Returns and Refunds of Marketplace Orders: New Policies for Amazon Sellers
Returns and Refunds of Amazon Marketplace Orders: Immediate Replacement for Damaged Products
Immediate replacement for damaged products – with this new policy, Amazon unsettled the seller community as early as the beginning of 2024. According to this, customers who receive damaged or non-functional goods can demand an immediate replacement – even before they have returned the original item.
Among Amazon sellers, the revised policy for returns and refunds of marketplace orders has understandably raised concerns. Previously, there were instances where customers simply did not think about actually returning the goods. With the new official Amazon return policies, this problem is likely to worsen – as the replacement is already on its way or may have even arrived.
Amazon has stated that customers of the Amazon Marketplace must return the damaged goods to the seller within 30 days, and sellers will automatically receive a refund from Amazon if this does not happen. However, this new policy for returns and refunds of marketplace orders poses a risk, especially for FBA sellers, as they may send the replacement product while the customer keeps the original delivery without Amazon raising any objections – leaving the seller at a loss because they have inadvertently delivered two items for the price of one.
14 instead of 30 Days: Return Policy at Amazon Shortened
Starting April 25, 2024, a shortened return period for Amazon Marketplace goods will apply to selected products, which is likely to please many marketplace sellers. The affected categories include
This means the company is implementing 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 refurbished products. These must still be returned within 30 days. This could, in turn, influence customers’ purchasing decisions. Sellers with Amazon Business must still accept the return policy.
Return address in the country mandatory for goods under 25 euros
Since October 5, 2021, Amazon sellers have had to deal with new policies for returns and refunds of marketplace orders. Sellers who sell on Amazon.de from abroad can no longer accept returns for goods and orders under 25 euros unless they provide a return address in the country. This was reported by onlinehaendler-news.de. However, the basic return conditions did not change.
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 country
Amazon aimed to simplify the return process and save costs – also for the sellers. 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.”
With the renewed policies for returns and refunds of marketplace orders, nothing changed for most German sellers, as they typically 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, where the price limit is also set at 25 euros. In the UK, Amazon has set the return policy limit 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 handles return management in this case, there is always a domestic address in accordance with the Amazon policies for returns and refunds 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 attractive for many sellers. If you are among them, 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 items are, for example, excluded from returns:
– 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 (e.g., 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 their 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 offers its customers a voluntary return policy that goes beyond the legal regulations, which all marketplace sellers must also provide. Products can generally 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, camera, office supplies, music, movies, and video games – here, the legal period of 14 days applies.
For clothing, shoes, and handbags, Amazon covers the return shipping costs. The retail giant even assumes these costs according to the Amazon return policies for items with a value over 40 euros when customers return their items within 14 days.
In that case, Amazon will take action and enforce the return policy itself. In the worst-case scenario, the affected sellers will be banned from selling on an Amazon marketplace.
Yes, since April 2024, sellers must provide immediate replacements if orders contain damaged or non-functional goods. 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 to process a refund only after 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 service monitors all FBA transactions and automatically refunds the seller for any errors.
Yes, a return can be canceled on Amazon. This is possible by selecting the “Cancel Return” option in the order summary before the package has been sent back.
Yes, multiple items can be returned to Amazon at the same time. During the return process, several items from different orders can be selected and sent back 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 requires a lot of time, as you have to deal with Amazon customer support, various Amazon reports, and long wait times. The second option is simpler, using software solutions like the Lost & Found Full-Service from SELLERLOGIC. This not only identifies more FBA errors but also saves you valuable time throughout the entire process.
Image credits in the order of the images: © sawitreelyaon – stock.adobe.com / © ifeelstock – stock.adobe.com
