Return and Refund of Marketplace Orders: New Guidelines for Amazon Sellers
Return and Refund of Amazon Marketplace Orders: Immediate Replacement for Damaged Products
Immediate Replacement for Damaged Products – with this new policy, Amazon has already unsettled the seller community at the beginning of the year 2024. Accordingly, customers who receive damaged or non-functioning goods can demand immediate replacement – even before they have returned the original item.
Among Amazon sellers, the revised policy for the return and refund of Marketplace orders has understandably raised concerns. Previously, there were instances where customers simply did not think about actually returning the returned goods. With the new official Amazon return policies, this problem is likely to worsen – because the replacement is already on its way or has even arrived.
Amazon has stated that customers of the Amazon Marketplace must return the damaged goods to the seller within 30 days and that sellers will automatically receive a refund from Amazon if this does not happen – nevertheless, this new policy for the return and refund of Marketplace orders poses a risk, especially for FBA sellers, that they may send the replacement product, but the customer also keeps the original delivery without Amazon contesting this – and the seller ends up at a loss because they have involuntarily delivered two for the price of one.
14 instead of 30 Days: Return Policy at Amazon Shortened
As of April 25, 2024, a shortened return period for Amazon Marketplace goods now applies to selected products, which is likely to please many marketplace sellers. The affected categories include
Thus, the company implements the statutory return period, which is also 14 days. However, there is a catch: the shortened return period does not apply to Amazon products and devices as well as renewed products. These must still be returned within 30 days. This, in turn, could influence customers’ purchasing decisions. Sellers with Amazon Business must still accept the return policy.
Return Address in the Domestic Market Mandatory for Goods Under 25 Euros
Since October 5, 2021, Amazon sellers have had to deal with new guidelines for the return and refund of Marketplace orders. Sellers who sell on Amazon.de from abroad can no longer accept returns of goods and orders under 25 euros unless they provide a return address in the domestic market. This was reported by onlinehaendler-news.de. However, the basic return conditions have not changed.
The price limit of 25 euros includes VAT and shipping costs. Marketplace sellers have two options for low-priced orders:
If the relevant sellers cannot provide a domestic return address, Amazon will unilaterally fulfill the return policies and automatically refund the customer. However, the condition for this is that the return is made in accordance with the Amazon Marketplace Return Policies.
No Changes for Sellers Based in the Domestic Market
Amazon aimed to simplify the return process and save costs – also on the part of the sellers. This is because international returns are often more expensive than the product price, making it economically unfeasible for sellers to return the items. Affected sellers can set a domestic address in the Seller Central settings under “Account Information” > “Shipping and Returns” > “Return Information” > “Return Address Settings.”
Thus, with the renewed guidelines for the return and refund of Marketplace orders, nothing changed for most German sellers, as they generally already have a domestic address on file, such as their company headquarters. Similar rule changes also exist for other European marketplaces in France, Italy, or Spain. There, the price limit is also set at 25 euros. In the United Kingdom, Amazon has set the return policy at 20 pounds.
When Using Amazon FBA: Return Policies for Sellers Not Affected
The same applies to sellers who use the “Fulfillment by Amazon” (FBA) service. Since the online giant also takes care of return management here, there is in any case a domestic address in accordance with the Amazon Policies for the return and refund of Marketplace orders. The return is then sent to a return center of the e-commerce giant and not to the sellers themselves.
It has consequently become critical for marketplace sellers who sell via “Fulfillment by Merchant” (FBM). Previously, there was the option to provide customers with a free, prepaid Amazon return label.
With the removal of this regulation, FBA has become even more interesting for many sellers. If you belong to this group, you can learn about the advantages and disadvantages of Amazon’s fulfillment service here.
Here you can find more information about the return policies on Amazon: The Amazon A-to-Z Guarantee: Between Sales Genius and Return Madness.
Frequently Asked Questions
The following goods are, for example, excluded from return:
– sealed goods that have been opened after delivery (cosmetics, computer software, etc.)
– products that have been custom-made or clearly tailored to the customer’s needs (such as personalized handmade items)
– perishable goods
– services that have been fully rendered
– newspapers, magazines, or periodicals (except subscriptions)
– alcoholic beverages whose price is subject to fluctuations that sellers cannot control
Items do not necessarily have to be returned in the original packaging. Certain items, such as custom-made products, must be returned in the original packaging. It largely depends on the type of products.
Amazon grants its customers a voluntary return policy that goes beyond the legal regulations, which all marketplace sellers must also offer. Products can usually be returned within 30 days of receipt. Customers will receive a refund of the purchase price. However, this does not apply to goods in the categories of electronics, cameras, office supplies, music, movies, and video games – here the legal period of 14 days applies.
For clothing, shoes, and handbags, Amazon bears the return shipping costs. The retail company even covers these according to the Amazon return policies for items with a value of over 40 euros when customers return their items within 14 days.
In this case, Amazon will take action and enforce the return policy itself. In the worst case, the respective sellers will be excluded from selling on an Amazon marketplace.
Yes, sellers must provide immediate replacements if orders contain damaged or non-functioning goods since April 2024. This is stipulated in the return and refund policy for Marketplace orders. However, Amazon’s return conditions also state that customers must return the original goods within 30 days.
Sellers can contact Amazon customer support to clarify the status of the return and, if necessary, initiate an investigation. They also have the option to send a reminder to the customer or process a refund only when the goods have been received again.
If customers return products and receive a refund but do not send the item back to an Amazon warehouse, the FBA seller is usually entitled to a refund. To detect such cases, Amazon sellers typically use an external service like SELLERLOGIC Lost & Found Full-Service. This monitors all FBA transactions, and the money for any errors is automatically refunded to the seller.
Yes, a return can be canceled at Amazon. This is possible by selecting the “Cancel return” option in the order overview before the package has been sent back.
Yes, you can return multiple items at the same time on Amazon. During the return process, multiple items from different orders can be selected and returned together.
FBA errors are common on Amazon. There are two ways to get your money back in this regard: manually or automatically. The manual option takes a lot of your time as you have to deal with Amazon’s customer support, various Amazon reports, and long waiting times. The second option is easier by using software solutions like Lost & Found Full-Service from SELLERLOGIC. This not only identifies more FBA errors, but you also do not lose valuable time throughout the entire process.
Image credits in the order of the images: © sawitreelyaon – stock.adobe.com / © ifeelstock – stock.adobe.com
