Amazon breaking its own policy


#1

Might be a dead-end question, but does anyone have a way of contacting Amazon about a potentially serious flaw in its MCF refund procedure?

I’ve tried to go down the seller support route, but all I get is that the refunds are in accordance with Amazon policy etc. The problem is that they are not.

I opened a thread in the FBA category, but got no replies, so I need to find a way to contact someone with some authority at Amazon who can fix this.


MCF fees for lost packages are being taken twice
MCF fees for lost packages are being taken twice
#2

What is the flaw you have found?


#4

They are charging the MCF fee twice when issuing reimbursements for lost packages. If the package is lost Amazon policy is that the seller gets a replacement item added to their inventory or reimbursed for how much they would have made if no replacement is available.

My items are unique to me, so I always get a reimbursement, but the amount is always wrong. The breakdown of the most recent one was

I sold the item on Etsy on 04/20/22 for $14.75 including shipping. I booked this on the MCF fulfillment system and when the item was sent out next day by Amazon I was debited $5.55. So I am left with $9.20.

By 05/01/22 the package still had not been received by USPS so I refund my customer the $14.75 and make a claim with Amazon. The claim is accepted and they reimburse me $14.75 minus $5.55 MCF fee = $9.20.

The flaw is that I already paid the $5.55 on 04/20/22, so it doesn’t need to be deducted again. I end up with $9.20 minus the $5.55 already paid = $3.65. That is wrong as I should have $9.20.

If the item had sold for $10 and the MCF fee was $6, then they would give me a reimbursement for $4. Take away the $6 already paid and I would have to pay them $2 for every package that was lost.

Someone, somewhere has put the wrong calculation on the seller support system and I’m guessing this is being done wrong every time as it’s wrong on all my reimbursements. I only have about 150 MCF orders a month, but I’ve had 6 lost packages so far this year. If this is wrong for all sellers for however many months/years this has been going on it could add up to a lot of money.


#5

I could be wrong but it doesn’t seem like there’s a flaw at all.

You said Amazon policy is to reimburse you “what you would have made.” Well, you said you made $9.20 after you paid the Amazon fees.

But then the package was lost, so you refunded your customer. You then filed a claim and Amazon reimbursed you “what you would have made,” which is $9.20.


#6

I was clearly paraphrasing. The intention of the policy is that the seller doesn’t lose out because the package was lost. I don’t imagine you’d be too happy if your fees were charged twice.

My post was asking if there was a way of contacting Amazon about a serious problem without getting the bot answers from seller support. Do you know a way?


#7

So, the reimbursement value is stated.

https://sellercentral.amazon.com/help/hub/reference/200332450#mnd_2jc_jcb-6


#8

Why don’t you re-consider this from the perspective of shipping things yourself and making claims yourself.

You would prepare the package (at your cost) and provide it to the carrier (USPS was your example). Assume that you have insurance.

When the lost package is reimbursed, it will be for your invoiced cost.

You will not get the packaging cost for the freight cost reimbursed.

When you ship it a second time, pay the for the packaging and for the freight cost a second time along with the cost for the replacement item. Obviously not a good financial situation for you to reship, but better than an angry customer. You would instead have needed to return their payment, so you would be in a negative position rather than a reduced profit.

This is pretty much what Amazon does, but with their standard process, the net earnings from the sale are refunded in addition to the item cost.

Now, if you stopped here and never reshipped the product, you would have nothing to complain about.

However, your customer would not be happy and you would need to refund them. You would still take the hit.

You need to keep in mind that shipping and handling costs are sunk costs. If you had referral fee cost with Amazon for FBA, you get most of those back, but since it is MCF, that is not their problem.

Amazon is doing exactly what they committed to do. However, they are not covering the fulfillment costs you were hoping they would cover. That is within a reasonable policy.

You will not convince them to do otherwise.


#9

Have it your way little fella!


closed #10

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