New Return Processing Fees starting June 1st
As if we were not feed enough and to make sure all sellers start leaving Amazon, there is a new Return Processing Fees that will increase the return fees for items that have a "high return rate" as defined by Amazon for different categories. They say the threshold is 10%, but it is category based and in our case with products mostly in the Toy Store is 4.7%, and Sports Store 8.7%. Very complicated to explain it so just read it here:
https://sellercentral.amazon.com/help/hub/reference/ZGEQLTM3RZXUV6T
What's to blame for high return rates is Amazon's ridiculous return policy that encourages customers to order multiple items to see which one they like and return the rest for any reason at seller's expense, or not cracking down on customers who buy one thing and return another item for a refund, or have a habit of buying an item, use it for while and then buy another one a few months later so they can have it brand new again and return the previous one. But sellers are now going to be punished for it.
New Return Processing Fees starting June 1st
As if we were not feed enough and to make sure all sellers start leaving Amazon, there is a new Return Processing Fees that will increase the return fees for items that have a "high return rate" as defined by Amazon for different categories. They say the threshold is 10%, but it is category based and in our case with products mostly in the Toy Store is 4.7%, and Sports Store 8.7%. Very complicated to explain it so just read it here:
https://sellercentral.amazon.com/help/hub/reference/ZGEQLTM3RZXUV6T
What's to blame for high return rates is Amazon's ridiculous return policy that encourages customers to order multiple items to see which one they like and return the rest for any reason at seller's expense, or not cracking down on customers who buy one thing and return another item for a refund, or have a habit of buying an item, use it for while and then buy another one a few months later so they can have it brand new again and return the previous one. But sellers are now going to be punished for it.
68 respuestas
Quincy_Amazon
Hello @Seller_6nOhE4cHNHnq1
Thank you for posting to the Forums and for providing that feedback. Your feedback will be passed along to the appropriate team.
Regards,
Quincy_Amazon
Seller_DjPs9cJ4AIab1
This kind of "open return" policy nearly destroyed Walmart.
Seller_A3JUDFfsAjt7i
is there a college degree for Amazon fees? because I feel like I need one at this point, just to decipher the fee labyrinth
Seller_tAfXR7sVBEoZS
Don't forget people can get free shipping for ordering multiple items then returning all but one of them.
Seller_HRcJa1gdGHeov
Your feedback will be passed along to the appropriate team.
To never be heard from again; that and $2.50 will get us a cup of coffee. This site is a giant black box, everything gets passed on and nothing gets done; absolutely ZERO transparency.
Seller_HRcJa1gdGHeov
Even if the fee was legit (which it is not), there is no way Amazon will calculate and apply this correctly. Just one more black box fee that we have to constantly fight with them about.
Seller_FAf2BjEFGtrGA
Is this only for FBA orders?
Seller_kP2ObpiacrM8G
It's based on category and they're all random percentages:
Return rate threshold
(Effective June 1, 2024)
Amazon Device Accessories 11.3%
Automotive and Powersports 9.1%
Baby Products 9.3%
Backpacks, Handbags, and Luggage 12.8%
Base Equipment Power Tools 7.1%
Beauty, Health and Personal Care 5.5%
Business, Industrial, and Scientific Supplies 6.0%
Compact Appliances 12.6%
Computers 11.4%
Consumer Electronics 11.2%
Electronics Accessories1 8.8%
Everything Else2 4.8%
Eyewear 12.1%
Fine Art 5.6%
Full-Size Appliances 11.9%
Furniture 9.6%
Grocery and Gourmet 2.9%
Home and Kitchen 8.1%
Jewelry 10.8%
Lawn and Garden 7.7%
Lawn mowers and Snow Throwers 9.5%
Mattresses 9.3%
Media - Books, DVD, Music, Software, Video 5.1%
Musical Instruments and AV Production 9.2%
Office Products 4.4%
Pet Products 10.2%
Sports and Outdoors 8.7%
Tires 8.7%
Tools and Home Improvement 8.7%
Toys and Games 4.7%
Video Game Consoles 10.7%
Video Games and Gaming Accessories 6.5%
Watches 12.0%
Seller_VmNNeXuseqgMV
I hear Amazon is going to charge a fee for posting on this forum!
Seller_QjYfjZwWH8D0l
The economics of Free Shipping and Free Returns are at the breaking point, and Amazon must find a way to discourage frivolous returns rather than piling them on the backs of sellers.
Perhaps the numbers can still work for lightweight and non-breakable products like clothing. But for fragile or larger goods, the ever-increasing costs of transportation, supplies, and labor have made roundtrip free shipping unsustainable.
Buyers need to have some skin in the game that nudges them to understand the product before they place an order. We get a few scammers, but most returns are from buyers who made avoidable mistakes they don't wish to admit. Customers who return a product titled 10" Round Dinner Plate and call it "defective" because it's too large should be held accountable by paying the shipping charges.
In the early days of free shipping, you often heard how it removed "friction" from shopping online. It was a compelling argument, and I don't doubt that the data show that it generates sales. But it also generates returns--lots of them. We now have online window shoppers who return every other purchase at a time when return processing costs are skyrocketing.
And what about the environmental impact of billions of products making multiple unnecessary trips across the country--an issue Amazon claims to care so much about?
Is there a way to incentivize buyers to keep an item rather than return it? Perhaps a rebate program could work. Give buyers who don't return their purchase an automatic 10% rebate after the return window closes. Offer a flat-rate discount for buyers whose return percentage stays below a threshold.
How much cheaper could everything be if Amazon and Walmart stopped socializing the costs of frivolous returns?
