Everyone knows how customer-focused Amazon’s business strategy is, and although sellers are technically customers as well, we tend to get the short end of the stick. Amazon recently officially made FBA Returnless Refunds an “opt-in” program. Some sellers are concerned that this may be optional now – but could easily become a requirement in the future.
On the flip side, for items with low manufacturing costs, footing the bill for return shipping can quickly eat away at your profit margins. Plus, some products—like personal care items—simply can’t be returned for hygienic reasons. In those situations, offering a returnless refund not only helps maintain customer satisfaction but also provides a practical solution for those who may have received a defective or incorrect item.
What are Returnless Resolutions on Amazon?
Returnless resolutions involve allowing a customer to keep the product they’re unhappy with, and still receive a refund. In certain cases, this option makes sense, for example if the cost of return shipping is greater than the cost of the actual item. However, in most cases, a returnless refund is very appealing to customers, but can hurt a seller's bottom line.
It’s not a new concept for Amazon to provide a returnless resolution—what’s new is allowing sellers to opt-in to this program officially, and some experts speculate that we can expect this to become mandatory eventually.
Enabling Returnless Resolutions on Amazon:
To set up returnless resolutions for your Amazon customers, follow these instructions:
- Go to Settings in Seller Central and click Return settings.
- Click the Resolutions tab.
- Click Create a returnless resolution rule.
- Create a returnless resolution rule name and set your returnless resolution rules.
- Enter the price range and click Save.
Sellers can also exclude certain products from the returnless resolution rule. To remove offers from the rule, use the returnless resolution template and add the SKUs you wish to exclude.
When Should Amazon Sellers Offer Returnless Resolutions?
Depending on your product type, cost, and shipping fees, it might make sense to offer returnless refunds for your Amazon customers. In situations where the return shipping cost is greater than the cost of the item, offering to let the customer keep the item and get a refund is often the best-case scenario.
If you're a client looking for more information, contact your account team! If you’re interested in learning more about how Blue Wheel can aid in your brand efforts in online marketplaces, schedule a consultation with our team, we would love to hear from you.