Returns are part of selling on Amazon, but they now cost more than they used to. New fees, mandatory prepaid labels and stricter claim windows mean returns deserve a regular place in your routine. Here is how returns work for FBA and seller-fulfilled orders, which fees apply and how to bring your return costs down.
Returns on FBA orders
For FBA orders, Amazon handles in-policy returns for you: customer service, the return label, receiving and inspection. Units that come back sellable go back into your stock. Units that don't are moved to unfulfillable inventory, where you can have them removed or disposed of.
Returns on orders you ship yourself
For seller-fulfilled orders, Amazon still sets the rules and automatically authorizes most returns that fall within its policy. Since February 8, 2026, Amazon issues its prepaid return labels for US seller-fulfilled orders regardless of item value, and the label cost is charged to your account once the buyer ships the item.
You receive and inspect the item and issue the refund. You can set up returnless refunds for low-value items, and Amazon allows restocking fees only in specific situations it defines, such as items returned used or damaged by the customer.
The fees that come with returns
Refund administration fee. When you refund an order, Amazon returns your referral fee minus an administration fee of $5.00 or 20% of the referral fee, whichever is less.
Returns processing fee (FBA). Since June 2024, Amazon charges a per-unit fee on FBA products whose return rate is above the threshold for their category, and only on the returns above that threshold. Products that ship fewer than 25 units in a month are exempt. Apparel and shoes work differently: they pay a returns processing fee on every customer-returned unit. The FBA Returns page in Seller Central shows each product's return rate against its threshold.
The holiday return window
Items bought during the holiday season can be returned until January 31 of the following year. Plan for a wave of returns in January and keep cash and storage space for it.
When a return goes wrong
If Amazon refunded a customer but the item never came back, or came back damaged while in Amazon's hands, you may be owed a reimbursement. These claims must be filed between 60 and 120 days after the refund. Our guide to FBA reimbursements explains how to find and file them, and our reimbursement estimator shows what may be at stake.
How to cut your return costs
Read your return reasons every month and fix the top two. Many avoidable returns come from listings that don't match the product: unclear sizes, missing dimensions, compatibility that isn't spelled out or photos that flatter the item. Add size charts, measurements and real-use photos, and answer common questions in the listing itself.
Check packaging too. Items that arrive damaged come back as returns and bad reviews. For low-priced items you ship yourself, a returnless refund can cost less than paying for return shipping and inspection.
Handling returns on several channels?
CrazyVendor manages returns across Amazon, Walmart and your other channels, and its Recovery Center finds FBA and WFS reimbursement cases.
See how it works: crazyvendor.ioWe have a business relationship with CrazyVendor.
Questions sellers ask
Does Amazon handle returns for FBA orders?
Yes. For FBA orders, Amazon handles in-policy returns, from the return label to receiving and inspecting the item.
What is the returns processing fee?
A per-unit FBA fee. For most categories, Amazon has charged it since June 2024 only on returns above the category's return-rate threshold. Apparel and shoes pay it on every returned unit.
What is a returnless refund?
A refund where the customer keeps the item. It makes sense when return shipping and handling would cost more than the item is worth.
Sources: Amazon seller return policy and fee updates of 2024 to 2026, checked November 2026. Policies change, so confirm current rules in Seller Central.