returns like inspecting returned items, potentially restocking them, and handling customer inquiries. 

Who pays

As an FBA seller, you are responsible for the returns processing fee when a customer returns an FBA order.

How much is the fee

The fee amount is not fixed. It's a variable fee based on the product's size, weight, and return rate category.

When is the fee applied

The fee is only applied if the return rate for a particular product category exceeds a threshold set by Amazon. This means not all FBA returns will incur a fee.

What Is Amazon FBM Seller Returns Policy?

If you are an FBM seller, your returns policy works differently from FBA. 

FBM returns processing time

Amazon requires that FBM sellers match or exceed Amazon's return policy, which means they must accept returns within 30 days of receipt, regardless of the reason. You are required to refund the customer within 2 days of receiving the return shipment. 

How to process a return request

For professional sellers, Amazon authorizes the returns automatically. However, if the return is outside the policy or exempt from a prepaid return, Amazon will ask the seller to process a return request.

To process a return request, in your Seller Central, go to Orders > Manage Returns to approve or decline the return and see its details. 

When you approve the request, Amazon will send a return label to the customer.

Can FBM sellers issue a partial refund?

If the returned product is damaged or destroyed, FBM sellers can charge a restocking fee.

To charge a restocking fee, go to Orders > Manage Returns, click “Issue Refund”, and “Charge restocking fee” in the returned item.

How the customer returns FBM order

The customer must ship the product back using a pre-paid shipping label. Returns are sent back to the address you specified, and you must refund the customer within 2 days of receiving the return.

If you are a professional seller, you will be automatically enrolled in the Amazon Prepaid Returns Label program. With it, Amazon sends the buyer a prepaid return shipping label on your behalf. That doesn’t allow you to contact the customer and settle the issue before they are automatically refunded. If you are an individual seller, you may apply for enrollment in the program. 

Related: How to Reduce Your Amazon Return Rate

When Can Amazon Buyers Return Products?

If the product is in new condition, a buyer can return it for almost any reason.

The most common reasons for returns

• Unwanted order — customer changed their mind about the purchase;
• The product is defective — the item is broken or doesn’t work;
• Unauthorized acquisition — when a kid or other person placed an unauthorized order;
• The item was not received by the estimated delivery time;
• The product is not as described on the website.

How to know the reason for return?

FBA sellers can see a customer return reason specified by the buyer in the FBA Customer Returns Report.

To access the report, in your Seller Central, go to Reports > Fulfillment > FBA Customer Returns.

What Is a Returnless Refund on Amazon?

A returnless refund is a specific type of refund offered to customers where they receive their money back without having to return the unwanted item. Not all products or situations qualify for a returnless refund.  It's typically offered in the following situations.

What items qualify

Items with a low value

For inexpensive items, the cost of return shipping might outweigh the value of the item itself. In these cases, Amazon may opt to issue a refund without requiring a return.

Damaged or defective items

If a customer receives a damaged or defective item, they might be eligible for a returnless refund, especially if the item is unusable or difficult to replace.

Seller's discretion

In some cases, sellers may choose to offer a returnless refund as a customer service gesture, even if it's not explicitly required by Amazon's policy.

What to Do with the Returned Inventory?

If the product is returned to a fulfillment center and Amazon marks it as sellable, you can try to sell it again. Still, Amazon may not notice that the product is damaged, which will generate even more negative feedback on your account when somebody buys it. Otherwise, you’ll have to remove or dispose of your inventory and pay for that. To help sellers deal with returned or damaged items, Amazon offers several options.

FBA Liquidations

With the FBA Liquidations program, sellers can file a liquidation request in Seller Central. Amazon will evaluate the average product’s selling price, and you can get around 5% to 10% of it from wholesale liquidators within 60 days.

FBA Grade and Resell

With FBA Grade and Resell program, you can relist unfulfillable returned inventory as used items. When you submit the inventory into the program, Amazon will assign them the appropriate condition (Used – Like New, Used – Very Good, Used – Good, or Used – Acceptable) and create a new listing.

FBA Donations

With Amazon’s FBA Donations program, you can donate your inventory to US charities. In this program, Amazon partners with Good360 to donate inventory. This option allows for avoiding removal and disposal fees.

What to Do if the Customers Abuse Amazon’s Return Policy?

Dealing with customers who abuse Amazon's return policy can be frustrating. Here are some actions you can take if you suspect a customer is misusing the system.

For FBM sellers

Track return history

Monitor your return data within Seller Central. Look for customers with frequent returns, especially for similar items or reasons.

Document communication

Keep copies of all communication with the customer regarding the return, including their explanation for the return and any photos they may have provided.

Communicate directly

If the abuse seems minor, consider contacting the customer politely. Remind them of your return policy and see if there's anything you can do to resolve the issue without a return.

Report to Amazon 

If the abuse is essential, report abuse to Amazon. When reporting abuse, focus on factual data. Ultimately, Amazon will decide how to handle the situation. They may choose to warn the customer, suspend their account, or take no action.

For FBA Sellers

Report abuse

• Use Report button

If the customer is blatantly abusing the system, especially for FBA orders, use the "Report Abuse" button within Seller Central. This allows you to flag the customer's account for review by Amazon.

• Detailed report

When reporting, provide clear and concise details about the situation. Include screenshots of your communication with the customer, relevant return data, and any photos that support your claim.

FAQ

What is Amazon's policy on returning items?

Amazon generally offers a return policy with a 30-day window for most items. However, specific return windows and fees may apply depending on the product and the reason for return.

Do Amazon sellers get returns back?

If the customer fails to return the product to an Amazon fulfillment center within 45 days of receiving it initially, Amazon will charge the customer for the refund and reimburse the seller for the item. Normally, Amazon automatically reimburses you after 45 days.

Do Amazon sellers get charged for returns?

Yes, Amazon sellers may be charged for returns. They typically cover return shipping for non-defective items, and there's a new return processing fee for FBA sellers in some cases. Prepaid return labels are also charged to the seller.

Can Amazon seller refuse to return?

No, Amazon sellers cannot refuse returns directly. They must follow Amazon's return policy, but can influence the cost by setting a clear return policy and potentially using a restocking fee.

Who pays for returns on Amazon seller?

The party responsible for return shipping on Amazon depends on the reason for return: the seller usually pays for defects, while the buyer typically covers costs for unwanted items. However, everything depends on the exact case.

Final Thoughts

As an Amazon seller, it's important to understand Amazon return policy to avoid confusion and better understand your costs. Returns are a common occurrence on Amazon, and they can significantly impact your business if you're unprepared.

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