Summary: Amazon is charging sellers for items with high return rates and changing its returns processing fee for 2024. This tutorial offers tactics for lowering returns, how to check return rate thresholds and details on the new charge structure.

Key Takeaways

• Except for clothing and footwear, Amazon will charge a fee for goods with return rates above designated thresholds, which are relevant to most categories.
• On the FBA Returns Dashboard, track the return rate of your product to ascertain whether you owe the fee.
• Use techniques include competitive price, quality control, and precise product descriptions to lower returns and prevent fees.
• Think about professional services like Amazon EBC to improve customer experience and product listings, thus reducing returns eventually.

Amazon recently announced it will be changing its returns processing fee in 2024. The way Amazon charges for return fees will be altered with this update, rolling out thresholds for return rates for several product categories. Sellers will be able to check the revised fees and see if they fall above or below certain levels in the FBA Returns Dashboard. Knowing these updates helps sellers to prevent unanticipated expenses. 

This post will go over the revised FBA Returns dashboard, 2024 changes to the returns processing charge, and suggested strategies for lowering Amazon returns.

Amazon Return Rate Processing Fee Update

Starting June 1, 2024, Amazon will begin charging an updated fee for processing returns on products with high return rates. This won’t apply to clothes and footwear. Furthermore, Amazon first announced this as part of the 2024 US fee changes. The company plans to make these changes every three months. For example, they’ll charge for returns of items shipped in June and September.

To help sellers understand returns and return rates better and to find ways to avoid these fees, Amazon has made some changes to the Return Insights Dashboard. These updates aim to help both new and long-time Amazon sellers. You can find the following updates in the dashboard on the FBA Returns page:

• The number of sent-back items and percentages of returns used to figure out the charge
• Lowest return rate cutoffs above which charges are applied
• Number of returned products over the cutoff that get hit with fees

The new processing fee examines product returns over three months. This period starts when the product ships and ends two calendar months later. Take products shipped in June as an example. Their returns will be monitored through June, July, and August. The fee applies if the total returns for products shipped that month go beyond the limit set for that product’s fee category. If returns exceed this threshold, the fee will affect each returned item above the limit. You can now find this limit below.  

Products shipping fewer than 25 units in a month don’t incur the updated returns processing fee for that month. Also, Amazon won’t charge the fee for the first 20 returned units exceeding the return rate threshold for products in the New Selection Program.

How to Cut Down on Amazon Returns

Amazon sellers can check the following tips to lower the number of items sent back. When fewer products come back, customers are happier, and sellers pay lower fees.

• Provide accurate and detailed product descriptions, including dimensions, materials, compatibility, and features. Use high-quality images from multiple angles for a realistic view. Offer accurate sizing guides for clothing and footwear to help customers choose the right fit.
• Clearly outline your return policy in product listings and at checkout, respond promptly and effectively to customer inquiries, and ensure secure packaging to prevent damage during shipping.
• Implement quality control measures to prevent defective products from reaching customers, and regularly review customer feedback to identify common issues and make necessary improvements.
• To ensure success, maintain competitive pricing with similar products on Amazon and clearly communicate any promotions or discounts to avoid misunderstandings.
• Utilize a dependable fulfillment method like Amazon FBA or a reputable third-party provider for fast and reliable fulfillment while ensuring accurate inventory management to prevent stock outs or overstocking.

FAQ

• What is Amazon’s Returns Processing Fee?

Amazon has a fee for FBA products with high return rates. This fee kicks in when returns go above specific limits for each category.

• What is an acceptable return rate where I won’t have to pay the fee?

Amazon sets different return rate limits for each category when it charges a returns processing fee. You’ll need to check the limit for each category your products fall into. You can get the information on your FBA Returns page. If you send out less than 25 units of your product in a month, that product doesn’t get hit with a return processing fee.

• How does the returns processing fee starting June 1, 2024, differ from the fee now charged for returns of Apparel and shoe products?

The expanded fee has an impact on categories beyond apparel and shoes beginning June 1, 2024. It applies to items with the highest return rates compared to other products in their group. This fee aims to address the costs of handling returned products and to cut down on waste. We’ll let you know the specific return rate threshold for each product category before this fee rolls out on June 1, 2024.

• How do you calculate my product’s return rate?

Your product’s return rate is the percentage of units shipped in a given month that customers send back during that month and the next two calendar months.

• How much is one seller charged for the Returns Fee?

How much you pay for the returns processing fee changes based on your product’s category. Each category comes with its own fee. You’ll get charged this fee for every returned item that goes over your product category’s return rate limit.

Conclusion

Amazon will be implementing changes to their returns processing fee starting in 2024. The fee will be charged for products with high return rates, excluding clothes and footwear. The fee will be based on thresholds set for each product category, and sellers can check the revised fees on the FBA Returns Dashboard. 

 

To avoid unexpected expenses, sellers can use strategies to lower Amazon returns, such as providing accurate product descriptions, implementing quality control measures, and maintaining competitive pricing. Here, opting for our professional Amazon EBC Services would help create quality images and A+ content for product descriptions. Reach out to us to get comprehensive solutions for your business.