Amazon Marketplace Return Policy in 2022: The Complete Expert Seller’s Guide
As an experienced Amazon seller, I know firsthand that managing returns can be one of the most frustrating and costly parts of running an Amazon business. When I started out, I made every mistake possible when handling returns. I accepted questionable requests, paid for everything out of pocket, didn’t inspect inventory thoroughly – the list goes on. These rookie mistakes ended up wasting money and inventory.
After learning from those early stumbles, I revamped my entire returns process. Now I confidently handle returns at scale across multiple accounts with minimal losses.
In this comprehensive guide, I’ll share the exact strategies I use to efficiently process returns and refunds. I’ll also examine Amazon’s Marketplace return policies in depth, so you can keep your business profitable and account safe. Let’s dive in!
What Does Amazon‘s Return Policy Actually Say?
Before going further, let‘s recap exactly what Amazon requires from Marketplace sellers regarding returns. This will lay the groundwork for everything that follows.
Amazon‘s return policy allows customers to return any purchase to Amazon or a Marketplace seller for a full refund within 30 days of delivery, for any reason at all.
As a seller, you must accept valid returns that meet these criteria:
- Item is defective, damaged, or materially different from the product description
- Item was fulfilled incorrectly – wrong product shipped
- Return is unopened with original packaging and seals intact
You are not required to accept returns if:
- Item shows signs of use or damage caused by the customer
- Parts, instructions, tags, or accessories are missing
- Customer damaged the item or has buyer’s remorse
Now that we‘ve reviewed the policy basics, let’s look at how to actually put these rules into practice…
Handling Valid vs. Invalid Return Requests
When a return request comes in, you must carefully evaluate if it meets Amazon’s criteria for a valid return.
Approving Valid Returns Quickly
Valid returns per Amazon’s rules need to be accepted and refunded promptly within 2 days to avoid penalties.
Some examples of valid return scenarios:
- A customer receives a bike with missing parts – you shipped the wrong item variation
- A product arrives cracked or broken – damage occurred during shipping
- An electronic device powers on but won’t charge – a defective battery
In these cases, swiftly authorize the return through Seller Central, provide a prepaid shipping label to the customer, and process the refund once you receive the item back.
Denying Invalid Returns
You have the right to refuse returns that don’t meet Amazon’s criteria.
Some examples of invalid returns:
- A customer wore a clothing item and now wants to return it
- A video game is returned without the original case or codes
- A kitchen appliance has a dent from being dropped after delivery
For invalid returns, reach out politely to explain why you cannot accept the request. Offering partial refunds or exchanges can sometimes resolve these cases amicably.
Key Return Request Metrics
When evaluating return requests:
- Aim for a return approval rate of 80% or higher. Too many rejections lead to defects.
- Keep your return refund rate at 98% or higher. This shows you are resolving requests timely.
- Try to reimburse 65% or more from return shipping fees. Amazon may cover unreimbursed costs.
Managing Open Communication with Customers
Communicating promptly and clearly with customers makes a huge difference in providing good return service. Here are some best practices:
Set Expectations Upfront in Listings
Detail your return policy, including who pays shipping, in every product listing. This primes customers to understand the process before purchasing.
Explain Next Steps After Approval
Once approving a return, message the customer to explain timing, provide the shipping label, and set refund expectations.
Follow Up After Return Completion
Check in after issuing the refund to make sure the resolution met the customer‘s needs. This extra touch often leads to positive feedback.
Be Responsive and Friendly
Reply to messages within 24 hours, and never use accusatory language. An empathetic tone makes a frustrating process easier for customers.
Optimizing the Return Logistics in Your Warehouse
To keep returned inventory moving efficiently:
Create a Dedicated Returns Area
Set up a separate quarantine zone for processing returns before they enter your main inventory.
Inspect Thoroughly and Note Any Issues
Look for damage, missing parts, stains, etc. Detailed notes help decide whether to resell, liquidate, or dispose of the item.
Sort Items by Resale Potential
Group returns into categories like New-In-Box, Open Box, and Refurbished based on condition. This streamlines relisting.
Restock Eligible Items Promptly
Get returned items that can be resold online quickly to start recovering your costs. Slow processing ties up working capital.
Track Return Reasons and Look for Trends
Analyze return reasons to identify product flaws and listing errors to improve quality and descriptions.
Getting Reimbursed for Return Expenses
It’s frustrating to lose both the sale and the original shipping costs on a return. Here are tips to recoup some of the expenses:
Charge return shipping costs for invalid returns or exchanges. Amazon may cover shipping otherwise.
Request reimbursement for damage if the customer returned an item broken or altered. Upload documentation through Seller Central.
Write off eligible costs like return shipping and unreimbursed damages as business expenses to save on taxes.
Appeal reimbursement denials if you have evidence supporting your claim. Persistence pays off.
Buy insurance to cover lost, stolen, or damaged returns. Riders run about 1% of insured value.
Avoiding Common Seller Mistakes
After seeing countless sellers struggle with managing returns, I’ve identified the most frequent errors:
Mistake: Offering free return shipping on all purchases
Solution: Only provide prepaid labels for valid returns. Let Amazon cover costs otherwise.
Mistake: Accepting late returns beyond 30 days to avoid issues
Solution: Kindly but firmly decline late requests per policy. Exceptions undermine rules.
Mistake: Not inspecting returned items closely enough before reselling
Solution: Thoroughly test and examine returns to identify damage or missing parts.
Mistake: Having cluttered warehouse workflow and disjointed return processes
Solution: Design efficient workspace and storage with streamlined processing steps.
Mistake: Failing to relist returned inventory quickly
Solution: Speedily resell open box and refurbished items to start recovering costs faster.
Final Thoughts
Returns are inevitable when selling on Amazon, so develop systems to handle them profitably and efficiently. With the right processes in place, returns can actually provide inventory for reselling at a discount. Just stay diligent with inspections to avoid quality issues.
I hope these insider strategies help you take control of returns and refunds in your Amazon business. Don‘t hesitate to reach out with any other questions!