Amazon Adds Return-Reason Settings for FBA Partial Refunds
Amazon has added a feature allowing FBA sellers to configure partial-refund eligibility and percentages by customer return reason across seven markets, including the United States, the United Kingdom and Germany.
What are the key facts?
- 1Amazon adds eligibility settings for FBA partial refunds by customer return reason
- 2Available to FBA sellers in the United States, the United Kingdom, Germany, France, Italy, Spain and Canada
- 3Sellers can set partial-refund percentages by ASIN and return reason, with up to three configurations supported
- 4Amazon automatically reviews customer eligibility based on purchase history and account circumstances
What happened?
Amazon recently added a feature to FBA Partial Refunds that allows sellers to set partial-refund eligibility by customer return reason. It applies to FBA sellers in the United States, the United Kingdom, Germany, France, Italy, Spain and Canada. Sellers can allow all ASINs to participate by return reason, or upload an Excel file to set partial-refund percentages for specified ASINs and specified return reasons. The system supports up to three configurations. Partial refunds are intended to allow customers to keep the products, reducing reprocessing and secondary delivery costs after products are returned to a warehouse. However, whether a customer qualifies for a partial refund is still automatically reviewed by Amazon based on the customer’s purchase history and account circumstances. For apparel, home goods, small appliances, accessories and cross-border products with high return-shipping costs, the feature may reduce reverse-logistics costs, but it may also increase discounted sales and inventory losses. Sellers need to set percentages separately based on product residual value, return reason and refurbishment costs, rather than simply applying the same refund rule to all ASINs.
What does this mean for cross-border sellers?
FBA sellers can set partial-refund eligibility and percentages by return reason and ASIN, allowing customers to keep products while reducing warehouse returns, reprocessing and secondary delivery costs. Apparel, home goods, small appliances, accessories and products with high return-shipping costs warrant closer evaluation, but discounted sales and inventory losses must also be included in the calculation.
What should sellers do now?
- 1For the United States, the United Kingdom, Germany, France, Italy, Spain and Canada, separately identify high-return ASINs and record return reasons, product residual value and refurbishment costs. Create a market-by-market evaluation table to support refund-percentage decisions.Profit calculator
- 2In FBA Partial Refunds, first design up to three configurations for ASINs with high return-shipping costs and products that customers can retain. Set different percentages by return reason and complete a field and ASIN review checklist before uploading the Excel file.