Quick Guide: Amazon Merchant Fulfilled Return Policy

Editor's Note: This article has been updated to reflect the Amazon merchant fulfilled return policy and returnless replacement option for 2021.

Managing shipping and returns can be complicated for merchant-fulfilled Amazon sellers. In order to streamline the process, Amazon continues to refine the returns procedure for seller-fulfilled items. 

Automatic Authorization

Returns for merchant-fulfilled items that are included in the Amazon returns policy are authorized automatically.

The returns policy varies by category, so be sure to check it out to see if any of your seller-fulfilled products qualify for automatic authorization. Customers who are returning items that qualify can instantly print a prepaid return shipping label in the Online Return Center, so you must have a return address on file. Amazon will only send you a return request when it’s outside of the policy or exempt from automatic authorization.

Many merchants have expressed concern over the years about this policy change. Automatically authorized returns mean that the buyer won't have the ability to contact the seller prior to sending the item back. This also means that the merchant won't be able to communicate with the customer about the return, a frustration for sellers who pride themselves on providing top-notch customer service.

Amazon Returnless Refunds

Merchants who fulfill their own orders can also enroll in returnless refunds. This allows sellers to set rules that issue an automatic refund without instructing the buyer that the item be returned.

While this could save some merchants return shipping and processing costs, many critics have pointed out that the system could easily be abused by buyers who want free items. Sellers can choose whether or not to enroll in this program based on their inventory and business needs.

Free Replacements

Amazon announced that starting April 15, 2021, MFN and SFP customers will also have the option of a returnless replacement for items that are eligible for returnless refunds.

Amazon says this addition to the Prepaid Return Label program was done in an effort to help sellers preserve their sales and reduce refund transactions.

It looks like this: if a customer receives an item that’s damaged, defective, or different from what was ordered, they may now request a refund or a replacement product. Customers are offered a replacement only if inventory of the original item is available in stock and in the same condition as that original item. Customers have seven days to return the original item, and Amazon will notify you to send a replacement. You can see any replacement orders on the Manage Orders page in Seller Central.

If the inventory isn’t available, you can cancel the replacement order and still issue a refund. You will not be paid for fulfilling a replacement order, nor are you charged any additional fees for fulfilling replacement orders.

Refund at First Scan

Starting May 4, 2021, products returned through the Prepaid Return Label program will automatically be eligible for Refund at First Scan (RFS). This “mandatory” feature was already required for FBA sellers but is new to seller-fulfilled items. Customers will receive a refund after the first carrier scan when returns are dropped off or shipped back with an Amazon prepaid return label. Note that returns that are self-shipped or use a merchant-paid label will not be eligible for a Refund at First Scan.

Returnless Refunds for International Seller-Fulfilled Orders

Another change to the return policy begins May 25, 2021. At that time, sellers who fulfill orders in the US from another country must provide a valid US return address for items under $25. Amazon will use this address to create a prepaid return label for an eligible return request.

If a US return address isn't provided, Amazon will issue the customer a refund and won't require the item to be returned, thereby turning it into a returnless refund. If you don't have a local return address, the marketplace suggests visiting the Solution Provider Network. You can also find more information on customer returns for international sales and setting a default return address in Seller Central.

Amazon Merchant Fulfilled Return Policy: The Fine Print

Merchants who do not enroll in returnless refunds have two business days to issue a refund after receiving a request. If a seller does not act within this time frame, Amazon could refund the customer and charge the amount to the seller’s account.

Depending on the items returned, the merchant could be held responsible for return shipping costs. Some items do not qualify for prepaid return shipping; sellers can ask for exemptions for specified inventory items. Amazon merchant return policy disputes can be appealed to Amazon directly.

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