The Updated Amazon International Returns Policy Explained: A Step-by-Step Guide for Sellers

What's Changing?

Amazon has announced an update to its policy for seller-fulfilled international returns, set to take effect on September 16, 2024. This change primarily affects international sellers who don't have a default US return address in Seller Central.

The key points of the policy update are:

• International sellers must now issue a returnless refund or provide a prepaid international return shipping label within two (2) days of a return request.
• The window for offering return resolutions has been reduced from five (5) days to two (2) days.
• If sellers don't respond within this timeframe, Amazon may refund the customer on the seller's behalf and charge the amount to the seller's account.

Why This Matters

The Amazon international returns policy update is part of the company’s ongoing efforts to shorten the response time for return requests. This will allow Amazon to provide faster resolutions for customers, potentially increasing satisfaction and trust in cross-border transactions.

For sellers, this change means a need for quicker action and potentially revised processes to handle return requests more efficiently. It also emphasizes the importance of having clear, customer-friendly return policies in place.

Return Method Options

When processing Amazon international returns for orders shipped to buyers in the nine (9) European stores, the three (3) North American stores, or Japan, sellers must use one of the following methods:

Method 1: Returnless Refund

If the item costs more to return than to refund, consider offering a full refund without requesting the item be shipped back to your address. 

How does Amazon returnless refund work?

Let's say you sell small, low-cost items like a pack of phone screen protectors on Amazon. The item is priced at $10, and you have a customer in Australia who requests a return because the product was damaged during shipping.

Scenario

• Item Price: $10
• International Return Shipping Cost: $20

Returnless Refund Option

Given the low value of the item ($10) and the high cost of international return shipping ($20), it wouldn't make financial sense for you to pay for the return shipping. Instead, you might choose to issue a returnless refund. This means you refund the customer their $10 without requiring them to send the item back.

Financial Impact

• Cost of Refund: $10
• Savings on Shipping: $20 (since you don’t have to pay for the return shipping)

To enable returnless refund, follow these steps:

• Manage Returns > Returns Settings > Resolutions > Create a Returnless Resolution Rule
• Name your rule.
• Select the Product Category, Return Reason, Regional Store where you want your rule to apply, and Average Selling Price.
• Click Save.

Method 2: Provide a Default Domestic Return Option

Update your domestic return address in your Seller Central account settings. If you don't have a domestic return address, consider using an international returns provider from the Service Provider Network.

Method 3: Provide Prepaid International Return Shipping

Upload a prepaid return label in Seller Central within 2 calendar days of the return request creation date.

Special Considerations for European Stores

Per Customer returns for international sales policy, if you sell in the UK, Spain, France, Italy, or Germany and fulfill orders from abroad, you must either:

• Provide Amazon with a default domestic return address for items equal to or under £20 or €25 (including VAT), or
• Offer returnless refunds for these items.

For example, if you're fulfilling orders from Amazon.de from outside Germany, you must provide a German default return address or a returnless refund if the item is equal to or under €25, including VAT.

Potential Impact on International Sellers

Let's break down a sample scenario to illustrate the financial impact of Amazon’s updated policy on seller-fulfilled international returns.

Scenario

• Product Price: $100
• Shipping Cost for International Return: $30

Old Policy (5-Day Window)

• Day 1: A customer in Germany requests to return a product.
• Days 2-5: The seller evaluates the request, considering the return shipping cost.
• Day 5: The seller issues a prepaid return label or a returnless refund, avoiding any intervention from Amazon.

New Policy (2-Day Window):

• Day 1: The same customer requests to return a product.
• Day 2: The seller now has to act much faster, deciding whether to provide a prepaid return label or a returnless refund.some text
  • If the seller misses this two-day deadline, Amazon automatically refunds the customer and charges the $100 to the seller's account.
  • If the seller meets the deadline and provides a prepaid label, they incur a $30 shipping cost.

Financial Impact

• Returnless Refund: If the seller decides it's cheaper to issue a returnless refund, they lose the full $100 but avoid the $30 return shipping cost.
• Prepaid Return Label: If the seller opts to provide a prepaid return label, they retain the item (and may decide to resell it on Amazon or other ecommerce platforms) but spend $30 on return shipping.
• ‍Missed Deadline: If the seller misses the two-day deadline, Amazon refunds the $100 to the customer and charges the seller's account. The seller loses the $100 and may also risk negative feedback.

Comparison

• Returnless Refund (Old vs. New Policy): The financial impact remains the same, losing $100.
• Prepaid Return Label (Old Policy): Seller has 5 days to decide, potentially reducing costs by exploring cheaper shipping options.
• Prepaid Return Label (New Policy): Seller has just 2 days, leading to a quicker decision and potentially higher shipping costs.
• Missed Deadline (New Policy): Seller automatically loses $100 if they fail to act within two days.

Aside from financial impact, this policy change could have the following implications for international sellers:

• Increased operational pressure: The shorter response time may require more immediate attention to return requests.
• Potential for more returnless refunds: To meet the two-day deadline, sellers might opt for more returnless refunds, especially for lower-value items.
• Higher costs: Providing prepaid international return labels could increase shipping expenses.
• Need for process automation: To meet the tighter deadline, sellers may need to invest in automating their return processes.

How to Comply with the New Amazon International Returns Policy

To ensure compliance with the updated policy, international sellers should:

1. Set up alerts: Implement a system to notify you immediately of return requests.
2. Prepare return labels: Have prepaid international return shipping labels ready to upload quickly.
3. Consider returnless refunds: For low-value items, a returnless refund might be more cost-effective.
4. Optimize your return policy: Review and update your return policy to align with the new two-day return window, while still protecting your business interests.
5. Invest in customer service: Improved presale communication can reduce return rates and make handling returns more efficient.
6. Use Seller Central tools: Familiarize yourself with the “Manage Returns” page in Seller Central for quick label uploads.
7. Consider using Fulfillment by Amazon (FBA) for international sales: FBA can handle returns on your behalf, potentially simplifying compliance with this new policy.
8. Analyze return data: Regularly review your return reasons via the Manage Returns page (seller-fulfilled) or Returns Dashboard (FBA) to identify and address common issues, potentially reducing future returns.‍
9. Leverage technology: Use software solutions to automate return request notifications and responses.

How Seller Investigators Can Help

Staying compliant with Amazon's policies can be challenging. This is where Seller Investigators by Carbon6 can be invaluable:

Efficient Case Management

The SI team investigates, files, and manages FBA reimbursement cases efficiently, saving clients time and effort.

Transparent Dashboard

Seller Investigators offers a clear view of the reimbursement process, tracking every claim and finding every dollar owed to sellers.

Amazon Terms of Service (TOS) Compliant

All processes are compliant with Amazon's TOS, ensuring you stay in good standing with the platform.

Expert Support

With dedicated case managers and international support, Seller Investigators can help navigate complex return scenarios across different marketplaces.

Cost-Effective

You only pay a 25% commission when you get your money back, making it a risk-free option for sellers.

By leveraging Seller Investigators' expertise, you can focus on growing your business while ensuring you're not losing money due to complex processes or overlooked reimbursement opportunities.