Amazon introduces returnless refunds in Europe

Amazon is bringing its ‘no-return’ solution for sellers using Fulfilment by Amazon (FBA) to Europe. When customers request a refund, they get their money back without having to return the item.

FBA Returnless Resolutions, which has been available on Amazon.com for some time, was launched this week by Amazon in Europe. It concerns its marketplaces in the United Kingdom, Germany, Italy, France and Spain. Sellers can use the programme to save on return shipping, processing and storage costs.

Items up to 75 euros

The solution can be particularly beneficial for sellers of relatively low-priced products. Participating merchants can set their own maximum item price, ranging from 1 to 75 euros. They can apply the programme to their entire Amazon catalogue or select specific Amazon Standard Identification Numbers (ASINs) for the no-return option.

Assessing return requests

Amazon automatically assesses return requests from FBA sellers. In addition to the product price, the company considers the customer’s return history, the product category and the seller’s account status.

‘Seller must be in good standing’

If a return does not meet these criteria, the customer will be required to return the item to an Amazon fulfilment centre as normal.

Returns still count

Merchants using FBA Returnless Resolutions cannot resell the products that customers are allowed to keep. Amazon also does not compensate sellers for the loss of inventory value, either in full or in part. Returns for which customers are allowed to keep the item still count towards a seller’s return rate. However, Amazon does not apply its high return rate fee to these transactions.

Criticism from sellers

The new option has already drawn criticism from sellers. Some question whether the savings on return processing outweigh the loss of products that customers are allowed to keep. There are also concerns about potential abuse, as Amazon determines which individual return requests qualify for a refund without returning the item.

Avoiding returns is a top priority for online merchants due to the high costs involved. Nevertheless, recent research has shown that free returns are on the rise in the DACH region.