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.

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