Over the last month, we have had > 10,000 FBA Fulfilled orders marked as "Shipping Address Undelieverable".
Each time this occurs, Amazon refunds the customer in full, and keeps our fulfillment fee and 20% of our referral fee. In addition, we do not receive the item back. This costs us $20 to $40 per order, and our the frequency of this occuring is greatly increasing (> 500 orders per day now).
Needless to say, this would bankrupt anyone at scale. If this is not remedied quickly, it will cripple our cashflow and may force us to choose to close our listings, versus hemmoraging far more money than destroying the inventory by continuing to sell.
We have been selling on Amazon for nearly 10 years and we have never seen anything like this. We can get zero assistance from seller support when we open cases.
If a moderator can assist, it would be greatly appreciated.
"Each time this occurs, Amazon refunds the customer in full,.."
That is not how Amazon works. The buyer is not billed until the shipping is purchased.
Amazon is a business, and they all work the same way. If they did what you stated, as you said, "this would bankrupt anyone at scale". That is why billing is submitted at the time of shipment.
Do not be surpsied, someone use the software to order from your store to HOLD your items to prevent your selling.
Report him,Please
Yet, Another reason to stop using FBA, FBA is bad for business, FBA is a scam at the moment. it was not like this in the past.