When you start selling on Amazon, you have to be careful about all the rules, terms, and conditions that apply to your account. Being a seller on an online store is not less complex and difficult than owning a physical store. Things are not as simple as taking orders and delivering the goods. On many occasions, you get the products returned to you by your customers. That’s when you have to issue the refund if the customer has returned your product according to your set conditions. You have to follow the right steps on Amazon to refund to your customers.
Understanding the Policies Related to Refunds and Returns
You have to be very careful with refunds and returns because they can take a toll on your monthly revenue and profit if you mismanage them. It is important to know here is that you can process refunds, returns, and cancelations. When you sell through Amazon, you have to abide by certain rules that have been set by the online retail giant. Your customers can cancel the order and get a refund but they have to follow a certain process. Cancelation needs to be done by the customer using the option available on Amazon’s website.
It is imperative to understand that a customer has the right to contact you or Amazon for a refund. The method is quite similar for both but you have to understand the subtleties. When a customer contacts Amazon, the retail giant does not wait for your approval. It makes the refund straight away to the customer and then completes the process with you. Of course, when Amazon returns the money to the customer, you are the one who is going to return the money to Amazon. At times when the customer gets in touch with you directly, you still have to escalate the issue to Amazon.
Irrespective of who customer contacts for a refund, Amazon takes the deductions from the commission that it transfers to your seller account at the end of the month.
Getting Refunds from Amazon
Now, when you process an order, you have to pay an order processing fee to Amazon. This fee has to be returned to you by Amazon. When it comes to order fees, Amazon decides the amount it will return to you based on the type of the product you sold to the customer. There is a category of products called BMVDs (Books, Music, Video, and DVD). In the case of these products, the entire order processing fee charged to you at the time of order placement is returned to you. On the other hand, for any products other than BMVDs, Amazon will return 80% of the order processing fee to you while keeping the remaining 20%.
It is imperative for you to understand the process refunding and getting the fees back. This Amazon Seller Refund Blog can be the perfect place for you to learn about everything that’s associated with seller accounts on Amazon. Make sure you fully understand the terms and processes. At first, these fees may appear small to you but when you have started selling well, every penny will start to matter.