FBA Fulfillment Fees charges to Seller on Customer Returns
Lately I've been seeing numerous return items on our FBA Fulfilled items. We do not have issue with the return for as long as the customer return it in a sellable condition so it can be return to our inventory and resell. The issue we start noticing is the that "Amazon retains 20% of the original order-related fees, up to a maximum of AED 15, for each line item in the refund."
For instance, one of the returned order value is AED175 (reason of return: Refused Delivery). Of course customer will be refunded with the full amount. While for us seller, we got AED-43.05 charged as FBA Fulfillment fee.
We earned AED0 with the order and at the same time we loss AED43.05 with it. Moreover, the item will then be returned to amazon fba inventory then again it will be resell to a different customer, amazon again will charge the same fulfillment fee which makes them 2x the amount of the fulfillment fee.
How can this be solve for FBA Sellers? We are making money on other items and losing on the returns we do not have control. At least if the reason is at customer's fault, FBA Fulfillment fee must be waived.
1 reply
Seller_IOkoD5v9ONkXa
I think you mean Refund Administration Fees. However, we have never been charged Refund Admin fee on "Refused Delivery" cases. We have had 4 such cases last month itself, and essentially we lose the FBA Fulfilment fee per item. Refused Delivery is the biggest menace for all Sellers on Amazon, and Amazon does not have any Policy in place to address the losses of Sellers. There is no incentive for Amazon to frame a Policy, as Amazon still makes money on Refused Delivery cases also. Welcome to the world of Business!
FBA Fulfillment Fees charges to Seller on Customer Returns
Lately I've been seeing numerous return items on our FBA Fulfilled items. We do not have issue with the return for as long as the customer return it in a sellable condition so it can be return to our inventory and resell. The issue we start noticing is the that "Amazon retains 20% of the original order-related fees, up to a maximum of AED 15, for each line item in the refund."
For instance, one of the returned order value is AED175 (reason of return: Refused Delivery). Of course customer will be refunded with the full amount. While for us seller, we got AED-43.05 charged as FBA Fulfillment fee.
We earned AED0 with the order and at the same time we loss AED43.05 with it. Moreover, the item will then be returned to amazon fba inventory then again it will be resell to a different customer, amazon again will charge the same fulfillment fee which makes them 2x the amount of the fulfillment fee.
How can this be solve for FBA Sellers? We are making money on other items and losing on the returns we do not have control. At least if the reason is at customer's fault, FBA Fulfillment fee must be waived.
FBA Fulfillment Fees charges to Seller on Customer Returns
Lately I've been seeing numerous return items on our FBA Fulfilled items. We do not have issue with the return for as long as the customer return it in a sellable condition so it can be return to our inventory and resell. The issue we start noticing is the that "Amazon retains 20% of the original order-related fees, up to a maximum of AED 15, for each line item in the refund."
For instance, one of the returned order value is AED175 (reason of return: Refused Delivery). Of course customer will be refunded with the full amount. While for us seller, we got AED-43.05 charged as FBA Fulfillment fee.
We earned AED0 with the order and at the same time we loss AED43.05 with it. Moreover, the item will then be returned to amazon fba inventory then again it will be resell to a different customer, amazon again will charge the same fulfillment fee which makes them 2x the amount of the fulfillment fee.
How can this be solve for FBA Sellers? We are making money on other items and losing on the returns we do not have control. At least if the reason is at customer's fault, FBA Fulfillment fee must be waived.
1 reply
1 reply
Seller_IOkoD5v9ONkXa
I think you mean Refund Administration Fees. However, we have never been charged Refund Admin fee on "Refused Delivery" cases. We have had 4 such cases last month itself, and essentially we lose the FBA Fulfilment fee per item. Refused Delivery is the biggest menace for all Sellers on Amazon, and Amazon does not have any Policy in place to address the losses of Sellers. There is no incentive for Amazon to frame a Policy, as Amazon still makes money on Refused Delivery cases also. Welcome to the world of Business!
Seller_IOkoD5v9ONkXa
I think you mean Refund Administration Fees. However, we have never been charged Refund Admin fee on "Refused Delivery" cases. We have had 4 such cases last month itself, and essentially we lose the FBA Fulfilment fee per item. Refused Delivery is the biggest menace for all Sellers on Amazon, and Amazon does not have any Policy in place to address the losses of Sellers. There is no incentive for Amazon to frame a Policy, as Amazon still makes money on Refused Delivery cases also. Welcome to the world of Business!
Seller_IOkoD5v9ONkXa
I think you mean Refund Administration Fees. However, we have never been charged Refund Admin fee on "Refused Delivery" cases. We have had 4 such cases last month itself, and essentially we lose the FBA Fulfilment fee per item. Refused Delivery is the biggest menace for all Sellers on Amazon, and Amazon does not have any Policy in place to address the losses of Sellers. There is no incentive for Amazon to frame a Policy, as Amazon still makes money on Refused Delivery cases also. Welcome to the world of Business!
