Customer Refunds, Customer Returns, and Seller Reimbursements
The Stages Of A Refund Cyle
When a customer is not satisfied with his purchase, the following will happen
Amazon will refund the customer
The customer will be required to return the unsatisfactory item to an Amazon Fulfilment Centre
Once the unsatisfactory item is received at the FC, Amazon will determine whether the item returned is in a sellable condition
If it is in a sellable condition, Amazon will return the item to your inventory as fulfillable and you are not entitled to any compensation
If it is not in a sellable condition, Amazon will decide whether they will take responsibility for the damage
If Amazon do not take responsibility, the item is returned to your inventory as unfulfillable and you are not entitled to any compensation
If Amazon do take responsibility, the item is disposed of by Amazon and you are entitled to a reimbursement
Summary Of The Cycle Milestones
The Customer obtains a refund from Amazon
The Customer returns the unsatisfactory item
The item is returned to your inventory (either in a fulfillable or an unfulfillable condition) and no compensation is due, OR
The item is disposed of and you are due a reimbursement
What Are My Reimbursement Options
When your inventory is either lost or damaged when it is under Amazon’s control (damaged by an Amazon partnered carrier, in the fulfillment center, or during delivery to a customer), Amazon will either:
Replace the item(s) with one with the same FNSKU, or
Pay you the evaluated replacement value of your lost inventory, less any applicable FBA and Selling on Amazon fee
As a seller, you have no say as to which option is chosen to reimburse you, it is purely at Amazon’s discretion
How Is A Refund Condition Settled?
A refund is settled (i.e. considered reimbursed) by either:
Returning the returned item to your inventory, in a sellable or unfulfillable condition, OR
Reimbursing you by returning a fulfillable, identical item as the returned item.
Amazon are able to do this even when your items are private label! Read on later …
Reimbursing you by compensating you in cash
When Reimbursement Is Due, How Soon Can I expect To Receive It?
A customer is required to return an unsatisfactory item within 30 days after he has requested a refund
Upon receipt of the item, Amazon will require another 15 days to process the reimbursement
Therefore, there is no point in looking for reimbursements any time before 45 days has passed since the customer refund date
Are there Statutes Of Limitation For Reimbursements?
Yes! You cannot claim reimbursements for refunds which happened over 18 months ago
How Can Amazon Reimburse Me In Kind When My Product is PL?
Imagine the following situation:
Amazon lose some of your inventory during inbound or transfer processing
After a while, they reimburse you in cash for the loss
Later, they find the lost inventory
Amazon could put the found items back in your inventory and claw back the reimbursement they paid you, OR
They could keep the found items separately and keep these units for the purposes of reimbursing you in kind instead of in cash in the future
How Much Will Amazon Reimburse Me?
If they reimburse you in kind, it is a simple equation
The unit returned to your inventory accounts for full compensation, but you still need to sell the unit again
If they reimburse you in cash
They will apply all sorts of rules to come to a ‘fair’ compensation cash amount (replacement value)
