How to Sell on Amazon in 2025: A Beginner’s Guide

Returns and refunds are inevitable when selling on Amazon, with return rates averaging 5% to 15% across categories (MyFBAPrep, 2024). Managing them well can turn challenges into opportunities to build trust and loyalty with your customers. By understanding Amazon’s return policies and proactively addressing issues, you can maintain strong seller metrics and create a seamless customer experience.

What Are Amazon’s Return Policies for FBA and FBM Sellers?

FBA Return Policies

With Fulfillment by Amazon (FBA), Amazon manages the return process, following its own policies to determine eligibility. Sellers have limited control, even when the buyer is at fault for misuse or damage.

Standard Window

Customers can return items within 30 days, though exceptions apply, such as extended holiday return periods or 90-day windows for unopened Baby category items.

Return Evaluations

Returned items are assessed for resale. Items in new condition are added back to your inventory, while damaged ones are marked “unsellable.” Damaged or unsellable items are categorized as “Defective” or “Customer Damaged.”

Reimbursement

If Amazon damages an item, you’re reimbursed. For customer-caused damage, reimbursement is unavailable unless covered by Amazon’s Safe-T Claim program.

Inventory Evaluation Settings (2024 Update)

Sellers can choose to inspect returns themselves, ensuring quality control for items like electronics or products with moving parts. This is particularly useful for sellers of electronics or items with moving parts, as it gives them the opportunity to personally assess whether a product is truly unsellable. You can manage these settings in Seller Central under FBA Inventory Evaluation Settings.

FBM Return Policies

For FBM sellers, managing returns is entirely your responsibility.

Timely Action

Provide return labels and process refunds within two business days to maintain good metrics.

Inspection

Assess returns for resale potential, such as reclassifying a slightly damaged item as “Used – Like New.”

Custom Policies

Sellers can set conditions, but they must comply with Amazon’s guidelines.

What Happens if the Customer Doesn’t Return the Product?

If a customer doesn’t return an item within 45 days, Amazon recharges them and reimburses the seller automatically. In rare cases, sellers may need to file a support ticket for reimbursement.

How Can I Reduce Return Rates on Amazon?

Optimize Listings

Use accurate descriptions, high-quality images, and clear sizing details to align customer expectations.

Enhance Quality Control

Inspect inventory regularly and address recurring issues with suppliers. Packaging improvements can also reduce shipping-related damage.

Customer Communication

Answer buyer questions promptly, and include usage or care instructions to prevent unnecessary returns.

FBA Returns Fees

Amazon has introduced additional fees for returns exceeding category thresholds.

Threshold-Based Fees

Higher return rates than category norms incur extra charges. For example, exceeding a 10% category return rate triggers additional fees. For example, if your category’s standard return rate is 10% but your product reaches 15%, you may incur extra fees.

Exemptions for Low-Volume Products

Products shipping fewer than 25 units monthly are exempt.

Apparel and Shoes

Return fees are charged for every returned item, regardless of return volume.

Fee Calculations

Return fees depend on size tier, shipping weight, category, and return rate. For instance, a large standard item in the electronics category exceeding its return threshold will incur combined fees. For more details on how Amazon calculates return fees, check out this website. Additionally, see the table below for return rate thresholds per category.

Amazon Return Rate Threshold Per Category

Naimi Ismadi

April 2, 2025

Naimi Ismadi is a content and marketing specialist at BQool, helping Amazon sellers scale their businesses through clear, engaging insights on repricing tools and smarter selling strategies.