The following examples illustrate how we calculate the refund administration fee.
Suppose you receive the following two-item order:
Item A (item price) | 600.00 AED |
Item B (item price) | 50.00 AED |
Shipping on Item A | 40.00 AED |
Shipping on Item B | 5.00 AED |
TOTAL | 695.00 AED |
You then refund Item A, including shipping and gift wrap (this is commonly done if the customer cancels the item before the order ships). Assuming the referral fee for the product category is 15%, the initial holdback is calculated as follows:
= Holdback Rate [Referral Fee x (Item A + Shipping Item A)]
= 20% x [15% x (600 AED + 40 AED )]
= 20% x [15% x 640 AED ]
= 20% x [96.00 AED ]
= 19.2 AED
But as the holdback for this product cannot be greater than 15 AED, it is capped at 15 AED.
Suppose you receive the same two-item order as described above, but this time you refund the order in full, including shipping and gift wrap (this is commonly done if the customer cancels the order before it ships). The initial refund administration fee calculation applies to each item in the refund, as follows:
= 20% x [Referral Fee x (Item A + Shipping Item A)]
= 20% x [15% x (600 AED + 40 AED)]
= 20% x [15% x 640 AED]
= 20% x [96.00 AED]
= 19.2 AED
= 20% x [Referral Fee x (Item B + Shipping Item B)]
= 20% x [15% x (50 AED + 5 AED)]
= 20% x [15% x 55 AED]
= 20% x [1.65 AED]
= 1.65 AED
Refund administration fees cannot exceed 15 AED, so the first is capped at 15 AED and the second is taken as is at 1.65 AED, for a total administration fee of 16.65 AED. Other item-related charges, such as shipping, are included in the refund administration fee calculation, but tax is not. Amazon does not retain a portion of any refunded taxes.
Suppose you receive the following three-item order:
Item A (quantity: 2) | 600.00 AED |
Item B | 50.00 AED |
Shipping on Item A | 20.00 AED |
Shipping on Item B | 5.00 AED |
TOTAL | 675.00 AED |
You then refund both quantities of Item A, excluding shipping. Because the refund administration fee calculation applies to each unique item in a refund and multiple quantities of a single item comprise a single item, the calculation is applied one time for both Item A's. Assuming again that the referral fee for items in this category is 15%, the initial refund administration fee (before applying the 15 AED cap) is calculated as follows:
= 20% x [Referral Fee x (Item A's)]
= 20% x [15% x 600 AED]
= 20% x [90 AED]
= 18.00 AED
As this refund administration fee is greater than 15 AED, it is capped at 15 AED. No refund administration fee calculations apply to subsequent refunds involving this item because the 15 AED cap is already met.