Guide on Handling Amazon FBA Returns and Refunds Efficiently

When it comes to returns, sellers always have lots of questions. However, these are answered by Amazon FBA. Amazon FBA handles fulfillment, return processing, and refunds. The key is to understand how all of this works. 

In this article, we will explore everything regarding handling Amazon FBA returns and refunds. So, if you are ready, let’s get started! 

Amazon FBA Return Policy 

Amazon FBA stands for fulfillment by Amazon. Sellers who join this program agree that Amazon handles the fulfillment of orders on their behalf. This also includes handling customer returns. As an FBA seller, you are not in control of the returns; thus, even if it’s the buyer’s fault, the item can still be accepted as a return. 

Customers are able to request a return within 30 days of receiving their order. 

Types of Returns on Amazon FBA 

When it comes to returns for sellers who are part of the Amazon FBA program, it is vital to understand a few main types of returns. So, let’s take a look at each of these in more detail. 

Sellable Returns 

Some returns are returned to your active inventory. These are considered “sellable”. If you have concerns regarding the items actually being sellable, you can cancel the automatic return and inspect the order yourself before it reaches the warehouse. 

Defective Returns 

Some returns can be returned as “defective.” In this case, the item can be defective or damaged, and the customer will be refunded. However, if you do not place a removal order, the damaged/defective item will be returned to your inventory under the “unsellable” category. 

Damaged Returns 

Other returns are classified as damaged. If the item was damaged during the shipping process, Amazon takes the fault, making you eligible for reimbursement. However, if the item was damaged and it is your responsibility, then you cannot receive reimbursement. 

Carrier Damaged Returns 

One more type of return is a return of an item that was damaged in transit. In this case, the party to blame is the shipping company. These types of returns should be reimbursed. However, to qualify for reimbursement, do not request the item to be returned to you and avoid opening a removal order. 

Customer Damaged Returns 

Another popular type of return is damaged returns, but the key here is that customers damage these. The items classified as “customer damaged” will not be returned to the warehouse. Thus, you can stay calm. For instance, if the customer opens an item, it is no longer considered as an item in a new condition. 

In any case, if you want to inspect the return yourself, you can simply place a removal order from Amazon FBA before deciding what to do with the returned products. 

How to Manage Refunds on Amazon? 

Managing refunds on Amazon can be quite complex. Yet, it is important to understand how this process works to manage your online store more efficiently. 

For instance, when the customer returns an item, Amazon refunds it and charges the seller a refund fee. However, there are certain expectations in this scenario. You, as a seller, can also be eligible for a refund or reimbursement if the customer returns a damaged or defective product. To be eligible to file a claim for a refund, you must provide supporting evidence (the photo/video materials of the damaged product). If you are eligible, Amazon will refund you. 

Another common scenario is when inventory goes missing during the Amazon FBA return process. In this case, the seller is eligible for reimbursement by Amazon. As a seller, you will have to file a reimbursement claim with supporting evidence of lost inventory.

How Refunds and Returns Impact Amazon FBA Sellers? 

Refunds and returns can greatly influence your seller’s reputation on Amazon. This is one of the key reasons sellers aim to reduce the amount of returns. 

The return rate affects the seller’s rating, thus affecting the business and the number of sales. You should try to keep return rates as low as possible and work on improving customer satisfaction rates for increased sales. 

Strategies to Minimize Amazon FBA Returns 

For some sellers, Amazon FBA returns become headaches. Thus, it is always better to implement strategies to minimize returns. 

Communicate with Your Customers 

Communication is key, especially when it comes to customer service. Make sure to clearly describe what customers can expect from the product via your product listings. Also, ensure that the images you include in the listing display the product in detail. Making sure your listings are accurate allows your customers to have better expectations regarding the products they are ordering, decreasing the chances of dissatisfaction and returns. 

Clearly Define Return Policies 

To avoid the headaches of returns with Amazon, FBA makes sure to set a clear and fair return policy. It will help to improve customer satisfaction and decrease the number of returns. You can mention the return policy on your product listings. 

Use Dedicated Tools

Another way to efficiently handle returns and refunds is to use dedicated Amazon tools. For instance, Amazon provides the Manage Returns tool, which allows sellers to issue refunds, view and process returns, and directly communicate with customers. 

Ensure High-Quality 

Before purchasing inventory or choosing suppliers, make sure you are purchasing high-quality stock. High-quality products automatically decrease the chances of returns and contribute to increased customer satisfaction rates. 

Following these tips and strategies will allow you to keep the return and refund rates low while improving your business reputation and your seller’s rank on Amazon. 

Grow Your Business while Minimizing Returns Starting Today 

Improve your store management and minimize returns with Enso Brands. We are a full-service Amazon agency offering all the necessary services for high-quality Amazon store management. 

Our services range from inventory management to enhanced marketing strategies. If you want to grow your store to a seven-figure income business, then you are in the right place. 

Contact us to find out every way in which we can help you grow your business.