Clarification about the refund and reimbursement process for FBA return


#1

Hi, I’m trying to wrap my head around how this makes any sense for a product costing $22

  1. Customer orders a product via FBA for say $15 (this is the net amount credited to our seller account)
  2. Customer initiates a return request and gets around $20 (this is the net amount debited from our account). This is because of pick and pack fees not being refunded in addition to a $1 or so refund admin fee. So far makes sense.
  3. Customer does not return product within the 45 day window. Therefore a reimbursement is due.
  4. Amazon reimburses us $15
  5. I’m assuming then they re-charge the customer for the full $22 since he didn’t return anything.

This is a BIG problem. Why doesn’t amazon just undo this refund that they issued to the customer? Sure, I’d understand keeping a dollar for refund admin, but this is like charging pick and pack fees twice.


#2

I have a product that sells for $14.99.

Pick and Pack is $3.48
Referral fee is $1.20
I receive $10.31 net

If the buyer wants a refund Amazon deducts $14.99 from my account, but credits back the $1.20 referral fee, plus charging a $0.24 refund administration fee. So in total they deduct $14.03 from my account, or $3.72 more than I originally received.

A few weeks later I am reimbursed the original $10.31 I would have received if they don’t return the product - in my case since it’s a grocery product there are no returns so I automatically get a refund after 45 days.

At the end of the day when you have a refund and reimbursement you will still have to pay the FBA pick and pack fee and a small refund administration fee. So they are only charging you pick and pack fees once.


#3

Ok then I’ll use your example. You received 10.31 for the original purchase. You also received 10.31 for the reimbursement. Lastly, amazon deducted 14.03 from your account for the refund.

Thus, you received a net of $6.59. Now, if the customer did not return the item, you would have gotten 10.31 net.

This seems to me like you are out more money ONLY because the customer initiated a return request and didn’t follow through on it. Of course, you still are stuck with the small refund admin fee, but this doesn’t make up for the almost $4 discrepancy.

Correct me if I’m wrong anywhere, but does this make sense?


#4

At the end of the day if a customer returns an item (or they don’t return it and Amazon reimburses me) I am out the pick and pack fee and the refund administration fee. Obviously I would prefer to not be out any money but that’s part of the price you pay for having Amazon deal with all of your returns.


#5

You are absolutely right. There is double FBA fee charge during refund/reimbursement, even though the item is only pick/packed once.

It is a known issue with a lot of discussions. Just google it. Unfortunately this type of claim will be denied immediately.

I feel this is a major reason why FBA immeditely refund custumer when they start a return.


#6

I would phrase it as you pay the pick and pack fee even if the item is returned or refunded. Amazon still had to pay to get the item off the shelf and ship it and that’s what they’re charging you for. Saying you’re charged double fees doesn’t make sense when you ultimately just pay for one pick and pack fee.


#7

If you looked at op’s scenario, buyer started return but never returned the item, so amazon did two things: refund custermer; 45 days later reimburse seller. There are no shipment involved at all but fba fee is charged in reimbursement. Makes sense?
Same thing applies for reimbursement of lost/damaged inventories.

In your example, you get $10.31 for intitial order, then refund $14.99, then reimbured $10.31. So the net effect is you get about $6.31 when buyer started return but did not actually return it. If the buyer never start the return, you should get $10.31 in your account.