For sellers using Amazon’s Fulfilled by Merchant (FBM) model, handling returns can be challenging—especially when items are sent back damaged or incomplete. Fortunately, Amazon provides a way to charge restocking fees in cases where a return is not automatically refunded at first scan by the carrier. This guide explains when and how to charge those fees properly, using Amazon’s built-in tools.
When a return isn’t auto-refunded at the first scan, the seller gets a chance to inspect the item before issuing a refund. In cases where products are damaged, missing parts, or in unsellable condition, sellers may apply a restocking fee of up to 50% of the item’s value.
Step-by-Step: Charging a Restocking Fee
Amazon requires a damage assessment across three categories:
Each category must be rated as:
You must justify the fee with a written explanation, including:
A well-written justification helps prevent negative feedback or A-to-Z Guarantee claims. In the example shown, the seller documented cosmetic damage, missing accessories, and refurbishment costs totaling over $100, which justified a maximum restocking fee.
Upload Visual Evidence
Supporting your claim with photos of the returned product’s condition is critical. These visuals serve as evidence to Amazon and help reduce the risk of buyer disputes.
Once everything is filled out and images are uploaded, click Submit Refund. Amazon will process a partial refund to the buyer, allowing the seller to recover a portion of the item’s value.
Understanding this process helps FBM sellers protect themselves from financial losses due to damaged or incomplete returns.
Watch the video below for a full walkthrough, including visual examples and a detailed breakdown of each step.
When a return isn’t auto-refunded at the first scan, the seller gets a chance to inspect the item before issuing a refund. In cases where products are damaged, missing parts, or in unsellable condition, sellers may apply a restocking fee of up to 50% of the item’s value.
Step-by-Step: Charging a Restocking Fee
- Navigate to Manage Returns in Seller Central.
- Locate the order ID and click Issue Refund.
- Select a restocking fee percentage (up to 50%).
Amazon requires a damage assessment across three categories:
- Item
- Accessories
- Packaging
Each category must be rated as:
- Original condition
- Minor damage
- Severe damage
- Missing
- Materially different
You must justify the fee with a written explanation, including:
- The extent of cosmetic or functional damage
- Any missing components
- The estimated cost to refurbish or replace missing parts
- The resulting drop in resale value
A well-written justification helps prevent negative feedback or A-to-Z Guarantee claims. In the example shown, the seller documented cosmetic damage, missing accessories, and refurbishment costs totaling over $100, which justified a maximum restocking fee.
Upload Visual Evidence
Supporting your claim with photos of the returned product’s condition is critical. These visuals serve as evidence to Amazon and help reduce the risk of buyer disputes.
Once everything is filled out and images are uploaded, click Submit Refund. Amazon will process a partial refund to the buyer, allowing the seller to recover a portion of the item’s value.
Understanding this process helps FBM sellers protect themselves from financial losses due to damaged or incomplete returns.
Watch the video below for a full walkthrough, including visual examples and a detailed breakdown of each step.