FBA Pick and Pack fees
Hi there, in the context of Fulfillment by Amazon (FBA), one area that raises concerns is the lack of reimbursement for FBA fees when a customer returns an item. For instance, consider a scenario where a seller earns a net profit of AED 2 per sale, but incurs an FBA fee of AED 6.30. If the customer returns the item, the seller not only forfeits the profit but also absorbs the FBA fee, effectively losing more than twice the earnings from the sale.
This situation becomes even more challenging when the returned item is marked as damaged, as the seller then bears the cost of the item itself without any compensation. This compounds the financial impact and underscores the need for a more balanced approach to handling returns under the FBA program.
What strategies can we explore to minimize the impact of these fees on sellers while maintaining a customer-friendly return policy?
2 replies
Noor_Amazon_
Hi @Seller_CLpTjmu2YN5OR,
Thanks for reaching out to the Forums.
Your feedback is appreciated. Meanwhile, for further insights regarding the topic I invite you to check the following Help pages:
FBA lost and damaged inventory reimbursement policy
Regards,
Noor
Seller_eXoCuTPIDnoZN
Same concern. it's crazy. We loss the FBA Fulfilment fee per item due ,to refused delivery. custom return, Order not received, Shipping Address Undeliverable and more. Per item minimum FBA Fulfillment fee is AED7.35. After reconciliation, we have a total of AED1,300++ worth of loss on FBA returns. Most of the returns are refused delivery or Shipping address undeliverable. I understand that they fulfill the order and therefore, they must charge. But I dont think its fair to charge per item. Or at least in the event of return which is at customer's fault, they should charge a minimum amount only. They will still return most of the return to sellable position and resell it and charge another fulfillment fee on the same item. Anyway, I just hope for some leniency on sellers part. They are even asking us to join the sale and drop the prices further despite the losses. We have to hang on and hope for a better policy on this fba fulfillment fee on returns.
