As a seller, managing Amazon returns is an essential part of the business. Here are some expert tips to consider.
While no seller likes to think about it, processing returns is part of the business. And if you’re an Amazon seller, you should anticipate this. That still doesn’t alleviate the stress that comes with handling Amazon returns.
Amazon has its own return policies; if you’re an FBA seller, you must adhere to these requirements. That said, many aspects of the returns process are still in your control.
There are many tips that sellers can use to manage returns and minimize the number of returns. Amazon also offers alternatives to returns that sellers can take advantage of.
Overview of Amazon Returns Policies
Amazon’s warehouse return policy offers many benefits for FBA sellers. For example, Amazon handles all customer service and ships the item back to the warehouse, which is a big weight off a seller’s shoulders.
That said, a seller’s return policy must match Amazon’s. If a seller also sells off the Amazon platform, such as their website, their personal return policy may differ from Amazon’s. This can cause a lot of confusion and inventory issues.
The good news is that the Amazon returns policy is very simple. While there are some exceptions, most items are eligible for 30-day returns. All sellers should still read Amazon’s return policy and agree with these terms before selling on FBA.
To track returns, Amazon will assign a Return Merchandise Authorization (RMA) number. This number tracks the return and Amazon sends it to both the seller and buyer.
Once the item arrives back at Amazon warehouses, the number will ensure the product is placed in the correct location and won’t get mixed up with other products.
How to Manage Returns on Amazon
Learning how to handle Amazon returns is part of being a good seller. Here are the best practices for managing returns on Amazon.
Track All Return Requests
Even though Amazon handles all customer communications, the ecommerce giant will still keep sellers in the loop. Amazon will send sellers an email when a customer returns an item. Therefore, it’s still essential that sellers keep an eye out for these emails and return notifications.
What should sellers do with this information? If necessary, log all Amazon returns, including the RMA number and product. Verify that Amazon returned the item to the warehouse and that the inventory has been updated.
Double-check this information is correct on both the “Returns” and “Inventory” sections of your Seller Central account.
What happens if your products don’t make it to the Amazon warehouse? You can request an FBA reimbursement.
Verify Return Request
Even with Amazon’s policies, sellers have plenty of control. For example, you can approve or decline a return request and even offer an alternative (we will cover that later).
Sellers can take these actions to review every return request. Once Amazon emails you about a return request, head to the Manage Returns section on Seller Central. The return request will include information such as the product, the reason for the return, and the timing.
What information should you verify? First, check the time window. As stated, Amazon gives customers 30 days to return an item. If the customer initiates the return after this, you can decline the return.
Next, check the product category. While most categories are eligible for Amazon returns, there are some restrictions for certain categories, including electronics and hazardous materials. You can check Amazon’s return product restrictions here.
Inspect Returned Item
While returned items are sent back to FBA warehouses, sellers can request products be sent to them. Do this by submitting a Removal Order. On Seller Central, go to the Manage All Inventory page and use the drop-down menu on the right side of the screen.
Once you receive the item, inspect it yourself. Find flaws, wear and tear, or damage that Amazon employees may not catch. Since product issues can result in dissatisfied customers, it’s integral that sellers must take it upon themselves to assess product quality.
There is a downside to this: Amazon charges you for Removal Orders. That’s why sellers should only conduct this step if an item was returned due to product damage.
Know the Warning Signs of Fraudulent Returns
Fraudulent returns do happen. Some common reasons for fake product returns include false claims and not returning the original item. Frequently returned products can also be a red flag for return scams.
What should you do if you suspect you got a fraudulent return? First, report it. Amazon will take measures to ban the customer from using their platform. They will also analyze their activity to prevent other fraudulent transactions and returns in the future.
How Can You Minimize Amazon Returns?
While preventing returns may seem unrealistic with the Amazon return policy, there are many steps you can take to reduce your Amazon returns. These include:
- Product support. While Amazon offers customer support, there are ways that FBA sellers can also assist customers. Sellers can answer questions in the FAQs section and respond to customer reviews.
- Detailed product descriptions. Have clear and accurate product descriptions for all items in your inventory. Include high-quality images that show your products at all angles.
- Have a quality control process. Ensure all products are free from defects before sending them to Amazon warehouses.
- Competitive pricing. Price your products based on market and competitor research. If a customer finds a similar yet cheaper product, they will be more inclined to return yours.
- Include product demos and tutorials. Include video demos and tutorials that educate buyers on product usage and features.
Return Management Alternatives
Return logistics can be confusing and tedious. Fortunately, you don’t always need to resort to returns if a customer isn’t happy with their purchase. Here are some alternatives to Amazon returns.
Replacement Item
If a customer gives a bad review, contact the customer before they initiate a return. Sellers can do this by using Amazon’s messaging feature.
When contacting the customer, offer to send them a replacement item. If a defective product or shipping damage was the cause of their complaint, they will likely be happy with a new product.
Plus, this strategy is beneficial for the seller. You can retain your revenue and not have to pay return fees. Customers are still satisfied and you have the chance to improve a negative review. All of this results in better seller metrics and positive brand image.
FBA Donations
If a customer returns a defective item that isn’t fit for resell, you can always donate the item. Amazon partners with nonprofits to donate these products to people in need.
Before putting up your items for donation, you’ll need a certificate. You can apply at the FBA Donations page.
Returnless Returns
Returnless Returns is a program where buyers don’t need to send back the item to receive a refund.
There are reasons why sellers may want to participate in returnless returns. If you sell low-cost products, returning them may be too much of a hassle. You can also make returnless returns available to international customers to save you and the buyer both time and money.
You can apply to Returnless Returns here.
Grade and Resell
Grade and Resell is an optional program where sellers can use a separate resell channel specifically for returned inventory.
Amazon conducts a thorough inspection of the product to check the item’s condition. Warehouse employees will write a detailed description that buyers can read before purchasing the item. From here, Amazon employees assign the products with one of these ratings:
- Like New
- Very Good
- Good
- Acceptable
This is a great option if you sell products like electronics that have strict return requirements, which also includes accessories like camera lenses and headphones. Amazon workers will check the functionality and parts of the device to ensure they still work.
Minimize Amazon Returns
Amazon returns are part of being an ecommerce seller on the biggest online selling platform. If you sell on FBA, Amazon handles the customer communication and shipping for you. But sellers must still manage their own returns and take steps to minimize them.
Another way you can minimize returns is by partnering with an ecommerce agency. We can enhance your in-house management, optimizing your products, and improving your marketing and advertising.
Author
Stephanie Jensen has been writing ecommerce content for seven years, and her copy has helped numerous stores rank on Amazon. Follow her on LinkedIn for more insight into freelance writing and creating high-quality content.
