How does Amazon handle returns?
No matter what kind of Amazon sellers are, they will encounter situations where buyers apply for returns, so Amazon also has detailed regulations on returns. First of all, in order to help reduce the potential loss of returned or damaged goods, Amazon has created some different procedures to help sellers recover Find a new home for some money or return, damaged or used goods.
- Amazon Logistics Clearing
The FBA liquidation program is designed to help sellers liquidate excess inventory and buyer returns, rather than destroy inventory and avoid paying additional storage fees.
How it works: When submitting a clearance request in Seller Central, Amazon will evaluate several factors to determine the average price of a seller’s product. Wholesale liquidators will pay around 5% to 10% of the average product price. Once a seller’s inventory is purchased by a liquidator, Amazon will pay the seller within 60 days.
The program is a great way to recoup some money from excess or used inventory, rather than paying Amazon to return or destroy the goods.
- FBA grading and resale
The FBA grading and resale program allows sellers to relist and sell unfulfilled returns as used items, rather than paying Amazon to destroy or return them.
How it works: Submit inventory that sellers can’t fulfill into the program, then Amazon will assess the situation and classify the product as used - like new, used - very good, used - good or used Products, Acceptable Used Products, and Amazon will create a new listing for the seller.
Instead of creating more unfinished inventory waste and destruction, the program helps sellers cover the potential loss of returns.
- FBA donations
Another option for sellers returning or backlogged is to donate to them through the Amazon FBA donation program. The program allows sellers to donate eligible inventory to select U.S. charities.
This earth-friendly alternative brings new life to sellers’ products, rather than destroying them and generating more landfill waste. Amazon has partnered with Good360 to distribute donated FBA inventory across the US nonprofit network.
The program is a special way for sellers to reduce waste, get rid of unnecessary inventory, and donate needed items to those in need, and it even offers sellers some tax benefits.