Last updated on June 5th, 2023
Written by Mohamed Aden
As an Amazon FBA seller, you should be well-versed in selling and dealing with refunds. The latter may not exactly be a breeze to deal with as a seller. But knowing that the platform is very customer-centric, almost all of its guidelines and policies are geared towards catering to them.
As an Amazon seller, you should know how to deal with refunds to avoid complications in the long run. With that, here’s a quick guide on Amazon refunds and how to deal with them.
A refund on Amazon is when a customer returns an item they purchased from you and asks for their money back. There are a few reasons why this may happen:
When a customer initiates a refund, you’ll receive an email notification from Amazon. You have 48 hours to respond to the refund request. If you don’t, the refund will be automatically processed.
To process a refund, go to your Amazon Seller Central account and find the order in question. Select the Issue Refund button and enter the amount you want to refund the customer.
Once you’ve entered the refund amount, select the Issue Refund button again to confirm. The customer will receive their refund within 3-5 business days upon seller approval.
Given the following circumstances on why a customer might request a refund on Amazon, here are some things to consider:
When processing a return request, go to Manage Returns. Here, you can check all the requests that prompt you to authorize or decline them.
Before approving a return, make sure that the returned order is not Seller Fulfilled. Check it first on Seller Central to see if it has a Prime badge.
When receiving a return shipment, you will notice a packing slip and Return Mailing Authorization or RMA to help you identify which return it is.
If a buyer asks to cancel an order, this will also fall under your responsibility as a seller. If you have not shipped and confirmed the product, you can cancel it directly in the Manage Orders area. You can also use an Order Cancellation feed to help manage this.
However, if the item is already confirmed as “shipped,” you can authorize a return request on the Manage Returns page.
You’ll receive an email notification from Amazon once a refund has been processed. You can also check your Transaction History in your Seller Central account to see if a refund has been issued for a particular order.
No, there are no fees associated with refunds. However, you will not be reimbursed for the original shipping costs. Refund prices fluctuate.
Yes, you can refund a customer even if they don’t return the item. This is called a partial refund and getting an Amazon refund without a return. To issue a partial refund:
You’ll receive an email notification from Amazon once a customer has returned an item. You can also check the Return Status in your Seller Central account to see if an item has been returned for a particular order.
If you disagree with the refund request, you can contact the customer and try to resolve the issue. If you’re unable to resolve it, you can escalate the issue to Amazon by going to your Seller Central account and finding the order in question.
Then, select the “File A Claim” button. From there, you can challenge the buyer’s refund request by providing information regarding the order.
There are two types of refunds on Amazon: full refunds and partial refunds.
A full refund is when you refund the customer the full amount they paid for the item, including shipping costs. Cases that entitle a customer to a full refund usually revolve around seller error.
If a seller is not at fault regarding an order or if the seller can replace the item, the buyer will not be granted a full refund of their purchase.
A partial refund is when you only refund a portion of what they paid. Partial refunds are typically given when the item is returned damaged or not as described in the listing—in short, unsellable.
Certain criteria must be met to determine how much a buyer is still owed. This is similar to restocking fees.
Restocking fees, on the other hand, are a type of partial refund or fees charged at the expense of a buyer for returning a purchase after completing the order for reasons not due to seller error. Restocking fees vary depending on the condition of the item returned, if it was delivered in the appropriate time frame, and its total item price.
If the item was delivered on time and in its original condition, then sellers cannot charge restocking fees. If the item was delivered outside the thirty-day return window, even in its original condition, the seller has the right to charge up to 50%.
If the buyer returns a non-media item with obvious signs of use, damage, or missing parts, they can also be charged a 50% restocking fee. Media items, like books, VHS tapes, cassette tapes, vinyl records, books, software, or even video games warrant a 100% restocking fee when returned after being opened.
Yes, Amazon refunds do take time to process. For example, if you issued a gift card as a refund, the process will take only two hours or slightly more. But if your customer uses a prepaid credit card, the refund request and delivery date could take up to thirty days, depending on the credit card company.
Choose a preferred refund method carefully; some methods take longer, and some take practically no time at all. Here’s a list of the different types of refund methods and how long each will take.
Note: If your refund request involves a promotional certificate, you are not eligible for a refund. Also, Amazon’s refund policies do not include a price change refund, meaning customers cannot put out refund requests for an item’s recent price difference if there is a price drop or if the seller declares a new price.
Amazon’s price adjustment policy does not encourage price matching with their competitors and instead opts to ensure their sellers offer a cheap or at least lower price for their products.
Here are some tips for dealing with refunds on Amazon:
As an Amazon FBA seller, you should have an understanding of how returns, refunds, or cancellations work. It’s only natural to feel stressed about dealing with refunds and returns.
So let an Amazon account manager handle Amazon customer service for you! Here at Seller Interactive, we have a team of experts who can help you! Schedule a free consultation with us here or call us at 1-800-820-3746.
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