Amazon FBA Return Processing Fee Changes 2024

Beginning June 1, 2024, Amazon will charge a return processing fee for high return rate products in all categories (except Apparel and Shoes & Boots). The fee will only apply to products with a return rate that exceeds a specific threshold for each category.

 

There is no return processing fee for the following situations

 

1. The product (sub-ASIN) with less than 25 units per month fulfilled by Amazon are exempt.

 

2. If you sign up for the Amazon Logistics New In Stock Discount Program, Amazon will waive the return processing fee for up to 20 products for each qualifying parent ASIN. Returned merchandise must be delivered to an Amazon Operations Center within 180 days of the date of the first inventory receipt.

 

For more information and to register, copy the link to your browser to view the Amazon Logistics New In Stock Discount Program.

https://www.sellercentral.amazon.dev/help/hub/reference/GWHQRT98SAZC29VQ

 

Special Notes:

 

For apparel and footwear, Amazon will charge a return processing fee for each product returned by the buyer. Amazon does not set any thresholds and will charge the appropriate fee at the time of return.

 

Other than apparel and footwear, please copy the link to your browser to check the Return Processing Fee Charge → Return Processing Fee Price List and Calculation Criteria:

 

https://sellercentral.amazon.com/help/hub/reference/external/G64LS955WNFT6EDP?locale=zh-CN

 

What is a high return rate product?

 

The return rate for merchandise is the portion of merchandise sold in the month that is returned in the current month and the following two calendar months, as a percentage of the quantity of merchandise sold in the month.

 

For example, the return rate for June is the portion of merchandise sold in June that is returned during June, July, and August as a percentage of the merchandise sold in June.

 

A high return rate product is an product that exceeds the return rate threshold (which applies to all products except apparel and footwear), and you will only be charged a return processing fee if your product's return rate exceeds the threshold.

 

Seller Wang sells 1,000 pieces of pet supplies in June. In the following months of June, July, and August, 120 pieces have been returned. The return threshold for this example merchandise category is 10.2% *. Therefore, in the month of shipment and the following two months, if more than 102 products are returned (10.2% of the 1,000 products delivered), a Returns Processing Fee will apply. In this example, 120 products were returned, so a return processing fee will be charged for 18 products. This fee will be charged between September 7th and 15th.

 

*Please note that this return rate threshold is an illustrative example.

 

So what constitutes exceeding the return rate threshold? View the table below for the return rate thresholds for each category (applies to all products except apparel and footwear).

Special Tip:

 

Amazon regularly reviews fee categories and updates them. The return rate thresholds that apply to high return rate fees for a given month are based on your product's fee category at the end of the 3-calendar month measurement period.

 

Copy the link to your browser to view the fee category guidelines. https://sellercentral.amazon.com/gc/fee-category-guidelines

 

Returns Processing Fee Rate Cards

 

Suppose you exceed the threshold established for your products regarding return rates. In that case, the additional units over the threshold will incur a fee that will be calculated according to the size and weight of your product. If your product is big and dense, then the fee will be even higher compared to a small and lightweight product. If your product weighs more than 3 lbs then the fee is proportional to the weight depending on multiple weight classes set by Amazon. Below is the chart of current rates.

 

Check product return rate

 

1. Starting May 1, 2024, sellers can view the return rate of their products on the Amazon Logistics Returns page (aka the Buyer Returns Dashboard).

 

Copy the link to view the Amazon Logistics Returns page: https://www.sellercentral.amazon.com/fba/returns/

 

2. Return rate thresholds for each category are available on May 1, 2024 on the Help page and the Amazon Logistics Returns page (aka the Buyer Returns Control Panel).

 

3. Sellers can view historical trends in their return rates, as well as historical trends in the number of delivered quantities, returned products, and the number of returned products that exceed the thresholds that will be charged.

 

View Returns Processing Fee Charges

 

1. Amazon Logistics Buyer Returns Report:

 

After payment, sellers can download the report from the “Amazon Logistics Report” section of the seller's platform to view a detailed breakdown of the number of items delivered, returned items, the number of returned items exceeding the threshold, and charged items.

 

For details, please copy the link to your browser: https://sellercentral.amazon.com/reportcentral/CUSTOMER_RETURNS/

 

2. Payment-Transaction Report:

 

Sellers can view monthly return charges per ASIN, including how the charges were calculated, on the Manage My Payments tool.

 

Please copy the link to your browser for details: https://sellercentral.amazon.com/gp/payments-account/view-transactions.html

 

3. SKU Reporting:

 

Sellers can view the total non-apparel and non-footwear return fees paid at the SKU level on the SKU Economics tool.

Please copy the link to your browser for details: https://sellercentral.amazon.com/sereport

 

How to reduce the number of returns on Amazon

 

1. Brief the customers by stating the correct weight, size/measurements, and the way the product is to be used.

 

2. Pack products correctly to avoid damages during the shipping process.

 

3. A product should always be associated with accurate product ID/UPC and labeling to avoid order mistakes.

 

4. Add high-quality images, video and other resources to give the customers a clear picture of the product.

 

5. As a part of the PLS program, it will help to offer the product lifecycle support so that the customers can avail post-purchase services to avoid high returns.