It is essential that sellers understand all the Amazon fees. We assume they apply to everyone. The Amazon fees that you should be aware of include those that are levied upon you, the ones that can take a cut from your profits. Amazon restocking charges are a rare fee that will actually make you some money back. You should understand their workings!
What are Amazon Restocking Charges?
tocking charges can be used to refer to a partial refund for returns that don’t qualify for a full refund. This fee can be charged to customers or deducted from the refund. It depends on the return details and the condition of the product.
Amazon has many policies that are designed to ensure customers have an enjoyable experience. Their return policy favours the buyer. Amazon understands that sometimes sellers aren’t worthy to pay the return costs. These cases may be subject to restocking fees, which allow you to keep more of the sales price.
What is the Amazon Restocking Fee for?
Amazon charges a restocking fee based on the item’s cost. The percentage that you can charge Amazon for restocking fees will vary depending on the item and the way it was returned. However, not all cases are eligible for the full 100%.
Amazon guidelines allow you to charge up to 50% in most cases where the order is eligible for a restocking fee.
eCommerce will always have a number of returns. This is the nature of eCommerce. Customers can’t physically see the products before they make a purchase. Most returns are not eligible for a refund. This is to ensure a positive customer experience.
These situations can be frustrating for sellers. It’s not a good feeling to have to give a full refund for problems that weren’t your fault. To provide a great customer experience, it is important to accept returns without charging customers a fee. This is something Amazon values, and many sellers use the platform to do so.
How to get the Amazon Restocking Fees Benefit
Amazon restocking fees are not automatically applied to orders that qualify for the program. You must take all necessary steps to ensure that the fee is not deducted from any refunds you issue for orders you fulfil yourself.
Amazon recommends that you wait to issue a refund on returns until the return has been received. This allows you to inspect the item and decide if it is worthy of a restocking charge. The return must be returned within two days. Make sure that you have a procedure in place to quickly inspect returns.
If you are confident that a return is eligible for a restocking charge, you will be able to choose a refund amount when you issue refunds in your Amazon account. It’s a good idea for you to explain to the buyer why you are refunded less than the total amount. A reason will reduce the chances of you having to deal with angry customers A/to-Z guarantee claim. It’s smart to take a photo of your item if the return fee is for the item’s condition.
When you can skip the restocking fee
Amazon sellers often have tight margins and don’t want any of their profits to go to waste. However, charging customers a restocking charge can have negative consequences. It creates a bad customer experience and makes it more difficult for you. Offering a no-hassle refund or letting your restocking fee slip, especially for low-cost products, can help build goodwill and protect your seller ratings.
It’s up to you to decide if the benefits of providing better customer service are worth the cost. However, it is something that you should consider every time you look at how to best manage a return.
