Turn your Amazon sourcing strategy from hit-or-miss into high-ROI with the 4 tools every Seller 365 user should master.
Jun 20
Returns are part of the game. This guide helps you handle them smarter, whether you fulfill yourself or trust Amazon to do it.
Amazon’s return policies heavily impact your bottom line and daily operations. This guide covers everything you need to know about Amazon returns in 2025, whether you’re an FBA seller or someone handling your own fulfillment.
When you use FBA, Amazon manages the entire returns process on your behalf. Your customers deal directly with Amazon’s return system rather than with you. Amazon makes decisions about refunds, replacements, and inventory disposition without requiring your input.
Most items qualify for return within 30 days of delivery. Baby items in new, unopened condition get an extended 90-day return window. Holiday purchases made during November and December can be returned until the end of January.
Amazon occasionally accepts returns beyond these standard timeframes. They prioritize customer satisfaction, which sometimes means bending their own rules. This flexibility protects your seller metrics but can impact your inventory and bottom line.
Amazon issues refunds directly to customers and debits your seller account accordingly. They inspect each returned item to determine if it’s in sellable condition. Items deemed sellable go back into your active inventory, while unsellable items get flagged to be disposed of or liquidated into return pallets.
The inspection process isn’t perfect. Amazon processes thousands of returns daily and sometimes makes errors in classification. This reality makes monitoring your return reports essential for catching potential issues.
Amazon marks items as unsellable when they don’t match their original listed condition. Items that are defective, damaged, opened, or missing required labeling get flagged. Products that might pose health or safety risks, like consumables or personal care items, often get classified as unsellable.
Digital products with internal memory showing evidence of use become unsellable. Amazon errs on the side of caution to protect future customers. This sometimes means perfectly good items get marked as unsellable.
You’ll receive credit for referral fees and variable closing fees on returned items. FBA fees, however, aren’t reimbursed regardless of why the item was returned. Amazon sometimes charges customers restocking fees for opened items, which they credit to your account.
Returns in the Apparel and Shoes categories incur processing fees. These fees apply even when the return isn’t your fault. The complex fee structure means you should regularly audit your return-related charges.
Some customers request replacements instead of refunds for their purchases. Amazon ships a new item from your inventory at no cost to the customer when this happens. You won’t receive additional payment or fees for replacement orders.
The customer must return the original item to complete the replacement process. Amazon only offers replacements when you have identical items in your inventory. The entire replacement system operates separately from the normal sales process.
Self-fulfillment gives you more control over returns but requires more hands-on management. You’ll need to develop systems for handling return requests, processing refunds, and managing returned inventory. Amazon still sets the overall return policy that you must follow.
Amazon’s standard policy allows returns within 30 days of estimated delivery. Return windows vary for some product categories. Amazon automatically authorizes US return requests that fall within policy guidelines.
You must respond to manual authorization requests within 24 hours. Failing to respond promptly can result in Amazon automatically approving the return and potentially issuing refunds without your input. Staying on top of these requests prevents problems down the line.
US sellers get automatically enrolled in Amazon’s prepaid returns program. This system provides buyers with prepaid shipping labels through Amazon’s Buy Shipping services. The cost of these labels gets charged to your account based on who’s responsible for the return reason.
You can request exemptions for certain SKUs if they qualify. For exempt items, you must provide your own return labels. Including tracking on these labels helps prevent disputes about whether items were actually returned.
The “Manage Returns” dashboard centralizes all your return-related activities. This interface shows the status of pending returns and highlights actions you need to take. You can authorize returns, issue refunds, and communicate with buyers all from this one screen.
The dashboard lets you download detailed reports about your returns and refunds. These reports help identify patterns in returns that might indicate product issues. Regular monitoring helps catch problems before they affect your seller metrics.
Wrong item returns happen more often than you might expect. Contact the buyer immediately to clarify the situation when this occurs. Ask if they want the incorrect item returned to them or if they prefer to try again with the correct return.
Out-of-policy return requests require your direct approval. You can accept or deny these requests based on your business policies. Remember that denying returns might lead to A-to-Z Guarantee claims from dissatisfied buyers.
Amazon sometimes issues refunds on your behalf that you might disagree with. You can appeal the A-to-z Guarantee claim refunds if you believe they were unjustified. SAFE-T reimbursement claims help recover funds from automatic refunds in certain situations.
Chargeback claims from buyer credit card disputes can be appealed with proper documentation. Lost or damaged in transit claims help recover costs when carriers damage returns during shipping. These appeal processes require thorough documentation and prompt action.
👉 Learn more about Amazon reimbursements here.
When buyers claim they received damaged items, request photos of the damage before processing refunds. This documentation helps determine if the damage occurred during shipping or resulted from product defects. Issue refunds or replacements based on your assessment of the situation.
Buyers sometimes return used or damaged items that differ from their original condition. You can charge appropriate restocking fees in these cases. Document the condition thoroughly with photos and consider filing for reimbursement if eligible.
Refunds sometimes get issued, but items never get returned. File SAFE-T claims for refund-at-first-scan orders when tracking shows no delivery to Amazon. For replacements, Amazon should automatically refund you if the original item isn’t returned within 30 days.
Amazon prioritizes customer satisfaction in its returns policies, sometimes at the sellers’ expense. Understanding these policies helps you navigate returns efficiently and minimize their impact. The system works best when you build returns management into your regular business processes.
Fortunately, managing Amazon returns effectively becomes much easier with the right tools in your seller toolkit.
Seller 365 offers a comprehensive suite of Amazon seller apps that streamline your operations, from inventory management to returns tracking. The all-in-one platform helps you stay on top of everything else while focusing on growing your business.
Try Seller 365 free for up to 14 days and see how much simpler managing your Amazon business can be.