March 30, 2022
Written byNicasio Co III
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. 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.What is a Refund on Amazon? How to Get a Refund on Amazon?
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:
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:
- Go to your 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.
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 [emailprotected]!
Go from surviving to thriving on Amazon.
Use the power and influence of advertising to increase sales. Learn more about how you can benefit from our management expertise.
Book a Call
Read More
Amazon SEO Expert: Do You Know How To Hire the Right One?
Hiring a talented Amazon SEO expert can do wonders for your business. With the right experience and skills, these professionals can boost your product listing rankings and eventually lead to more sales. But acquiring an SEO talent must be a good fit for your business. They must meet your standards and the results you want […]
What is a Good Conversion Rate on Amazon and How Can You Achieve It?
Which do you prefer: three customers making a purchase or a thousand customers with only two making a purchase? Most likely, the former. On Amazon, conversions are essential in achieving and maintaining a high seller ranking. Amazon's algorithm considers various factors to rank listings, one of which is the conversion rate (CVR). If your CVR […]
How to Optimize Amazon Listing for More Visibility and Sales
Amazon is one of the most popular ecommerce platforms in the world, with millions of potential customers from around the globe. With the right strategies, Amazon shoppers will find your product more easily. One of these strategies involves the Search Engine Optimization (SEO) which ensures that your listing appears in relevant search results. Using the […]
FAQs
How do refunds work as an Amazon seller? ›
Sellers must match or exceed Amazon's own return policy. They are recommended to respond to return requests within 24 hours, and refund customers within 48 hours. Sellers are required to provide either a return address in the Elected Country or pay for return shipping costs.
Can you get kicked off Amazon for too many returns? ›If you return 5-10 items per month or more than 10% of what you order for no reason other than that you changed your mind, you may receive a warning. If you continue returning items, your account will be suspended or you'll even be banned from Amazon. So be careful with impulse buying.
Do Amazon sellers have to accept returns? ›However, in most cases, they aren't your fault. But here's the bitter truth: Amazon still requires sellers to accept the returns – even if it's the buyer's fault.
Does Amazon investigate returns? ›“Every item returned to Amazon is carefully inspected through a rigorous process by our trained Associates,” a spokesperson told Nexstar via email. “If it meets our high standards to be resold as new, it's re-listed for sale.” That's the first and most obvious answer: It gets sold again.
Who pays when Amazon refunds? ›Instant refunds are either refunded to your credit card or issued as an Amazon.ca Gift Card balance, depending on the instant refund type you selected. You still need to return your items within 30 days. We typically process returns within 3-5 business days after the carrier delivers the item to our Returns Center.
Does Amazon ever reject returns? ›Any items returned without original documentation will be rejected. Items that have been resized, damaged, or otherwise altered after delivery won't be accepted for return.
What happens if seller refuses to refund Amazon? ›The Amazon A-to-z Guarantee will also reimburse you if you do not receive an agreed upon refund from a third-party seller or if a third-party seller charged an amount greater than the amount you authorized for your purchase.
Can an Amazon seller reverse a refund? ›If you do not see this “Cancel” link, the refund has been released to the buyer and cannot be cancelled. In that case, you can inform the buyer about the incorrect refund and ask them to contact Amazon Customer Service to request that their credit card be charged again.
What is considered return abuse? ›Refund abuse (aka. returns abuse) occurs when a customer uses the returns policy of a merchant so much that it becomes unprofitable. Customers may also abuse refunds by faking returns/receipts, or reselling merchandise.
Do you get in trouble for returning too much? ›Generally, a consumer is safe from being arrested if they are honest with a store about the item they are returning.
How many Amazon refunds can you do? ›
You can do maximum 10 return. If you buy a book return after 6 day, you will get full refund. You can do this for 10 times. After this, your account will be block.
What to do if a seller refuses to refund? ›- Write a complaint letter: we have advice to help you do that and a sample letter.
- Consider getting help from a consumer organization like Call for Action, Consumer Action , or the Better Business Bureau.
Item defective or doesn't work: It could be broken or simply doesn't do what it's designed to do (for example, a power bank with a broken USB-C port). Bought by mistake: You accidentally hit Buy Now or forgot to delete an item from your cart before checking out.
Do Amazon returns get resold? ›Once you have returned a product to Amazon, it processes it and sells it to Amazon warehouses or liquidation retailers. Some returns make their way back to Amazon. However, most are put on pallets and sold in bulk to liquidation companies.
What does Amazon do with refunded items? ›It heads back to the seller for further processing, then it could go off to another Amazon warehouse for sorting and repacking, then on to a new customer, who could always choose to return the item again.