What you don’t know about returns!!

What you don’t know about returns!!

Returns are inevitable for Amazon sellers. Once a product is returned by a seller, the seller may lose delivery costs and refund management fees. If the return costs are not calculated clearly, the reasons are found and adjustments are made in a timely manner, the subsequent losses may be very painful.

How to check Amazon return orders


Some novice sellers don’t know how to check Amazon’s return orders. Here is a brief introduction to the process of checking Amazon’s return orders:

Step 1: Open " Backstage ", click " Payment " in the " Data Report " drop-down option, and then click " Transaction Summary ";



Step 2: Select " Refund " in " Transaction Type ", select " Custom Date Range " for the time limit, and then select the time you want to check and update to view




What are the fees for Amazon returns?

0 1
Return Pickup Fee

If a customer requests a return for an FBA order on Amazon, sellers of general categories do not need to pay any additional fees (FBA staff will pick up the return item free of charge). However, if the product that the buyer requests to return belongs to some special categories, Amazon will need to charge the seller an additional return pickup fee when the product is returned.

1. Apparel; 2. Watches ; 3. Jewelry; 4. Shoes, Handbags & Sunglasses; 5. Luggage

That is to say, if the product that the customer asks you to return belongs to one of these five categories, Amazon will also charge the seller a return fee when returning the product. This return fee is the same as the Order Handling + Pick & Pack + Weight Handling of the product at that time.

In addition, the return processing fee is charged according to the size and shipping weight of the returned goods. The price list is as follows (for reference only):


0 2
Refund Administration Fee

When an FBA order is returned, Amazon will deduct a 20% commission and return 80% of the commission to the seller, regardless of whether the buyer requests a partial refund or a full refund. This 20% commission is called the refund management fee.


On Amazon, the refund management fees for different types of goods are different. Amazon refund orders can be divided into: media product orders and non-media product orders .

Media product (books, music, movies) orders :

1) In the case of a full refund, Amazon will refund all fees associated with the original order ;

2) In the case of a partial refund , Amazon will withhold the transaction fee based on a certain percentage of the product price you refund to the buyer , and only refund you a certain percentage of the sales commission originally charged for the order.

Non-media product orders: (There are 6 situations)

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 retain 20% of the original order-related fees as a refund management fee, up to a maximum of $5 for each item refunded.

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

4) If you refund a single item in an order , Amazon will retain a refund administration fee of up to $5.

5) If you refund two different items in an order , Amazon retains a refund administration fee of up to $5 for each item, with a maximum total of $10.

6) When we refund multiple items of the same item , Amazon retains a refund administration fee of no more than $5 for the refunded item.

How is the return fee calculated ?

Amazon's return orders are unlikely to generate profits for sellers, but may instead cause losses. As for how much money was lost from this order, how is it calculated? According to the above, it can be divided into two situations:


  • Items can be sold after return

FBA first-leg freight + FBA delivery fee + refund management fee


  • The product cannot be sold after return

Return fee = (product factory price + first leg) / exchange rate + Amazon FBA delivery fee + 20% of commission + removal/disposal fee


PS: If the items are clothing, watches, jewelry, shoes, bags, etc., you will also need to bear the cost of the buyer sending them back to the FBA warehouse.


The return processing fee is charged according to the product size and shipping weight. The price list is as follows:

     

        

The removal/disposal order fee is also charged according to the product size segment and shipping weight. The price list is as follows:

       


Assume that the factory price of product A is 20 yuan, the first leg is 8, the USD exchange rate is 7, and the product is sold for 16 USD. If product A cannot be resold, what percentage of the selling price will the return cost account for?

Return cost of product A =

(20+8)/7+3.28+16*15%*20%+0.52= 8.28 USD

When product A is no longer resaleable, the return cost of product A accounts for about 51% of the selling price.

Secondly, how much money can be refunded for product returns is also related to the refund reason selected by the customer;

When customers choose a refund, the Amazon system provides 12 reasons for refunds:

1. No Inventory

2. Wrong bought

3. Buyer Cancelled

4. General Adjustment

5. Different Items

6. Merchandise Not Received

7. Merchandise Not As Described

8. Pricing Error

9. Shipping Address Undeliverable (Buyer’s address cannot be delivered)

10. Delivered Late by Carrier

11. Missed Fulfillment Promise

12. Not need

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;


However, if the customer chooses to return the product for their own reasons, the FBA fee will be borne by the buyer.

Reason for return in return report
DAMAGED_BY_CARRIER

The product was damaged by the carrier. Amazon will usually automatically compensate the seller for this type of return. If not, you need to apply for compensation yourself.

DAMAGED_BY_FC

The product was damaged during transportation at the fulfillment center. Amazon will usually automatically compensate the seller for this type of return. If not, you must apply for compensation yourself.


DEFECTIVE

The product is defective. This may be because the product does not conform to the standard, the buyer made the wrong purchase, or there may be a real defect. Some buyers will randomly choose the reason for return, but if there are too many reasons for return of the product with defects, the voice of buyers will become lower. In serious cases, Amazon will even issue a performance warning.

EXCESSIVE_INSTALLATION

Over-installation. This is most likely a random choice by the buyer, and products that do not require installation may also have this reason for return.

UNDELIVERABLE_UNKNOWN

Undeliverable_Unknown. This return reason is caused by Amazon's delivery party. If the goods are not sellable, you can generally apply for compensation. If they are still sellable, there is no compensation.


UNWANTED_ITEM

Things I don't want. There's really nothing I can say about this, I can only sigh silently.

MISSED_ESTIMATED_DELIVERY

The return was not delivered within the expected time. This kind of return is caused by Amazon's delivery party. If the goods are not sellable, you can usually apply for compensation. If they are still sellable, there is no compensation.

MISSING_PARTS

Missing parts. If there are too many accessories, there are many reasons for return. It may be that the package was packed with too few accessories. You can take the order number to the customer service for investigation. There are also one or two reasons that the buyer may have chosen them at random.

NEVER_ARRIVED

Never received it. This return reason is caused by Amazon's delivery party. You can pay attention to the subsequent status of the goods and claim compensation if it is damaged.

NO_REASON_GIVEN

No reason was given.

NOT_AS_DESCRIBED

Does not match the description. Check the details page to see if there are any errors or misleading expressions. If so, modify them; if not, optimize them.

NOT_AS_EXPECTED

Not meeting expectations. Factors such as packaging and product quality may be considered.

NOT_COMPATIBLE/PART_NOT_COMPATIBLE

Incompatible. Parts are incompatible. It is possible that the buyer bought an inappropriate product or chose a random reason for return.

ORDERED_WRONG_ITEM

Purchased the wrong item.

QUALITY_UNACCEPTABLE

The quality does not meet expectations. This may be due to the quality of the product itself, or it may be due to the buyer's random selection. This can be judged based on the defect ratio of the product and the buyer's feedback.

SWITCHEROO

Amazon sent me the wrong item. Usually, Amazon sends the wrong product to the buyer even though the seller did not mislabel it. In this case, you also need to verify whether the product label is mislabeled and whether the warehouse packs the wrong goods.

UNWANTED_ITEM

Unwanted items. There is nothing much to say about this reason. It is the most unpopular reason for returning goods.

WRONG_SIZE

Wrong size. This type of return should also be noted and verified with the buyer, otherwise if there are too many, the most serious consequence is receiving a performance notification saying that the wrong product was sent.

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