New return rules

We received an email from our 3rd party software company that we run our Amazon sales through say the following…

Amazon Prepaid Return Label feature for UK sellers - 5th July

Amazon wrote to all sellers about this feature last week, and with EU VAT regulations coming in on 1st July we thought it worth reminding you about this so you don’t miss it.

_Starting 5 July 2021, Amazon will require all sellers to either offer prepaid return labels for a tracked ship method (domestic only) or returnless refunds for customer return requests that fall within the scope of the [ Amazon Return Policy ]

Tracked shipping offers customers and sellers visibility of the status of the returned item, which also protects sellers against loss of items during transit. To ensure you are meeting this requirement and providing customers access to prepaid return labels, Amazon will enable the Amazon Prepaid Return Label (APRL) feature for sellers with a UK default return address. Currently Hermes and Royal Mail are the only integrated third-party carriers that support returns within the UK.

The cost of the return label automatically issued on your behalf will be charged to your seller account when the item is received and scanned by the carrier. It is therefore important to review and keep your Amazon seller account details up to date, including your VAT information.

Can someone point me in the right direction if I’ve missed something obvious here. Do we need to start issuing return labels on all delivered items, or going forward to we just need to authorize the returns as a “I will provide a pre-paid postage label for this request.” on the return requests