Amazon FBA's Return Policy is Destroying 3rd Party Sellers
I like the concept of FBA, but my experience has me quite concerned with their Customer Service. I recently shipped a dozen wineglasses to FBA, and they were received and stored without issue. FBA subsequently filled an order for 9 glasses and then authorized a return of 6 glasses the following week. No reason is listed for the return and the buyer was fully refunded for those 6 glasses immediately. I was not so lucky. Amazon did not credit the FBA fee to me and they also charged me a return fee! The net impact is that I sold 3 glasses, Amazon kept 93% of the sales revenue, and I only received 7%. That doesn't even start to cover my costs for aquiring, listing and shipping these items to FBA. And the returned glasses? I see that they are back in my inventory and I suppose that I should feel lucky. Amazon FBA could have arbitrarily decided that the buyer didn't need to return them, and that would have cost me even more.
When I started with FBA, Amazon asked for my return policy, which I provided in explicit detail. Rather than implementing my policy, FBA has ignored it and followed Amazon's liberal return policy, which focuses solely on the customer and gouges the 3rd party sellers.
I'm reassessing whether to use FBA. Their allegiance is to Amazon, not to my business, and I don't want them to make decisions for my business. They might be able to handle warehousing and shipping, but not customer service.
ps. The remaining three glasses in my inventory were broken in the warehouse, and I had to chase Amazon for reimbursement.
Amazon FBA's Return Policy is Destroying 3rd Party Sellers
I like the concept of FBA, but my experience has me quite concerned with their Customer Service. I recently shipped a dozen wineglasses to FBA, and they were received and stored without issue. FBA subsequently filled an order for 9 glasses and then authorized a return of 6 glasses the following week. No reason is listed for the return and the buyer was fully refunded for those 6 glasses immediately. I was not so lucky. Amazon did not credit the FBA fee to me and they also charged me a return fee! The net impact is that I sold 3 glasses, Amazon kept 93% of the sales revenue, and I only received 7%. That doesn't even start to cover my costs for aquiring, listing and shipping these items to FBA. And the returned glasses? I see that they are back in my inventory and I suppose that I should feel lucky. Amazon FBA could have arbitrarily decided that the buyer didn't need to return them, and that would have cost me even more.
When I started with FBA, Amazon asked for my return policy, which I provided in explicit detail. Rather than implementing my policy, FBA has ignored it and followed Amazon's liberal return policy, which focuses solely on the customer and gouges the 3rd party sellers.
I'm reassessing whether to use FBA. Their allegiance is to Amazon, not to my business, and I don't want them to make decisions for my business. They might be able to handle warehousing and shipping, but not customer service.
ps. The remaining three glasses in my inventory were broken in the warehouse, and I had to chase Amazon for reimbursement.
33 replies
Seller_CW0P5hgbsiqWX
Everything you say is true. Amazon knows how to extract as much as they can get of a seller's profit. The return system promotes scams and fraud and Amazon really does not care. After all, more products are sold on the venue by 3Rd Party sellers than by Amazon. This means Amazon is out noting when it comes to refunds, it is always the seller's fault.
Seller_waD5es6ha7259
You think it's bad now, just wait till January when all the holiday parties are done and the "Rented from Amazon" holiday decorations/dinnerware/No longer needed gifts hit the FBA returns.
Seller_Gek9O3A1l2ygW
I believe there is also a roughly $5 fee assessed for FBA returns that we’re now stuck with? That’s a financial bonanza paired with the return policies.
Seller_R8v4pETde93ty
Got to play the game how it was designed.
Seller_hkh7ICgYRrm3g
I sell a non-returnable category (food item) People just hit damaged during transit and get to keep it for free no questions asked ( no proof required).... and there are many forums dedicated to teaching people how to hack Amazon in this way...
Seller_e0wCsIcctzMzx
Return costs are a part of doing business, though that cost has gone up significantly in recent years (especially the removal fees which it sounds like haven't hit you yet). However, I think with that many returns it's very likely that your items are being broken in transit. I would never FBA something so fragile.
Seller_z6L37XIGqaTKj
I hate to say it, but selling on Amazon isn't for everyone and a lot of it is dependent upon what type of product you sell. If you sell items that can be easily broken in transit or at someone else's warehouse, then it may make more sense to handle all of the fulfillment yourself. This way, you know how an item was shipped and can more than likely do a better job of preventing breakage than someone earning minimum wage at an Amazon warehouse. Another respondent indicated that they sell food through Amazon. Maybe food isn't the best of items to sell through Amazon, particularly if it has a sell by date or the customer can simply indicate they received it in an unsalable condition. Would you sell a pack of gum on Amazon, a bunch of bananas, high end electronics or even expensive jewelry on their platform? Again, not everything should be sold on their platform and if you do decide to sell it here, it may make more sense to ship the items out yourself. Just my thoughts on the matter...
Seller_vMfm0C3Po03wn
amazon should think about there return policy and make some strict rules about returns because its cost money for sellers case of ppc
Seller_WjEh60WTZfrC5
I couldn't agree more.
Last month I had an order where the customer purchased six items and then returned them all. I lost a lot of money, both in associated advertising costs, shipping costs, three products (which were returned to the Amazon warehouse as customer damaged and unsaleable), and I had to incur the cost of disposing of the unsaleable products.
The most unacceptable thing to me is that the customer gave several reasons for returning the product, and it was clear by this reason for return that the customer did not even read the product page or use the product according to the instructions. I don't understand why the customer made such a hasty purchase and purchased 6 pieces.
Thus, the customer returned the product at will, and the third party seller is responsible for all the damages.
Seller_5xUDjRTyrAgVB
100% agree with you. It's no different for FBM sellers either. We have empty boxes, used products and old rags coming back to us instead of the new products we sent. Then we file Safe T claims and they barely cover cost of back and forth shipping. Refund at first scan was the last dig and nail in the coffin. Now the post office is giving us "adjustments" for returns as well. At first it was only if the buyer sent back in a box. Now we are getting them with 75% of all returns. Amazon and post office doesnt care. It's become a losing business on here. Terrible way to throw out us small businesses from their site
