Whether you are a brand-new seller or the owner of a multimillion-dollar company, handling consumer returns is a challenge that all e-Commerce firms face.

When you see a return request arrive, it’s always a little upsetting and demoralizing. Not only will you lose money on that sale, but it also indicates that your buyer wasn’t happy with their purchase of your goods.

As an online seller, returns are a fact of life, so there’s no need to freak out if or when you experience one. First, we’ll discuss Amazon’s return policy including what has changed and how it affects sellers. Then, we will  demonstrate how to comprehend and lower your return rate to bring in more satisfied clients.

 

Amazon FBA Return Policy

With FBA (Fulfillment by Amazon), Amazon takes care of customer service, fulfillment, and customer returns on behalf of sellers. Amazon follows its customer return policy when deciding whether an item is returnable. Even though it is the buyers’ fault that the item is damaged or defective, you, as the seller, have no control over whether a product is accepted as a return.

Customers can typically ask for returns within 30 days of receiving their product. However, Amazon can (and does) make exceptions on a case-by-case basis and accept returns after that 30-day window.

In the event of an exception, Amazon notifies the seller via email that a return has been started and that the order’s cost has been deducted from the seller’s account balance.

 

What happens if the product is returned to Amazon’s warehouse?

When a client returns an item to Amazon, the online retailer assesses the item’s state to decide whether or not it may be sold. For example, if the product were unopened and in brand-new condition, Amazon would return it to your inventory so that it could be used in a later order.

Amazon assesses who caused the damage if the item is damaged or in a condition that makes it unsellable (either Amazon itself, during fulfillment, or the customer). Therefore, you would be compensated for returning the product if Amazon damaged it.

The product will be marked “unsellable,” and Amazon will not pay you if the buyer (or delivery company) is to blame for the damage.

Within 30 days of the returned item’s arrival at the fulfillment center, sellers must submit a removal order for any item labeled as “Defective” or “Customer Damaged.”

 

What happens if the customer decides not to return the item?

After 45 days after the buyer receives the item, if they don’t return it to an Amazon fulfillment center, Amazon will charge the customer if they’ve previously received a refund and pay the seller for the merchandise.

After 45 days, Amazon usually automatically credits your account. However, you might need to file a support case to receive your compensation in a few uncommon circumstances.

 

Amazon FBM Return Policy 

Return policies for sellers who handle their order fulfillment are similar to those for FBA. However, the seller-fulfilled return policy on Amazon specifies that FBM merchants must adhere to or go above Amazon’s return policy. That implies that you must accept returns throughout Amazon’s 30-day return period.

Additionally, instead of going to Amazon, all returns will be delivered to the address on your seller account. After receiving the return package, you have two days to issue the consumer a refund.

You will immediately be enrolled in the Amazon Prepaid Returns Label program if you are a professional seller on Amazon. Therefore, Amazon will automatically send the client a pre-paid return shipping label on your behalf using Buy Shipping Services if they request a return and it is within the permitted time frame. Sellers must voluntarily sign up for this program.

Amazon will send you the return request for manual review if it is made in violation of the return policy or is deemed exempt.

In what ways does this affect FBM sellers? Unfortunately, this implies that before the consumer is automatically refunded, the seller won’t have a chance to get in touch with them and try to resolve the issue.

 

How to Handle Amazon Returns as a Seller?

When handling Amazon returns, knowing the best procedures your account might require is critical. As an Amazon seller, you can manage returns in the ways listed below:

Keep the email from Amazon that notifies you of a return

When a customer requests a return, Amazon sends out a notification. Make sure you retain any supporting documentation in your email.

Understand the reason for the return

When a return happens, the first thing to do is ascertain the immediate reason for the return. It will save you a lot of trouble in the future if you can solve the issue right now. To check the FBA customer returns report, you can run a report in Seller Central.

Look over the returned items

As long as the product was not opened and is still in brand-new condition, Amazon will accept returns. However, to secure your seller account, they take this action. Therefore, even if a refund is offered without a return policy, you should still inspect the things when you receive a return notification. You will be able to determine whether the items are defect-free. You can report to the buyer if the goods are genuine by providing Amazon with all supporting documentation.

Request reimbursements from Amazon

To learn more, see if the items have been returned to FBA. You can at least ask for compensation if Amazon issues a refund without a return policy.

This method requires a great deal of time and effort. However, selling items valued at millions of dollars is worthwhile. In any other case, hire a company to handle the laborious job.

Managing the inventory

Understanding the numerous inventory events that go into your ending balance might help you fully reconcile inventory balances. In addition, each inventory event has a report that might assist you in locating the crucial information.

Define your initial inventory balance

To find the ending inventory balance for an SKU or group of SKUs in the previous month, use the Monthly Inventory History report.

Received inventory

Find inventory receipt credits to include in your starting inventory balance by using the Received Inventory report.

Customer orders

In most cases, customer orders result in shipments that lower your overall inventory balance. Use the Customer Shipment Sales report to determine the number of SKUs shipped within a specific time frame.

Customer returns 

You can renew your inventory by accepting customer returns. Learn how many instances of an SKU or group of SKUs have been returned and credited to your inventory balance using the FBA Customer Returns report.

Adjustments

Your inventory balance may occasionally need to be adjusted due to unforeseen fulfillment centers or client issues. To keep track of the adjustments, use the Inventory Adjustments report.

Reimbursements

Sometimes adjustments result in reimbursement. To view the things for which you have received a refund, use the Reimbursements report.

Removals

Removing inventory from the fulfillment center will lower your inventory balance if you place a removal order. Use the Removal Shipment Detail report to get more information about the quantity taken out.

  • Utilizing the FNSKU field in each report is the most effective way to reconcile inventory.
  • The previous 18 months’ worth of inventory transactions is tracked in detail.
  • Overall inventory levels are kept constant forever.

 

If you cannot commit 3 or 4 hours per week to this, use a third party and streamline the process.

 

The pros and cons of Amazon’s refund policy

There are advantages and disadvantages to Amazon’s return-free refund policy. These apply to both Amazon sellers and buyers.

Pros

  • It lowers the seller’s logistical and administrative expenses.
  • Less conflict with customers.
  • The seller can reimburse the customer more quickly with a return less refund.
  • It increases consumer loyalty.
  • A return less refund presents a chance to attract new clients.
Cons
  • Buyers have a strong propensity to misuse the policy.
  • The return problem escapes the sellers’ control.

 

Conclusion

The process of selling on the Amazon marketplace includes FBA returns. Unfortunately, there is no way to stop FBA consumer returns completely. Instead, concentrate on what you can do to ensure that the product and the listing meet each other and the customer’s expectations. You should also keep track of the reasons why customers are returning items.

Please complete the following form

Name(Required)