Refunds on Amazon: Everything Sellers Need to Know About It

March 30, 2022
Written by Nicasio Co III
refund amazon

As an Amazon FBA seller, you should be well-versed in the selling aspect, per se, and dealing with refunds. Refunds on Amazon 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.

So, as an Amazon seller, you should know how to deal with refunds to avoid complications in the long run. It's a tough subject to deal with but in e-commerce, this would be an opportunity. This scenario is quite normal in the online marketplace yet, dealing with it having the right process and precautions may create a solid and positive outcome. 

With that, here's a quick guide on what Amazon refunds are all about and how you should deal with them. Read on to know more.

What is a Refund on Amazon? How to Get a Refund on Amazon?

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:

  • The customer may have changed their mind about the purchase
  • The item may be damaged
  • The item may be different from what was described in the listing

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. Then, select the "Issue Refund" button. You can 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 then 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:

amazon returns

Return request

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.

Cancellations

If a buyer asks you to cancel and 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. 

How do I know if a refund has been processed?

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.

Are there any fees associated with refunds?

No, there are no fees associated with refunds. However, you will not be reimbursed for the original shipping costs.

Can I refund a customer if they don't return the item?

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 return. To issue a partial refund:

  1. Go to your Seller Central account and find the order in question.
  2. Select the "Issue Refund" button and enter the amount you want to refund the customer.
  3. Once you've entered the refund amount, select the "Issue Refund" button again to confirm.
amazon customer service

How do I know if a customer has returned an item?

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.

What if I don't agree with the refund request?

If you don't agree 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'll be able to provide

What are the different types of refunds on Amazon?

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. 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.

Tips for dealing with refunds on Amazon

Here are some tips for dealing with refunds on Amazon:

  • Try to be as responsive as possible to refund requests. If you don't respond within 48 hours, the refund will be automatically processed.
  • When receiving a return, you should be able to refund the item within two business days. Failure to do will give Amazon the right to refund it on their part. After that, they will charge the amount directly to your seller account.
  • When issuing a refund, you can issue a full refund or a partial refund. Partial refunds are typically given when the item is returned damaged or not as described in the listing.
  • If you're unsure how to handle a particular refund request, you can always contact Amazon customer service for help.
  • The process of your customer's returns does not stop after you've approved the request. Therefore, it's still best to track the returns’ current progress.

Final Thoughts

As an Amazon FBA seller, you should have an understanding of how returns work. This way, you are confident that you can face any possible issues you might come across with. Of course, in a perfect selling world, you won't have to worry about Amazon returns, refunds, or cancellations. However, that's not the case all the time. That's why you have to be well-versed on how to handle it.

It's only natural to feel stressed about dealing with all of these since it disrupts your natural flow of how you deal with your business. That's why working with an Amazon account manager will be very helpful for you! If this is something you want for your business and as a seller, send us a message at [email protected]!

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