How Do Returns Work in Amazon FBA?

When it comes to Returns, for an Amazon Seller it's always challenging to understand how to minimize them and therefore minimize losses.

As we know, in fact, Amazon gives full freedom to its customers to make Returns when and how they want, without particular restrictions.

It therefore becomes necessary to recover all possible money from Returns as well, and keep under control what actually returns to FBA Logistics, what gets damaged and what instead gets lost.

How Does the Return Process Work?

Unfortunately it happened! The end Customer has decided to make a Return Request for your product in their Amazon Menu. But what happens next?

Amazon reverses the corresponding amount in real time from the Seller's actual Balance and within a maximum of 7 days credits it back to the Customer's bank account or card.

From this precise moment on - the Customer has a period of 30 days (often extended up to 45 days) to repackage and return it to Amazon Logistics.

At this point, several circumstances can therefore occur:

• The Customer returns the product in perfect and sellable condition: your product returns to Amazon Logistics and the Seller doesn't suffer particular losses apart from the return handling fees by Amazon.

• The Customer returns the product in used/damaged/disassembled condition and/or returns a package with another object: your product is often identified as Unsellable or Damaged and is made available to the Seller for removal. According to Amazon's Policies, it should be noted that in this case there are two sub-scenarios:

  1. A first condition in which it's recognized that the damage was done by Amazon Logistics. In this case the Seller receives a reimbursement and credit.
  2. A second condition in which the damage is attributed to the End Customer or to the Seller themselves. In this case the Seller doesn't receive any reimbursement and/or credit.

• The Customer doesn't return your product at all: in this case, after 45 days, the Seller is always entitled to a reimbursement and credit from Amazon.

How Much is the Credit That Amazon Makes on Returns Worth?

Usually, it equals the selling price of your product net of Amazon's commissions (sales and logistics commissions).

But So, When Can I Request My Credit from Amazon on Returns?

1. When more than 45 days have passed and your product returned by the end Customer hasn't returned to the Warehouse
2. When your product was Returned as Damaged by Amazon Logistics

How to Minimize Returns? Some Suggestions

To minimize returns - in addition to paying close attention to the quality of your product and packaging - there are several strategies to adopt:

• Seal your products (boxes, packages) with your own seal/tape, possibly with your company logo
• Minimize the disassemblable parts of a product or the spare parts present inside the package
• Be very clear in the description, bullet points, images of the Amazon Page and don't give misleading information or that could be confused
• Always include Warnings and Safety Information, even in the images
• Improve and create different versions of your product based on feedback and negative reviews from your customers
• Act promptly through legal means when you suspect that reviews, negative feedback or returns are made by Competitors and/or fraudulent Customers

In general, you shouldn't be afraid to assert your commercial rights. If you suspect some scam, don't hesitate to contact us and we'll provide support in this regard!

But how, where and when to best check if you're losing money in Returns Management? Find out in the dedicated Article "How to Recover Money from Your Returns on Amazon FBA?".