Important! Teach you how to avoid FBA returns from damaging your store’s profits!

When Amazon receives a return from a buyer, warehouse staff will check the reason for the return and then determine whether the product is still in sellable condition.

When a buyer returns a product that Amazon has determined to be unsellable, many sellers choose to have Amazon dispose of the item, believing it is not worth selling anymore.

This is a huge mistake, as there is a good chance that the item is still in sellable condition.

Taking a few extra steps to see if the product is truly unsellable can help you reduce your losses.

Many times, a product that is not sellable can still be sold.

Here are the main scenarios in which buyers return products, and how to best handle each product.

1. Sellable returned products

Returned products will automatically be returned to stock as sellable.

Unless you are concerned that the product is not actually in sellable condition, you don’t need to do anything once the product does return to Amazon.

If you're concerned that the product isn't really suitable for sale, you can check it out yourself.

Keep reading below to find out what to do when a buyer has received a refund but the product was not actually returned.

2. Damaged return products

There are a number of reasons why products may be returned damaged.

The item may be damaged in the FBA warehouse before being shipped to the buyer.

If the product is damaged during transportation, then it is Amazon’s responsibility. If the seller does not pack the product properly before sending it to the FBA warehouse, then it is considered the seller’s responsibility. It may also be that the seller did not carefully check the damaged products when sending the inventory.

If the fault lies with the seller, there is no compensation available, but if the fault lies with Amazon, then the seller can apply for compensation.

3. Returned products damaged by the buyer

Products returned as damaged by the buyer will not be returned to sellable inventory.

Buyer damaged does not mean that the buyer purchased the product, damaged it and then tried to return it.

Buyer damaged means that after the buyer opens the item, the product is no longer in new condition.

Sometimes buyers say they opened the item, but in reality they never opened it and the product is still new. For these products, the best course of action is to create a removal order and have the product shipped back to you so you can determine if the product is worth reselling.

4. Returned products damaged by the carrier

If the product is damaged during shipping, it is because the shipping company (such as UPS, FedEx, USPS, etc.) did not take good care of the package during transportation.

In this case, you can ask for compensation for the return, because the damaged product is not your fault. Do not create a removal order, because if you ask for the item to be returned to the original owner, Amazon will not compensate you.

5. False returns

The product is returned to Amazon as "defective" and is visibly damaged, or the buyer indicates it is defective. When this happens, the buyer will be refunded, but the item will remain in your inventory as an unsellable product.

The best way to proceed here is to create a removal order and have the product returned to you for inspection. Some buyers return the product to Amazon stating it is defective in order to get a free return, when in fact the product is not defective.

Many sellers have encountered this situation, only to find that the products were all brand new, and some had never even been opened.

If the product is still sellable, you can send it to FBA again.

If a buyer claims that a product is defective and it is not, it is your responsibility to protect your account and correct this false claim.

Too many claims of this type can hurt your seller metrics and put your account in jeopardy of suspension.

If a buyer falsely claims a product is defective in order to receive a free return, please follow the steps below.

Most accepted returns are made within 30 days of the original purchase. The exception is after November 1, when Amazon gives buyers an extended return window until January 31 of the following year.

After requesting a return, the buyer has 45 days to return the product to Amazon.

But what happens if a refund is issued but the product is not returned after 45 days? This is something Amazon should monitor.

Amazon automatically reimburses you when a product is not returned, but this doesn’t happen 100% of the time. Some returns get missed for one reason or another.

When this happens, you need to be proactive in asking for reimbursement. Simply open a new case with Seller Support and let them know that the product being refunded was never returned. Amazon will investigate and eventually reimburse you.

For more information on returns, log in to Seller Central and click Reports > Fulfillment > FBA Customer Returns.

Remember, the occasional return is just part of business and nothing to worry about. Don’t ignore your unsellable returns, as they will just sit in the FBA warehouse and continue to incur monthly storage fees.

Take action to do what you can to make those products sellable or reduce the number of such products. Finally, make sure you are compensated for the products that were never actually returned.