Returns Get Costlier for some Amazon Sellers with this Policy Change

Amazon is sending out an email to sellers about changes in the return policy. The change only affects sellers who ship items themselves. For those who use FBA nothing is changing.

Dear Seller,

Amazon is simplifying the returns process on items fulfilled by sellers. Starting October 2, 2017, returns of items that you fulfill and that fall within the Amazon returns policy will be automatically authorized. Customers will be able to print a prepaid return shipping label via the Online Return Center instantly.

We are also introducing ‘returnless refunds,’ a feature that is highly requested by sellers. If you so choose, you will now be able to set rules and automatically issue a refund without requiring an item to be shipped back to you. Sellers have requested this because, in many cases, it allows you to save on both return shipping and processing costs.

We hope these changes will reduce the effort required to manage your returns and decrease your customer Return Dissatisfaction Rate (RDR), thereby improving your ratings. Additionally, you will have full visibility into the end-to-end return process through shipment tracking information located on the Manage Returns page in Seller Central.

Two key changes are taking place:

  • Amazon will automatically authorize a return shipping label without requiring the buyer to contact the seller directly first
  • Sellers can opt in for ‘returnless refunds’ to save on the return shipping costs for items that it doesn’t make sense (e.g. a $5 item or one that’s difficult to resell a second time)

The second change is optional; I don’t really understand why people are bickering about it (maybe I’m missing something).

The first one could be a huge negative since in many cases Amazon does not charge the buyer for return shipping, for example, if the buyer claims the item does not work. Previously, the buyer would have to contact the seller and the seller might be able to trouble-shoot via email or over the phone to explain why the product really does work. Going forward, however, the buyer will instantly print out a shipping label, and the seller will probably end up eating the costs.

Hopefully some Amazon seller gurus will chime on with their thoughts on this and how much they think it’ll really impact their bottom line.

Read more on CNBC.

View Comments (25)

  • Fuck that. I am a light Amazon seller and even I got my share of idiot customers. One customer wanted to return headphones they bought from me 11 months ago...

    Also, AWD items are hit or miss all the time. I have more consistenly received quality products from third party sellers

    • Yup you always get your jerk offs trying to cheat the system.
      Ebay and Amazon allow them to get away with it.
      The buyer is always right my ass.

  • We sell items that no matter how clear we make it in the listing, buyers still order incorrectly. Its a risk of these type of items and that isn't the real issue. As we're able to have the buyer verify info and thus prove (in a very nice way) that they ordered wrong, we can help them get the right thing and they seem less likely to leave negative feedback. I'm sure we'll have a majority of items set as exempt.

    • True, for all the negative comments about 3rd party sellers, there are some buyers too quick on the trigger who order the wrong thing. The worst ones blame the seller for sending the "wrong" item. Hello feedback "1" rating.

      • this is why i cant wait for amazon to pull some good shit at wholefoods. i am hoping they will offer TRULY FREE returns. that way, shopping errors can be corrected easily. no lies about broken product or wrong item or not as described. free returns just like any store like target or Walmart.

  • All my problems on amazon have been with third party sellers. Amazon has changed from this pristine beauty with high standards that made you happy because she chose you to this hooker carrying stds from third party sellers.

    Yuck

    • A lot of the stuff you purchased may be from third party sellers who use FBA. Not sure if you are aware of it. Amazon definitely sells a lot of things but not everything is from them. The return standard of third party seller with FBA is on par with sold & FBA. A lot of this type of third party sellers have really good stuff. I guess you actually mean third party seller who choose fulfill by merchant(FBM)?

  • Amazon's free return shipping is their Achille's heel (and probably their largest selling point). In my opinion, that's why their revenue was way less than anticipated, and I think unless they figure out a way to cheapen things for themselves (which it seems they're trying to do) while keeping it palatable for the customers, that'll be the thing that drags them down from super-star stock market status. Revenue's just not going to cut it.

      • Actually the only time you pay for return shipping is if you made a mistake, or found a better price elsewhere, anything that's your fault or your choice. Product damage always free shipping back. Clothes are the exception. Usually free returns, if sold by Amazon LLC and specified on the product page. You are free to try different sizes, that way. They will resell clothing that was returned as long as it looks new, just like retail stores.

        • Actually anybody can select that the item didnt work in order to cheat the system and not pay for shipping, it has happened to me

          • True, Amazon doesn't police all that on the buyers send. As a seller, it's bad though. Even though I don't pay for returns from a buyer. (Amazon does that since I'm FBA), if a seller made a mistake in ordering something and doesn't want to pay for return shipping, they may lie, say something like the product is defective or broken. This becomes Amazon's official reason for the return and it's tagged to the seller. Amazon will go after the sellers if you get too many of those on a product and will suspend certain listings.

    • Amazon is tough on those who have bit too many returns record. For me I always never ever return anything because I am a smart shopper and I know they lose money and on returns and it is bad for me and everyone . I hate having to pack it back and wait or go to ups or Usps location.

      • Re: your first sentence, I'd like to see an objective source with data. Anecdotal evidence doesn't mean much here.

  • I think amazon should just stop and end the third party sellers. Most of what they sell are all counterfeits, fake and not authentic, low qualities be it anything like a shoe, bags, clothes, watches even little things like cell phone charging cables

    • You don't sell on Amazon so clearly you don't know anything. You are just giving a blanket statement based on what? 5 maybe 1% of sellers? Plenty of legit 3p sellers on Amazon. You clearly need to do some more reading or observing.

      • Hey I buy from Amazon almost daily and I get at least 2 deliveries a week for me and my family from Amazon and been prime member for the last 4 years. Most of third party seller items are counterfeit, low quality and fake products . Be it a micro USB charging cable or any clothes or a bag or anything. Amazon knows this too and has taken action and they continue to remove many third party sellers and they will as they still have too many fake item and low quality item sellers. I have some begging me to remove my honest review of their crap or fake product by giving me full refund. While I don't always give them negative seller feed back I do give honest review of the product and when they beg me to remove their product review, I tell them improve your product quality or don't sell fake or crap product

        • Items from third party seller may be cheap, but are not necessarily bad. Just need to take caution to identify the good ones. Recommend you a website called Fakespot. It has been helpful for me to screen out low-quality, fake reviewed item in the last 1-2 years. Some items from third party seller with A rating at Fakespot tend to be really good stuff. Low price doesn't necessarily mean low quality, especially a lot of items are simply overpriced. Ex: you don't really need an expensive OEM ink cartridge, you can get inexpensive ink cartridge from China which works just fine for a small proportion of the cost of an OEM.

        • Jim, I'm curious: why is it that there are more FBM counterfeits than FBA? Is it harder to FBA the same counterfeit item?

          • well I mean FBA costs more. Why would FBM fraudsters want to pay more for FBA and also run the risk of someone looking at their shit? no way.

            also, its not just about AMZ inspection, when you buy FBA and you can inspect it yourself and if u have issues, AMAZON WILL PULL OUT THE RED CARPET FOR THEIR BUYERS. they are seriously some of the best CSR i have experienced from the Philippines. no CC banking BS CSR shit. these guys are the authority to make you happy on the spot. i always buy FBA with confidence. literally dont even bother looking at the reviews sometimes. return that shit so easily using their lockers. fukn no joke dude. the lockers are sick.

          • FBA items MUST get sent to Amazon. The warehouse staff is supposed to do an inspection upon receipt but things can slip through. That being said if you intentionally are selling counterfeit items, you'd rather be FBM because Amazon can never pull your inventory for inspection.

        • Yes, there is fraud, mainly because a lot of buyers aren't careful when they buy and the fraudulent sellers know this. My two cents as a longtime Amazon seller and large buyer of items on Amazon from all kinds of sellers.

          1. Don't buy from a "just launched" seller or even sellers with a few feedbacks only. Go for 95% feedback rating + if possible and 100's+ in feedbacks.

          2. If the price is way too good to be true...

          3. Buy from Prime sellers, same identical guarantees as buying from Amazon LLC.

          4. Do not buy from sellers outside the USA. Some are fine, but again these are not Prime and you may be waiting a month or more for your orders, if they arrive and if you remember. Good luck returning any of those.

          5. Report sellers to Amazon if you've been screwed over and file A-Z claims. If it's counterfeit Amazon will go after those sellers with suspensions. Leaving negative feedback or a negative product review won’t hit them hard enough. Report them.

      • I'm an FBA (fulfilled by Amazon) seller, meaning I buy items, send them into an Amazon warehouse and Amazon then ships (for a fee of course). My customers get Prime shipping and easy returns. Those 2 new return/refund points are for FBM (fulfilled by merchant) sellers. FBA sellers must already adhere to those rules. I like the rule because I buy a lot of things from 3rd party sellers who do their own shipping and trying to get them to issue a legitimate refund can be like pulling teeth.

        I was FBM for 8 years, had a 100% seller feedback and that was because my return policy was generous, like Amazon's and I sold authentic products in the condition stated.

        I've been FBA for 1.5 years now and despite Amazon's additional FBA fees for storage and shipping, the increase in buyers because of Prime and because they are confident of Amazon's return policy has quadrupled my profits due to the additional business. What customer will buy FBM over an FBA seller if the price is similar?

        I know FBM sellers are going to hate this new auto return policy. They also can't offer Prime (with few exceptions) which is one big catalyst for significant growth in sales. Either sellers can look into FBA which is what I did when I got tired of shipping individual orders or they can get resentful of Amazon and end their business relationship.

        • smart move man. I NEVER buy from FBM. too many issues. aside from your DP, as a buyer, I always go FBA, doesnt have to be S&S Amazon, but FBA itself is insurance and I will pay more, in fact I have. maybe like $5 to $20+ more. i dont trust the prices/quality of FBM.

          ALSO.. check this out. the data in demographics is crazy proof. people who have prime.

          Data from Piper Jaffray indicates that more than 70% of upper-income American households earning more than $112K annually are now Amazon Prime members. you cant beat that type of customer willing to spend money. gold mine for sellers on FBA.