Interpretation of FBA Return Policy Update: Amazon “pay”, seller buyers benefit?

Amazon updated its FBA return policy in September to reduce refunds and increase customer satisfaction. Amazon currently allows customers to return and replace orders shipped by Amazon for free, and Amazon pays for shipping.

In an email to the seller, Amazon described the FBA return policy update as: “Reducing the amount of work required to manage returns and reducing customer return dissatisfaction (RDR), thereby increasing the seller’s rating.”

The Amazon Seller Center announcement is as follows:

The customer returns free of charge and the seller does not have to bear the shipping cost.

In the future, returning FBA merchandise will be easier for customers. From September 5, 2018, customers can request a free return and the seller will not have to pay any fees.

For sellers, this means less focus on payments and refunds, as sales of original items will not be affected by returns. For the customer, it means more convenient return and exchange operation, which is also consistent with Amazon’s overall return system.

This adjustment will be automated by the system and the seller will not need to take any action.
Mode of operation:

1. The customer applies for return or exchange through the online return center or customer service.

2. If the customer requests a replacement, Amazon will ship the goods directly from the seller’s inventory and ask the customer to send the original to the return center. If the customer does not return it or the original item is damaged upon return, Amazon will refund the seller according to the FBA Customer Return Policy.

Customer return conditions:

– Items must be in a new state.

– The same item is included in the seller’s inventory.

– The product is a returnable item.
Is the new policy beneficial to the seller?

The new policy has fundamentally reduced the seller’s return and exchange costs. By supporting free returns, customers will enjoy a smoother Amazon shopping experience.

Some sellers are concerned that the new policy will mean more customers can return goods for unjustified reasons, and customers may also get the opportunity to replace damaged or misused products for free.

Obviously this policy has advantages and disadvantages for the seller, and the final result depends on the actual operation.

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