Everything You Need to Know About Amazon Return Policy Changes in 2024

Amazon Return Policies in 2024

What Are Amazon FBA Returns?

An Amazon return is simply an item returned by the end customer to an Amazon fulfillment center, for any reason.

Sellers never like returns - for obvious reasons ;) - but one of the reasons Amazon dominates e-commerce is due to its commitment to high customer satisfaction, which means accepting returns for any reason.

In many cases, the return has nothing to do with product quality or customer dissatisfaction: the truth is that customers often change their minds, find a better price or decide they no longer need what they ordered. Or, they simply wanted to try different products and then decide which to keep and which to return.

Thanks to Amazon's generous return policy, buyers therefore often don't do thorough and necessary research on the product or what they want, precisely because the return procedure is so easy. And this is already a significant cost for the seller!

In 2024 moreover some Return Policies have been modified that could result in additional costs for the seller: it's good to know them thoroughly to avoid scams!

Remember: every time your returns are managed or credited incorrectly by Amazon, you're entitled to FBA Reimbursements. However, these reimbursements are not automatic and you need to know how to identify and request them.

Return Policies on Amazon FBA: When Can I Get FBA Reimbursements?

When you rely on Amazon for inventory management and order fulfillment logistics, you automatically accept that Amazon has the final say on your Returns.

In general, customers have 30 days to return an item. However, it's not uncommon for Amazon to make exceptions to this rule, especially for electronics products, where the functional defect warranty for 2 years is involved.

Every time the customer sends a return request you receive an email notification and the order cost is immediately deducted from your Amazon balance. You can also see your returns in Report > FBA Customer Returns.

What happens next? Here are the most frequent cases:

Amazon can establish that the Customer "has no return obligation". This means the customer may not have to return the product to logistics centers. In these cases is it possible to get an FBA Reimbursement? Yes.
In all other cases, if the customer doesn't return the product within 30 days the Seller is entitled to an FBA Reimbursement from Amazon.
The customer can return a product that has absolutely nothing to do with what you sell. In these cases is it possible to get an FBA Reimbursement? Yes.
The customer indicated that the product arrived broken and consequently Amazon should label it as "carrier-damaged / warehouse-damaged". In these cases is it possible to get an FBA Reimbursement? Yes.
The Customer broke or damaged your product and then returned it. In these cases is it possible to get an FBA Reimbursement? No, however it's possible with some techniques to still get the reimbursement.
If you sell electronics and the Customer has used the European warranty on functional defects - they can return an electronics product up to 2 years from the purchase date if there is actually a functional defect. But if the returned product has a malicious defect (e.g. broken screen) the Seller is entitled to an FBA Reimbursement.

Obviously, once they arrive at the warehouse, returns are processed at the fulfillment center and can also be categorized as Sellable and therefore without defects. In this case the returned item is in good condition and compliant with Amazon's packaging standards and returns to your active inventory: you don't receive any FBA Reimbursement.

However, you can request to inspect any FBA return before re-listing it for sale to ensure it's in good working condition. How? By sending a Removal request.

And for return fees? Customers who return items in original condition within the return period are not subject to return fees. However, you can:

charge return fees for certain opened items (e.g. a CD)
charge return fees for Amazon FBA returns accepted after expiration

Remember: If errors are made on return fees and you're unjustly charged, you always have the right to an FBA Reimbursement!

2024 Changes to Amazon FBA Return Policies

Starting June 1, 2024, Amazon will apply a return processing fee for products with a high return rate - in all categories, except clothing and shoes.

Amazon's announcement:

"The fee will only apply to products that have return rates above a specific threshold for each category. Your product's return rate will be the percentage of your product's shipped units in a given month that is returned by customers during that month and the following two months. [...] You'll see return fees charged to your account between the 7th and 15th day of the third month following."

Amazon promises an FBA returns dashboard updated weekly to allow you to check your return rates and return thresholds and enable you to identify high returns and take corrective action.

Remember: if you correctly categorize your Returns and related FBA Reimbursements you can avoid extra fees due to high Return rates!

How to Limit Amazon FBA Return Costs

As you've read so far Amazon FBA returns can cost you a lot if you don't pay attention to all the details!

If you don't prove that Amazon or the customer are responsible for the return, in addition to missing FBA Reimbursement on Returns, you'll be charged an extra processing fee equivalent to 50% of fulfillment fees for the specific item. This will also be higher for certain items with high return rates.

So how to minimize costs due to Returns?

Include as many details as possible in your product description with accuracy and where possible, use videos and graphics
Provide complete and correct instructions on proper product use, including them also in frequently asked questions
Liquidate (recover 10% of selling price) or donate your inventory (for tax benefits) or republish your Returns as used at a discounted price
Verify 100% that your Returns are eligible for a Reimbursement: in this case you'll not only get fair compensation for your Return but you'll also avoid extra fees due to the new 2024 Policy.

How to Get FBA Reimbursements on Your Returns

If you're not properly monitoring returns on Amazon FBA to best identify them and submit Reimbursement requests, you're losing a lot of money. Statistically, your FBA Reimbursements could amount to 1% to 3% of your annual revenue.

It's up to you to identify possible Amazon FBA reimbursements, not only for returns but also for any Amazon errors in managing your inventory (lost merchandise, damaged, incorrectly charged fees).

However, finding and requesting Amazon FBA reimbursements requires considerable manual effort and work: most sellers don't have the time, in-depth knowledge or resources to do it. Moreover, talking to Amazon Support without knowing how to request your FBA Reimbursements is often frustrating and devoid of logical sense.

Fortunately, thanks to our 2 years of experience in this sector, we've developed specific know-how and an incredible Team that manages to recover FBA Reimbursements in various situations.

Eagle Eye Software is a quick and easy way to get your Amazon FBA reimbursements at minimal cost and risk-free: it searches the last 18 months of your Amazon seller account for potential Amazon FBA reimbursements. Moreover, thanks to the FULL SERVICE the Eagle Eye Team submits requests on your behalf and ensures you always get reimbursed!

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