Returns and refunds for marketplace orders: New policies for Amazon sellers
Returns and refunds for 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 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 to actually return the returned goods. With the new official Amazon return policies, this problem is likely to worsen – as 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 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 for FBA sellers. They may send the replacement product, but the customer could also keep the original delivery without Amazon contesting it – 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 is being 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
With this, the company implements the legal 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 could, in turn, 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 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 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 merchants 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 merchants based in the country
Amazon wanted to simplify the return process and save costs – also on the part of the merchants. Because international returns are often more expensive than the product price, making the return of the items economically unfeasible for sellers. Affected parties can set a domestic address in the Seller Central settings under “Seller Account Information” > “Shipping and Returns” > “Return Information” > “Return Address Settings”.
Thus, with the renewed policies for the return and refund of Marketplace orders, nothing changed for most German merchants, as they generally already have a domestic address on file, such as the company headquarters. However, similar rule changes also exist for the 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 merchants who use the “Fulfillment by Amazon” (FBA) service. Since the online giant also takes care of the return management here, there is in any case a domestic address according to 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 merchants themselves.
It is likely to have become critical for marketplace merchants 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 merchants. If you belong to this group, you can find out 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 the seller cannot influence
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 receiving the goods. 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 covers the return shipping costs. The retail company even takes this on according to the Amazon return policies for goods valued 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, the sellers in question will be banned 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 to process a refund only after the goods have been received back.
If customers return products and receive refunds 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 automatically refunds the seller for any errors.
Yes, at Amazon you can cancel a return. This is possible by selecting the option “Cancel return” 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 sent back together.
FBA errors are common at 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
