How to Figure Return Cost
With the amount of returns that I am currently getting I need to figure out what it is costing me and then add that to my selling price. I think I’m at a point where I can no longer absorb the whims of these Amazon return entitled people.
And yes, I have tweaked and re written and rephotographed until I am blue in the face. These are items I have been selling since day one that used to get very limited returns but are now getting more and more returns for seller faulted BOGUS reasons.
Is there a report that shows costs? I found the return report but it just shows total return amount $ for FBM. Is there one that shows all? FBA and FBM and cost.
How to Figure Return Cost
With the amount of returns that I am currently getting I need to figure out what it is costing me and then add that to my selling price. I think I’m at a point where I can no longer absorb the whims of these Amazon return entitled people.
And yes, I have tweaked and re written and rephotographed until I am blue in the face. These are items I have been selling since day one that used to get very limited returns but are now getting more and more returns for seller faulted BOGUS reasons.
Is there a report that shows costs? I found the return report but it just shows total return amount $ for FBM. Is there one that shows all? FBA and FBM and cost.
30 replies
Seller_qAugRk38pcRAY
I’m not sure if there is a report showing total of FBA & FBM returns.
But the out of pocket cost to the seller for each FBA return is basically the original “FBA pick and ship fee” for the order and the “return administration fee” (either $5 or 20% of the referral fee, whichever is less) for the return. If you add that amount to all your FBA items, you should be able to cover all your return cost.
Seller_umpLFrxn8qHYX
Once again I had this discussion with myself the other day. I have constantly refined my listings to avoid returns but compared to other venues Amazon leads by far in returns. Sure my sales on Amazon are much greater than other venues but returns have gotten out of hand. I gave up on figuring it all out and as a result Amazon is now $1.00 more per item than over venues across all 579 of my listings. Just the cost of doing business on Amazon.
Seller_yD2lkLvncPSDC
Go to Business Reports > Seller Performance and set the date to at least 6 months. Find the Refund Rate column and scroll all the way to the bottom to get the total refund rate.
Seller_la6yWqhB9Jzwb
A typical return costs me:
FBM: Return shipping, new packaging, time, fees
FBA: Avg $5 loss between payment and return, then removal/re-send in fees, repackaging x however many units I have of that item (usually 2 or 3)
So let’s say $6 for every return. If you do that math, then pull the reports to gather your return %, you can see how much to add to every item.
Some you won’t touch - loss leaders that attract other sales, or are at a “milestone” price point you don’t want to tip over (say $29 vs. $31) - but still, creep up to the edge and go $29.95.
Others? You probably have more wiggle room than you think. That $22 item can go to $24 with no risk.
So play around piece by piece vs a flat increase. That’s what works for me. And fiddle regularly. Not just returns, but your supplies and shipping costs are already up too.
Seller_yovmzQTPG8BxX
Refund rate YTD last year = 4.85%
Refund rate YTD this year = 6.69%
But what bothers me with every passing month it is climbing.
The kicker is I have sold the exact same items since handmade started. I would say photos have improved, description have improved (trying to make it idiot proof) Same items, sales are up, but returns are up too in an unproportionate rate. I need to fiddle with the pricing if this is to continue.
I appreciate everyone’s help, thank you.
PS: I would love to know some of ya’lls return rates. With seeing it this high, maybe I just need to stop selling these few items. IDK, I’m at a loss why its so high right now.
Seller_OlUzIoA9SDEXc
2020 return rate was 3.6%
2021 was 4.24%
so far 2022 is 8.55%. Ouch.
No ASIN has been returned more than once, so no pattern.
February I added $1 across the board for postage increases.
Early this month I adjusted for increases in sterling and gold-filled findings. Unfortunately, that meant editing customizations on ~1000 items — most of which offer multiple choices of earring backs, all of which had to be changed. Two boring wasted weeks of my life editing. 
Since many of my sterling/gold-filled prices bumped noticeably, I’m not increasing anything else for now.
Back to my previous coma-inducing chore of micro-editing 7000 old product photos. 
Seller_cZmOMN723GBxZ
5 years or so ago when I switched to FBA my return rate was 1% or less. I didn’t know where to look but would calculate it myself. It went up some but the real kicker was covid. Jumped to 3%, and this year it’s at 4% in addition to sales being down 40%+
Also more items are being returned used/damaged or with missing stickers/pages. The most recent was they removed 60 stickers from 2 pages and sent that back with the full sheet on top. If it keeps up I’ll be increasing prices to cover losses. Just a 4% return rate costs me over 10% of profit due to amazon fees. Then you add in the lost product and time… I have to sell 3 products to make up for the loss of a return that’s unusable and still 2 products for a return in good condition when they change their mind/didn’t read.
Seller_wGMKl5L4ju1kI
The pendulum has swung too far. The “customer is always right” is bad enough with abusers, now the saying is the “customer can do whatever they want” and those abusers are more ruthless than ever.
Seller_7gZ11UfksxzWl
I need to vent: The last 30 days have been a nightmare regarding FBA returns (for all kinds of reasons and different items). I’ve had my items back in FBA for the last 6 months and until this month the return rate was around 6-8%. Here are the current numbers after a huge increase in returns:
Last 180 days: 13%
Last 90 days: 20%
Last 30 days: 33%
Luckily, at least so far (hope I’m not jinxing it), none of these have an effect on VOC; no negative feedback or product reviews/ratings.
Seller_yovmzQTPG8BxX
The returns have been high on AMAZON-as always but not so high as yours I’m running 7.8% MTD.
Amazes me that on Etsy I maybe get one return a month.
I just add it into the pricing structure. Sure gets old though. No other venue has the returns like Amazon. It gets really old.
How to Figure Return Cost
With the amount of returns that I am currently getting I need to figure out what it is costing me and then add that to my selling price. I think I’m at a point where I can no longer absorb the whims of these Amazon return entitled people.
And yes, I have tweaked and re written and rephotographed until I am blue in the face. These are items I have been selling since day one that used to get very limited returns but are now getting more and more returns for seller faulted BOGUS reasons.
Is there a report that shows costs? I found the return report but it just shows total return amount $ for FBM. Is there one that shows all? FBA and FBM and cost.
How to Figure Return Cost
With the amount of returns that I am currently getting I need to figure out what it is costing me and then add that to my selling price. I think I’m at a point where I can no longer absorb the whims of these Amazon return entitled people.
And yes, I have tweaked and re written and rephotographed until I am blue in the face. These are items I have been selling since day one that used to get very limited returns but are now getting more and more returns for seller faulted BOGUS reasons.
Is there a report that shows costs? I found the return report but it just shows total return amount $ for FBM. Is there one that shows all? FBA and FBM and cost.
How to Figure Return Cost
With the amount of returns that I am currently getting I need to figure out what it is costing me and then add that to my selling price. I think I’m at a point where I can no longer absorb the whims of these Amazon return entitled people.
And yes, I have tweaked and re written and rephotographed until I am blue in the face. These are items I have been selling since day one that used to get very limited returns but are now getting more and more returns for seller faulted BOGUS reasons.
Is there a report that shows costs? I found the return report but it just shows total return amount $ for FBM. Is there one that shows all? FBA and FBM and cost.
30 replies
30 replies
Seller_qAugRk38pcRAY
I’m not sure if there is a report showing total of FBA & FBM returns.
But the out of pocket cost to the seller for each FBA return is basically the original “FBA pick and ship fee” for the order and the “return administration fee” (either $5 or 20% of the referral fee, whichever is less) for the return. If you add that amount to all your FBA items, you should be able to cover all your return cost.
Seller_umpLFrxn8qHYX
Once again I had this discussion with myself the other day. I have constantly refined my listings to avoid returns but compared to other venues Amazon leads by far in returns. Sure my sales on Amazon are much greater than other venues but returns have gotten out of hand. I gave up on figuring it all out and as a result Amazon is now $1.00 more per item than over venues across all 579 of my listings. Just the cost of doing business on Amazon.
Seller_yD2lkLvncPSDC
Go to Business Reports > Seller Performance and set the date to at least 6 months. Find the Refund Rate column and scroll all the way to the bottom to get the total refund rate.
Seller_la6yWqhB9Jzwb
A typical return costs me:
FBM: Return shipping, new packaging, time, fees
FBA: Avg $5 loss between payment and return, then removal/re-send in fees, repackaging x however many units I have of that item (usually 2 or 3)
So let’s say $6 for every return. If you do that math, then pull the reports to gather your return %, you can see how much to add to every item.
Some you won’t touch - loss leaders that attract other sales, or are at a “milestone” price point you don’t want to tip over (say $29 vs. $31) - but still, creep up to the edge and go $29.95.
Others? You probably have more wiggle room than you think. That $22 item can go to $24 with no risk.
So play around piece by piece vs a flat increase. That’s what works for me. And fiddle regularly. Not just returns, but your supplies and shipping costs are already up too.
Seller_yovmzQTPG8BxX
Refund rate YTD last year = 4.85%
Refund rate YTD this year = 6.69%
But what bothers me with every passing month it is climbing.
The kicker is I have sold the exact same items since handmade started. I would say photos have improved, description have improved (trying to make it idiot proof) Same items, sales are up, but returns are up too in an unproportionate rate. I need to fiddle with the pricing if this is to continue.
I appreciate everyone’s help, thank you.
PS: I would love to know some of ya’lls return rates. With seeing it this high, maybe I just need to stop selling these few items. IDK, I’m at a loss why its so high right now.
Seller_OlUzIoA9SDEXc
2020 return rate was 3.6%
2021 was 4.24%
so far 2022 is 8.55%. Ouch.
No ASIN has been returned more than once, so no pattern.
February I added $1 across the board for postage increases.
Early this month I adjusted for increases in sterling and gold-filled findings. Unfortunately, that meant editing customizations on ~1000 items — most of which offer multiple choices of earring backs, all of which had to be changed. Two boring wasted weeks of my life editing.
Since many of my sterling/gold-filled prices bumped noticeably, I’m not increasing anything else for now.
Back to my previous coma-inducing chore of micro-editing 7000 old product photos.
Seller_cZmOMN723GBxZ
5 years or so ago when I switched to FBA my return rate was 1% or less. I didn’t know where to look but would calculate it myself. It went up some but the real kicker was covid. Jumped to 3%, and this year it’s at 4% in addition to sales being down 40%+
Also more items are being returned used/damaged or with missing stickers/pages. The most recent was they removed 60 stickers from 2 pages and sent that back with the full sheet on top. If it keeps up I’ll be increasing prices to cover losses. Just a 4% return rate costs me over 10% of profit due to amazon fees. Then you add in the lost product and time… I have to sell 3 products to make up for the loss of a return that’s unusable and still 2 products for a return in good condition when they change their mind/didn’t read.
Seller_wGMKl5L4ju1kI
The pendulum has swung too far. The “customer is always right” is bad enough with abusers, now the saying is the “customer can do whatever they want” and those abusers are more ruthless than ever.
Seller_7gZ11UfksxzWl
I need to vent: The last 30 days have been a nightmare regarding FBA returns (for all kinds of reasons and different items). I’ve had my items back in FBA for the last 6 months and until this month the return rate was around 6-8%. Here are the current numbers after a huge increase in returns:
Last 180 days: 13%
Last 90 days: 20%
Last 30 days: 33%
Luckily, at least so far (hope I’m not jinxing it), none of these have an effect on VOC; no negative feedback or product reviews/ratings.
Seller_yovmzQTPG8BxX
The returns have been high on AMAZON-as always but not so high as yours I’m running 7.8% MTD.
Amazes me that on Etsy I maybe get one return a month.
I just add it into the pricing structure. Sure gets old though. No other venue has the returns like Amazon. It gets really old.
Seller_qAugRk38pcRAY
I’m not sure if there is a report showing total of FBA & FBM returns.
But the out of pocket cost to the seller for each FBA return is basically the original “FBA pick and ship fee” for the order and the “return administration fee” (either $5 or 20% of the referral fee, whichever is less) for the return. If you add that amount to all your FBA items, you should be able to cover all your return cost.
Seller_qAugRk38pcRAY
I’m not sure if there is a report showing total of FBA & FBM returns.
But the out of pocket cost to the seller for each FBA return is basically the original “FBA pick and ship fee” for the order and the “return administration fee” (either $5 or 20% of the referral fee, whichever is less) for the return. If you add that amount to all your FBA items, you should be able to cover all your return cost.
Seller_umpLFrxn8qHYX
Once again I had this discussion with myself the other day. I have constantly refined my listings to avoid returns but compared to other venues Amazon leads by far in returns. Sure my sales on Amazon are much greater than other venues but returns have gotten out of hand. I gave up on figuring it all out and as a result Amazon is now $1.00 more per item than over venues across all 579 of my listings. Just the cost of doing business on Amazon.
Seller_umpLFrxn8qHYX
Once again I had this discussion with myself the other day. I have constantly refined my listings to avoid returns but compared to other venues Amazon leads by far in returns. Sure my sales on Amazon are much greater than other venues but returns have gotten out of hand. I gave up on figuring it all out and as a result Amazon is now $1.00 more per item than over venues across all 579 of my listings. Just the cost of doing business on Amazon.
Seller_yD2lkLvncPSDC
Go to Business Reports > Seller Performance and set the date to at least 6 months. Find the Refund Rate column and scroll all the way to the bottom to get the total refund rate.
Seller_yD2lkLvncPSDC
Go to Business Reports > Seller Performance and set the date to at least 6 months. Find the Refund Rate column and scroll all the way to the bottom to get the total refund rate.
Seller_la6yWqhB9Jzwb
A typical return costs me:
FBM: Return shipping, new packaging, time, fees
FBA: Avg $5 loss between payment and return, then removal/re-send in fees, repackaging x however many units I have of that item (usually 2 or 3)
So let’s say $6 for every return. If you do that math, then pull the reports to gather your return %, you can see how much to add to every item.
Some you won’t touch - loss leaders that attract other sales, or are at a “milestone” price point you don’t want to tip over (say $29 vs. $31) - but still, creep up to the edge and go $29.95.
Others? You probably have more wiggle room than you think. That $22 item can go to $24 with no risk.
So play around piece by piece vs a flat increase. That’s what works for me. And fiddle regularly. Not just returns, but your supplies and shipping costs are already up too.
Seller_la6yWqhB9Jzwb
A typical return costs me:
FBM: Return shipping, new packaging, time, fees
FBA: Avg $5 loss between payment and return, then removal/re-send in fees, repackaging x however many units I have of that item (usually 2 or 3)
So let’s say $6 for every return. If you do that math, then pull the reports to gather your return %, you can see how much to add to every item.
Some you won’t touch - loss leaders that attract other sales, or are at a “milestone” price point you don’t want to tip over (say $29 vs. $31) - but still, creep up to the edge and go $29.95.
Others? You probably have more wiggle room than you think. That $22 item can go to $24 with no risk.
So play around piece by piece vs a flat increase. That’s what works for me. And fiddle regularly. Not just returns, but your supplies and shipping costs are already up too.
Seller_yovmzQTPG8BxX
Refund rate YTD last year = 4.85%
Refund rate YTD this year = 6.69%
But what bothers me with every passing month it is climbing.
The kicker is I have sold the exact same items since handmade started. I would say photos have improved, description have improved (trying to make it idiot proof) Same items, sales are up, but returns are up too in an unproportionate rate. I need to fiddle with the pricing if this is to continue.
I appreciate everyone’s help, thank you.
PS: I would love to know some of ya’lls return rates. With seeing it this high, maybe I just need to stop selling these few items. IDK, I’m at a loss why its so high right now.
Seller_yovmzQTPG8BxX
Refund rate YTD last year = 4.85%
Refund rate YTD this year = 6.69%
But what bothers me with every passing month it is climbing.
The kicker is I have sold the exact same items since handmade started. I would say photos have improved, description have improved (trying to make it idiot proof) Same items, sales are up, but returns are up too in an unproportionate rate. I need to fiddle with the pricing if this is to continue.
I appreciate everyone’s help, thank you.
PS: I would love to know some of ya’lls return rates. With seeing it this high, maybe I just need to stop selling these few items. IDK, I’m at a loss why its so high right now.
Seller_OlUzIoA9SDEXc
2020 return rate was 3.6%
2021 was 4.24%
so far 2022 is 8.55%. Ouch.
No ASIN has been returned more than once, so no pattern.
February I added $1 across the board for postage increases.
Early this month I adjusted for increases in sterling and gold-filled findings. Unfortunately, that meant editing customizations on ~1000 items — most of which offer multiple choices of earring backs, all of which had to be changed. Two boring wasted weeks of my life editing.
Since many of my sterling/gold-filled prices bumped noticeably, I’m not increasing anything else for now.
Back to my previous coma-inducing chore of micro-editing 7000 old product photos.
Seller_OlUzIoA9SDEXc
2020 return rate was 3.6%
2021 was 4.24%
so far 2022 is 8.55%. Ouch.
No ASIN has been returned more than once, so no pattern.
February I added $1 across the board for postage increases.
Early this month I adjusted for increases in sterling and gold-filled findings. Unfortunately, that meant editing customizations on ~1000 items — most of which offer multiple choices of earring backs, all of which had to be changed. Two boring wasted weeks of my life editing.
Since many of my sterling/gold-filled prices bumped noticeably, I’m not increasing anything else for now.
Back to my previous coma-inducing chore of micro-editing 7000 old product photos.
Seller_cZmOMN723GBxZ
5 years or so ago when I switched to FBA my return rate was 1% or less. I didn’t know where to look but would calculate it myself. It went up some but the real kicker was covid. Jumped to 3%, and this year it’s at 4% in addition to sales being down 40%+
Also more items are being returned used/damaged or with missing stickers/pages. The most recent was they removed 60 stickers from 2 pages and sent that back with the full sheet on top. If it keeps up I’ll be increasing prices to cover losses. Just a 4% return rate costs me over 10% of profit due to amazon fees. Then you add in the lost product and time… I have to sell 3 products to make up for the loss of a return that’s unusable and still 2 products for a return in good condition when they change their mind/didn’t read.
Seller_cZmOMN723GBxZ
5 years or so ago when I switched to FBA my return rate was 1% or less. I didn’t know where to look but would calculate it myself. It went up some but the real kicker was covid. Jumped to 3%, and this year it’s at 4% in addition to sales being down 40%+
Also more items are being returned used/damaged or with missing stickers/pages. The most recent was they removed 60 stickers from 2 pages and sent that back with the full sheet on top. If it keeps up I’ll be increasing prices to cover losses. Just a 4% return rate costs me over 10% of profit due to amazon fees. Then you add in the lost product and time… I have to sell 3 products to make up for the loss of a return that’s unusable and still 2 products for a return in good condition when they change their mind/didn’t read.
Seller_wGMKl5L4ju1kI
The pendulum has swung too far. The “customer is always right” is bad enough with abusers, now the saying is the “customer can do whatever they want” and those abusers are more ruthless than ever.
Seller_wGMKl5L4ju1kI
The pendulum has swung too far. The “customer is always right” is bad enough with abusers, now the saying is the “customer can do whatever they want” and those abusers are more ruthless than ever.
Seller_7gZ11UfksxzWl
I need to vent: The last 30 days have been a nightmare regarding FBA returns (for all kinds of reasons and different items). I’ve had my items back in FBA for the last 6 months and until this month the return rate was around 6-8%. Here are the current numbers after a huge increase in returns:
Last 180 days: 13%
Last 90 days: 20%
Last 30 days: 33%
Luckily, at least so far (hope I’m not jinxing it), none of these have an effect on VOC; no negative feedback or product reviews/ratings.
Seller_7gZ11UfksxzWl
I need to vent: The last 30 days have been a nightmare regarding FBA returns (for all kinds of reasons and different items). I’ve had my items back in FBA for the last 6 months and until this month the return rate was around 6-8%. Here are the current numbers after a huge increase in returns:
Last 180 days: 13%
Last 90 days: 20%
Last 30 days: 33%
Luckily, at least so far (hope I’m not jinxing it), none of these have an effect on VOC; no negative feedback or product reviews/ratings.
Seller_yovmzQTPG8BxX
The returns have been high on AMAZON-as always but not so high as yours I’m running 7.8% MTD.
Amazes me that on Etsy I maybe get one return a month.
I just add it into the pricing structure. Sure gets old though. No other venue has the returns like Amazon. It gets really old.
Seller_yovmzQTPG8BxX
The returns have been high on AMAZON-as always but not so high as yours I’m running 7.8% MTD.
Amazes me that on Etsy I maybe get one return a month.
I just add it into the pricing structure. Sure gets old though. No other venue has the returns like Amazon. It gets really old.
