Insights

How to Charge a Restocking Fee for FBM Sellers on Amazon

In today's post, we focus on a common issue faced by FBM (Fulfilled by Merchant) sellers—how to charge a restocking fee when Amazon automatically issues a refund at the first scan of a return. Here’s a breakdown of how to manage this situation.

The Challenge:
Amazon's system automatically refunds customers as soon as a return label is scanned, preventing sellers from charging a restocking fee upfront. While some sellers may be able to apply for a Prepaid Return Exemption, this isn’t available for everyone.

Prepaid Return Exemption:
If you qualify for this exemption, Amazon will stop issuing a return label to customers, which can prevent refunds from happening automatically. For those who think they might qualify, links are provided to help you learn more about eligibility and the application process.
How to Apply for Prepaid Return Exemption: https://sellercentral.amazon.com/help/hub/reference/202072200
Prepaid Return Exemption Requirements: https://sellercentral.amazon.com/help/hub/reference/202072200
The SAFE-T Claim Process:
For most FBM sellers, the SAFE-T claim process will be the only option to charge a restocking fee after receiving a return. Once the returned item is back in your possession, you can file a SAFE-T claim to request reimbursement for the restocking fee.

Here’s an example: In a recent SAFE-T claim, although the seller requested a 25% restocking fee, Amazon awarded 20% of the product’s price after reviewing the claim. While this process can take time, it’s a reliable way to recover losses when returned items aren’t in sellable condition.

Conclusion:
If you don’t qualify for a Prepaid Return Exemption, using the SAFE-T claim process is the best way to charge a restocking fee and protect your bottom line. Make sure to explore the links for more information on the exemption process and check out the video below for a detailed walkthrough.