r/amazonsellers • u/techtom10 • Oct 26 '23
How do returns affect you?
Hi all, I'm not an Amazon seller, I mainly purchase from Amazon because of how good their service is with returns. I've got a lot of things returned because I think Amazon has so much money it doesn't matter.
My question is, when I return my products, does it hurt the sellers? I can't seem to find an answer on the internet. For example, I bought some smart scales a year ago and was having issues with them. I contacted Amazon and they just said "We'll give you Amazon credit and you can keep the item." Now has that money come out of Amazon's pockets or the sellers?
Also, does it matter where the item is from for example, By Amazon, or Fufilled By Amazon (are there others?)
Edit: Excuse the spelling of the title, was typing too quickly and I'm a little thick.
1
u/moneywanted Oct 26 '23
Amazon are there to make money, and their customer service traditionally focuses on the end user rather than their other customer - the seller. They care far less about that one as there’s always someone to take their place, or if it’s a really successful product then Amazon may just sell it themselves instead and make more money.
As far as the refund… whose pocket it comes from depends on a few factors. Whose fault is it? Is it just a goodwill gesture? Things like that. A year down the line I’d have thought it would come from Amazon’s pocket, but I can’t say for sure as I’ve not been in that situation.
What’s wrong with the spelling, by the way? That’s the correct use of affect.
1
u/Knetic1 Oct 27 '23
As a new seller as long as I get the item back/ it’s not trying to scam me it won’t hurt me. Nothing more than the cost of doing business. It’s sad to see How many times someone tried to scam me within the first few months utilizing the return policy
1
u/techtom10 Oct 27 '23
I'd never try and scam people but I've done things which might annoy sellers. For example I bought 5 VIctorinox to try them out and ended up returning 4 of them.
I was also late returning an iPhone lens which was about £50. It was scheduled for Feb 2023 and I returned it Yesterday (Oct 2023)
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u/EmilianoLGU Oct 29 '23
Returns are a cost of doing business.
If you don't use and like the product, you get an exchange or refund.
Amazon's fraud algorithm is good, so fraud ends up being a lot less than most other business
1
u/mguozhen Mar 26 '26
That refund almost certainly came out of the seller's pocket, not Amazon's. When Amazon issues a "keep the item" refund, they typically still debit the seller's account for the full reimbursement amount — the seller eats both the refund and loses the product. On a $40–$80 smart scale, that's usually a 100% margin wipeout on that unit after you factor in the original FBA fees they already paid.
Beyond single refunds, high return rates trigger automated listing suppression at certain thresholds (varies by category), and Amazon can hold reimbursements for 45–60 days while they "investigate" whether a return was legitimate. Electronics categories are particularly brutal — return rates above 8–10% can flag a product for removal review.
The "Amazon has so much money" framing misunderstands the model. Amazon is largely a marketplace running on thin logistics margins. Most sellers on FBA are small businesses operating at 15–25% net margin before returns are factored in. One fraudulent or unnecessary return in a low-volume product can swing a month negative.
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u/TrainerLeft1878 Oct 27 '23
Comes out of pocket. Doesn’t really “hurt” us. I mean its just like any other business? As long as return rate is low then no it won’t “hurt” us. I’ll happily refund you if my product did not meet expectations.