Elevated Seller Quick Bite: Navigate Amazon’s New Returns Processing Fee with Ease

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Attention Amazon Sellers! There's a crucial update coming to Amazon's returns policy starting June 1, 2024, that you absolutely need to know about. Amazon is set to introduce a returns processing fee for products with high return rates, segmented by categories. Let's dive into what this means for you and how you can stay ahead of the curve.

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What Does This Mean for Me?

If you sell products in any category (apart from apparel and shoes) and have a higher than average return rate, the returns that used to be free will now come with an additional fee for each returned unit that exceeds your category's specific threshold. This change is significant for sellers looking to maintain and grow their profits.

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What Are These Thresholds?

Each product category has its own return rate threshold. If your return rate surpasses this threshold, you will be charged a processing fee for the excess returns. Here’s an illustrative example from Amazon:

Example:

• Units Shipped: 1,000 in June
• Units Returned: 120 by the end of August
• Category Threshold: 10%
• Fee Application: Returns exceeding 100 units (10% of 1,000) will incur a fee. Hence, 20 units would be charged the returns processing fee, which will be billed between September 7 to 15.

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Key Points of the New Policy

• Returns Processing Fee:
  • Applies to products with return rates above category-specific thresholds.
  • Effective for units shipped on or after June 1, 2024.

• Exemptions:
  • Low Volume Exemption: Products shipping fewer than 25 units in a month are exempt.
  • FBA New Selection Program: Enrolled products get a waiver for up to 20 units of each eligible parent ASIN. Returned products must be received at a fulfillment center within 180 days of the first inventory-received date.

The Cost to You

For detailed fee calculations and rate cards, please click here.

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How Can Elevated Seller Help?

High return rates not only incur fees but can also impact your product's ranking and sales, as Amazon may flag your product as problematic. At Elevated Seller, we specialize in identifying and addressing the causes of high return rates. By optimizing your listing images, A+ content, and text, we can help you break the cycle of high returns, ultimately boosting your rank and sales.

Speak with your account manager today to learn more. If you’re not yet working with Elevated Seller, what are you waiting for? Contact us today to get started!

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