Returns are a reality that every seller faces, regardless of experience or sales volume. On average, around 30% of products purchased online are returned to the sellers. On Amazon, with its customer-friendly return policy, this figure can reach up to 40% in certain product categories. With such high return rates, the lack of a well-thought-out Amazon return management strategy can seriously undermine the financial stability of your business.
In this article, we’ll take a detailed look at how the Amazon returns process works and share practical tips on how to optimize it.
- 1. Common Reasons for Returns on Amazon
- 2. Amazon Return Policy for Sellers
- 3. How Does the Amazon Returns Process Work?
- 4. Challenges FBM Sellers Face in Amazon Return Management
- 5. What Challenges Do FBA Sellers Face When Processing Returns?
- 6. How Returns Can Impact Your Business?
- 7. Top 10 Best Practices for Managing Amazon Returns
- 8. Frequently Asked Questions
Before optimizing the Amazon returns process, it’s essential to understand the root causes behind them. On the marketplace, buyers most commonly return products for the following reasons:
- Mismatch between the product and its description. When a buyer receives a product that significantly differs from what was presented in the listing—whether in size, color, material, or functionality—disappointment inevitably leads to a return. Discrepancies between customer expectations and reality can also result in negative reviews, which further damage the seller’s reputation.
- Quality issues and defects. This includes both manufacturing defects and damage sustained during transportation. Even if the problem affects only a small portion of the batch, such cases demand special attention, as they can significantly impact your reputation.
- Shipping errors, including sending the wrong item or incorrect order fulfillment. As your Amazon business scales and order volume increases, the likelihood of such mistakes rises—especially when order processing is done manually.
- “Try-before-you-buy” behavior — a common pattern where customers intentionally order multiple versions of a product (especially in clothing and footwear categories) to choose the one that fits best and return the rest. Amazon’s lenient return policy further encourages this type of behavior.
- Changed mind / Didn’t fit. Customers may return items simply because they didn’t like them or they didn’t fit their needs. Amazon allows returns within a set period without requiring any explanation, making such returns common.
- Return fraud is an increasing problem. Some buyers return counterfeit versions of products, used items, or claim defects that don’t actually exist. For return fraud prevention on Amazon, ensure accurate product descriptions, use trackable shipping methods, document all transactions, and thoroughly inspect returned items.
- Difficulty of use often leads to returns of technically complex products. If a customer struggles to understand how to use a device due to unclear instructions or a non-intuitive interface, the likelihood of a return increases significantly.
For most products, Amazon sets a standard return window of 30 days from the date of delivery. During this period, customers can initiate a return without providing a reason. The system automatically approves the majority of these requests. Sellers are required to accept returns regardless of their own preferences, as this is a basic platform policy.
Amazon regularly implements extended return windows, especially during high-demand periods and holiday sales. In such cases, the marketplace may extend the return period to 60–90 days, and in some cases, up to 365 days.
It’s also important to note that returns cannot be initiated for certain product categories. These include the following items:
- Products with a limited shelf life;
- Items related to safety and health;
- Products subject to special transportation regulations;
- Custom-made or made-to-order goods;
- Medications and pharmaceutical products;
- Digital content;
- Vehicles.
For sellers, it is crucial to clearly state all return restrictions in the product description in accordance with the marketplace policy. This helps minimize potential disputes and negative reviews from customers whose expectations were not met.
Amazon’s return policy for sellers applies equally to both FBA and those who fulfill orders themselves (FBM). Despite the unified standards, the returns process and the level of seller involvement differ significantly between these models. Let’s take a closer look at how returns are handled in practice for FBA vs FBM.
3.1 Returns process for FBM sellers
If you fulfill orders yourself, you are also responsible for managing returns. Here’s how the process works:
- The buyer initiates the return through their Amazon account, selects one of the system’s provided return reasons, and chooses their preferred refund method.
- In most cases, the return request is automatically approved without prior seller review. However, if the return doesn’t comply with Amazon’s standard return policy or involves items from non-returnable categories, the request is forwarded directly to the seller for a decision. Upon receiving such a request, you will have several options:
✔ Approve the request in full, allowing the customer to return the purchased item according to the standard procedure.
✔ Offer a compromise solution, such as a partial refund or a special concession that lets the customer keep the product.
✔ Reasonably deny the return, providing the customer with a detailed explanation for rejecting the request.
- The seller must provide the buyer with return instructions, including a return address and, if necessary, a prepaid shipping label for the return. You can also offer the customer a full refund without requiring the item to be sent back. This is appropriate, for example, when the cost of reverse logistics for Amazon sellers exceeds the product’s value, or if the item is damaged and cannot be resold.
- After inspecting the returned item, the FBM seller initiates a refund through Amazon’s system. Depending on the condition of the product, the refund may be full or partial.
- The refund must be issued within 2 business days after receiving the returned item; otherwise, Amazon may automatically deduct the amount from your balance.
- After completing the process, the FBM seller independently decides the fate of the returned item:
✔ Returns it to active inventory (if the item is unopened)
✔ Resells it as “open-box” or “refurbished” (with an appropriate discount)
✔ Repairs or refurbishes it (for items with fixable defects)
✔ Disposes of it (if repair is impossible or not cost-effective)
3.2 Amazon FBA return process
If you use Amazon’s fulfillment service (FBA), the entire returns process—from receiving the returned item to refunding the customer—is handled by the platform itself. Here’s how it works:
- The buyer initiates the return through their Amazon account, specifying the reason and choosing one of the available return options. This may include a prepaid shipping label or a return without packaging and labeling at Amazon Fresh, Amazon Go, Whole Foods, Kohl’s, and other partner locations.
- After the item is returned to Amazon FBA, staff receive and register it. An inspection of the product’s condition is carried out according to the marketplace’s internal standards.
- After the inspection, Amazon:
✔ Classifies the item by condition category and either returns it to inventory for resale or disposes of it.
✔ Automatically initiates a refund to the buyer according to the return policy.
✔ Deducts the corresponding amount from the seller’s account balance on the platform.
- In some cases, the marketplace may reimburse the seller if the return was caused by an Amazon error (such as warehouse damage or shipping the wrong item).
- The seller is provided with a returns report. This information appears in the “FBA Customer Returns” section in Seller Central, where you can track the item’s status, Amazon’s decision, and any potential charges.
In the FBM model, the seller is fully responsible for the entire returns process—from providing return instructions to issuing refunds. While this offers greater flexibility compared to FBA, it also means facing a higher number of potential challenges. Here are the most common difficulties sellers encounter:
4.1 Strict flexibility of Amazon’s return policy for sellers
Although FBM sellers have the right to set their own return conditions, Amazon requires that these conditions meet or exceed the marketplace’s service standards. This means:
- The obligation to approve returns for nearly any request, including cases where the seller is not at fault.
- The seller must approve almost all return requests, even in situations where the seller is not at fault.
- The risk of receiving A-to-Z claims and negative reviews if the seller denies or restricts returns.
This kind of “flexibility,” which favors the buyer’s interests, often limits the seller’s ability to protect their own interests.
4.2 Additional resources required for handling returns
Unlike FBA, where the company handles most of the operations, FBM sellers have to manage every step themselves — from communicating with the customer to processing the returned product. This creates extra workload for staff and requires significant resource allocation.
4.3 Increased logistics costs
Logistical challenges are especially noticeable when handling returns from remote regions. The cost of Amazon reverse logistics for sellers can exceed the value of the product itself. This puts the seller in a difficult position — either absorb the transportation losses or offer the customer a full refund while allowing them to keep the item.
In the case of FBA, the marketplace takes on storage, shipping, and return processing. However, this does not mean that returns cease to be a problem. FBA sellers still face challenges that can directly affect their profits and the quality of customer service.
5.1 Limited control over decision-making
FBA sellers have almost no ability to influence Amazon’s decisions regarding returns. The platform automatically approves the majority of return requests, even if the seller believes they are unjustified. This creates conditions that can lead to potential abuse by some buyers.
5.2 Impact on account metrics
High return rates, especially due to “item not as described,” can negatively impact:
- Order Defect Rate (ODR) — a key quality metric;
- Your rankings in Amazon’s search results;
- Amazon’s trust in your brand.
Additionally, if a particular product experiences frequent returns, Amazon may restrict its sale or even require the removal of remaining inventory from the warehouse.
5.3 Hidden costs on Amazon’s side
Even if the item is returned to the warehouse, it doesn’t mean you won’t incur costs:
- Fulfillment fees are non-refundable;
- Returned items deemed unsellable are automatically written off, and their disposal costs are borne by the seller.
All of this creates a hidden expense category that directly impacts profitability.
Returns are more than just temporary inconveniences. They can significantly affect various aspects of your business, from finances and logistics to reputation and visibility on Amazon.
- Direct financial losses are the most obvious consequence of returns. These include not only reimbursing the cost of the product to the customer but also expenses related to reverse logistics, inspection, repackaging, and, in some cases, disposal.
- Negative impact on seller ratings. Customers who initiate returns often leave negative reviews, which lowers the overall rating of both the product and the seller.
- Deterioration of account metrics. Amazon uses sophisticated seller evaluation algorithms where the number of returns is a key metric. Exceeding the average return rate for a category can lead to reduced product visibility in search results, loss of eligibility for special programs (such as Amazon Prime), and even temporary account suspension.
- Increased operational burden is an inevitable consequence of a growing number of returns. Handling returns requires additional human resources, warehouse space, and administrative costs.
- Complicating inventory forecasting. It is difficult to predict what portion of sold products will be returned and in what condition. This complicates procurement planning and can lead to both excess stock and shortages.
Completely eliminating returns is impossible, especially on a platform with a customer-centric policy. However, with a well-thought-out strategy, returns stop being a loss-making routine and start working to build trust in your brand. Below are key strategies to optimize the Amazon returns process.
7.1 Reduce the number of returns
Focus on preventing returns rather than merely optimizing how you handle them. Invest in improving product descriptions, add detailed photos, accurate sizing charts, and comprehensive technical specifications. A well-planned strategy can significantly reduce the number of returns and the costs associated with them.
7.2 Automate the returns handling process
Use Amazon tools and third-party services to manage returns. Set up automated responses for common inquiries, templates for communicating with customers, and systems to track return statuses. This will reduce processing time and ease the workload on your team.
7.3 Analyze return data
Regularly review return statistics and reasons. Identify patterns—such as which products are returned more often, the most common return reasons, and seasonal trends. Use this information to improve product descriptions, enhance product quality, or reconsider your assortment.
7.4 Use return insights to improve your business
Treat every return as valuable feedback. If customers frequently complain about a specific aspect of a product, invest in improving it. If the reason lies in an inaccurate description, optimize your listing content. Turn negative experiences into a catalyst for positive change.
7.5 Ensure fast processing and refunds
The speed of processing returns directly impacts customer satisfaction. Aim to handle returns and issue refunds as quickly as possible — this increases the likelihood that the customer will return for future purchases despite the initial negative experience.
7.6 Maintain professional communication
Even if a customer returns a product for a reason that seems unjustified to you, always maintain professionalism in your communication. Be polite, responsive, and solution-oriented. Remember that a positive interaction during the return process can lay the foundation for future sales.
Invest in training your customer support team. Employees should be able to identify situations where alternatives to returns can be offered (partial refund, replacement, additional discount) and communicate effectively with customers to minimize negative experiences.
7.7 Optimize your returns processing settings
Set up automated return processing rules for different product categories. For low-cost items, it may be more cost-effective to let the customer keep the product and simply issue a refund rather than paying for return shipping. For high-value items, establish a detailed inspection process after the return to determine whether the product can be resold or requires repair.
7.8 Conduct a cost-benefit analysis for each product category
Regularly analyze the cost of processing returns across different product categories. Consider not only shipping expenses but also costs related to inspection, repackaging, possible repairs, or write-offs. This analysis will help you make informed decisions about the feasibility of Amazon reverse logistics for specific products.
7.9 Offer customers alternative return options
Not all returns require sending the product back—especially when it comes to low-cost items or minor defects. In cases where the cost of return logistics exceeds the value of the product, you can allow the customer to keep the item while still receiving a full or partial refund. If the product has a minor defect, consider offering a discount instead of a return. This approach reduces costs and increases the chance of retaining the customer. A flexible return policy not only helps cut operational expenses but also strengthens customer trust.
7.10 Outsource Amazon return management
Consider using third-party solutions for Amazon reverse logistics, especially if you sell across multiple platforms. By centralizing all returns in a single logistics center, you can speed up processing and reduce costs. An experienced 3PL provider can efficiently perform professional inspection, sorting, and further handling of returned products.
Thanks to economies of scale and specialization, these companies manage returns more effectively and at lower costs than what you could achieve on your own. This is particularly important when dealing with high sales volumes.
The 3PL company Fulfillment-Box offers a comprehensive solution for Amazon returns:
- Our local warehouses in Europe and the USA can be used as return addresses, reducing the time and cost of Amazon reverse logistics for sellers.
- All returned items undergo a visual inspection, completeness check, and classification to determine whether the product is suitable for resale, discounting, or disposal.
- Products suitable for resale are repackaged and returned to the warehouse or shipped directly to Amazon FBA.
- Every step is documented in our system — you will receive photo reports, status updates, and recommendations for the next actions to take with the product.
- Customized return handling scenarios can be arranged — from automatic write-offs to reshipping the product back to the customer.
Use returns not as a cause for concern, but as an opportunity to improve your processes, strengthen your reputation, and increase your market share.
1. What happens when a product is returned on Amazon?
In the case of FBA, returned products go back to an Amazon warehouse where they undergo inspection. Depending on their condition, the items may be:
✔ returned to inventory for resale,
✔ discounted and sold through Amazon Warehouse,
✔ written off or disposed of.
FBM sellers handle the fate of their returned products themselves.
2. How does Amazon track returns?
When a return is initiated, the product is usually assigned a unique Return Merchandise Authorization (RMA) number. This number helps track the Amazon returns process for both the buyer and the seller or logistics provider.
3. How long does return processing take?
A return can be processed within 7–14 days from the moment it is initiated. For FBA, the return process may take 3–5 business days after the item is received at the warehouse.
4. How to check the return rate on Amazon?
In Seller Central, you can go to the “Performance” section under the “Reports” tab, where the overall return percentage is displayed.
5. How to reduce the return rate on Amazon?
You can reduce returns by providing accurate and honest product descriptions, high-quality photos, proactive customer support, and using reviews to improve the product. Regular analysis of return reasons and prompt process adjustments also help.
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