Amazon updates return processing fees for sellers

Amazon has announced changes to its return processing fees, which will affect sellers with high return rates on the platform.

Updated return processing fees on Amazon

The updated return processing fee for high-return-rate products (excluding clothing and shoes) will take effect on June 1, 2024.

These changes were announced as part of the 2024 U.S. fee updates and will be applied quarterly. For example, returns for items shipped in June will be charged in September.

To help sellers better understand return rates and take action to reduce potential fees, Amazon has introduced enhancements to the Return Insights dashboard, available on the FBA Returns page. This includes:

• The number of returned units and the return rate used to calculate the fee
• Minimum return rate thresholds that trigger the fee
• The number of returned units exceeding the threshold that are subject to the fee

To access the Return Insights dashboard, go to the FBA Returns page.

Return thresholds and fee calculation

The updated return processing fee considers returns within three months of shipment. For example, items shipped in June will have returns tracked across June, July, and August. Fees are only charged if the return rate exceeds the category-specific threshold published on the Returns processing fee page. If the threshold is exceeded, the fee applies to each returned unit above that threshold.

For products with fewer than 25 units shipped per month, the updated fee does not apply. Additionally, for products enrolled in the New Selection program, Amazon waives the fee for the first 20 units exceeding the threshold.

Conclusion

The updated return processing fee serves as a reminder for sellers to minimize product returns. Proactive and careful return management is essential to avoid these fees, reduce costs, and improve overall profitability on Amazon.