When opening a store on the Amazon platform, sellers are often walking on thin ice. In the early stage, I spent a lot of energy to select products, prepare products, and advertise. Finally, the products were sold, but they were returned for some strange reasons, which made the sellers feel very bad.

Returns are inevitable for Amazon sellers. Once returned by sellers, delivery costs and refund management fees may be lost. If you do not calculate the return cost clearly, find the reasons and make adjustments in time, the subsequent losses may be very painful.

Returns frequently encountered by sellers

1) The seller has not shipped the goods, and the buyer has already made a return

This kind of return situation is relatively good. Although the order is lost, there is no need to bear additional losses such as logistics, and it is only necessary to process the buyer's return application in time.

2) The seller has shipped the goods, and the buyer has not received the goods on the way

In this case, the seller can only take back the goods as much as possible, and then give a full refund to the buyer's return application.

3) The buyer has received the goods, but forced the return

In this case, the goods will be returned to the Amazon FBA warehouse for processing by FBA. Amazon sellers can contact FBA to send the goods back to the inventory warehouse, and then refund the buyer when the goods are returned.

If the returned goods are not damaged, the seller can relabel them and sell them again. If they are damaged, they will receive a notification that the goods are damaged by Amazon, and they will generally be destroyed. In this process, various expenses will be incurred.

What are the fees for Amazon returns?

1) Return pickup fee

For FBA orders on Amazon, if the customer requests a return, the general category sellers do not need to pay any additional fees (FBA staff come to pick up the returned items free of charge); but if the product requested by the buyer belongs to some special categories, then when the return is made Amazon also charges sellers an additional fee for return pickup.

2) Refund management fee

When an FBA order is returned, Amazon will deduct 20% of the commission and return 80% of the commission to the seller. Regardless of whether the buyer refunds part or all of it, the 20% commission is called the refund management fee.

How is the return fee calculated?

Amazon's return orders are unlikely to generate profits for sellers, but may cause losses. As for how much money was lost on this order, how is it calculated? According to the above, it can be divided into two situations:

1) The product can be sold after the return

FBA first shipping fee + FBA delivery fee + refund management fee

2) The product cannot be sold after the return

Product purchase cost + FBA first shipping fee + FBA delivery fee + refund management fee + removal/disposal order fee

PS: If it is clothing, watches, jewelry, shoes, shoes, bags, etc., you need to bear the cost of sending it back to the FBA warehouse.

The return processing fee is charged according to the size of the product and the weight of the shipment. The price list is as follows:

The removal/disposal order fee is also charged according to the product size segment and shipping weight, and the price list is as follows:

More efficient return fee calculation solution

For Amazon sellers, it is very troublesome to figure out Amazon's various fee rules. However, cross-border sellers can quickly obtain timely and accurate refunds of various fees through the Lingxing ERP system.

1) Detailed cost accounting to improve profit accuracy

Leadstar ERP has opened up the API interface with Amazon, automatically pulls data from Amazon reports such as Transaction and Summary, and intelligently calculates every penny spent on products. Among them, the seller can view the [Expense Refund Amount] in the MSKU, ASIN, parent ASIN, SKU and other dimensions of the profit report, and the various expenses incurred by the return order can be seen at a glance.

Leading Star ERP accurately and quickly obtains the return fee, which helps sellers understand the real profit of the store and provides strong data support for the refined management of cross-border e-commerce. Avoid the illusion that sellers think they are making money, but actually don’t make much money.

2) Accurately obtain profits and gain timely insight into profit and loss

In addition to accurately obtaining the data for calculating Amazon's profit, Leadstar ERP can also break through the limit of the profit report provided by Amazon on the 5th of the next month, and support the boss to view all the data of the profit report every day.

In the daily updated profit data, the boss can truly understand the company's profit, find problems in time and take measures to stop losses to ensure the health of the company's capital flow.

Return fees for Amazon orders are often a hidden expense that sellers can’t figure out. Sellers want the long-term healthy development of the enterprise, and calculating the expenses similar to the return fee is the only way to refine the operation management.

Leadstar ERP's profit report has multiple dimensions, accurate data, and quick update, which helps sellers to understand every revenue and expenditure in dimensions such as stores and ASINs in a timely manner, and improves decision-making efficiency. Only by identifying the reasons for the inflated costs and prescribing the right medicine can we better optimize products and increase store profits.