Amazon Withholding Refund Commission on Cancelled Returns — Serious Reimbursement Flaw
Hi everyone,
I wanted to bring attention to a major issue I’ve encountered with Amazon’s reimbursement process, which I believe may be affecting many FBA sellers without them realising.
Here’s what happened:
A customer requested a return for one of my products.
Amazon immediately deducted £38.77 from my account.
The customer cancelled the return and decided to keep the item.
Amazon later reimbursed me only £29.98, citing the standard formula of "unit value minus unit fees."
This left me £8.79 out of pocket, even though the item was never returned, no shipping or handling took place, and no actual refund-related services were incurred.
Support continues to respond with pre-written policy scripts referencing FBA reimbursement formulas for returned, lost, or damaged inventory. But this isn’t applicable — the customer kept the product, and Amazon still withheld a portion of the funds as if a return had occurred.
This raises serious questions:
Why are sellers being charged refund commission fees or deductions when the customer hasn’t returned the product?
How can Amazon justify applying return handling fees when no return actually happened?
How many sellers are unknowingly losing money on cancelled returns that are treated as completed?
If this has happened to me, it’s very likely happening to others on a large scale. The system clearly needs to be corrected so that full reimbursements are automatically issued in cases where the customer keeps the product and no Amazon services (return shipping, processing, restocking, etc.) are actually used.
Thanks
Amazon Withholding Refund Commission on Cancelled Returns — Serious Reimbursement Flaw
Hi everyone,
I wanted to bring attention to a major issue I’ve encountered with Amazon’s reimbursement process, which I believe may be affecting many FBA sellers without them realising.
Here’s what happened:
A customer requested a return for one of my products.
Amazon immediately deducted £38.77 from my account.
The customer cancelled the return and decided to keep the item.
Amazon later reimbursed me only £29.98, citing the standard formula of "unit value minus unit fees."
This left me £8.79 out of pocket, even though the item was never returned, no shipping or handling took place, and no actual refund-related services were incurred.
Support continues to respond with pre-written policy scripts referencing FBA reimbursement formulas for returned, lost, or damaged inventory. But this isn’t applicable — the customer kept the product, and Amazon still withheld a portion of the funds as if a return had occurred.
This raises serious questions:
Why are sellers being charged refund commission fees or deductions when the customer hasn’t returned the product?
How can Amazon justify applying return handling fees when no return actually happened?
How many sellers are unknowingly losing money on cancelled returns that are treated as completed?
If this has happened to me, it’s very likely happening to others on a large scale. The system clearly needs to be corrected so that full reimbursements are automatically issued in cases where the customer keeps the product and no Amazon services (return shipping, processing, restocking, etc.) are actually used.
Thanks