Overview

Amazon charges a returns processing fee on FBA products that exceed category-specific return rate thresholds, designed to offset the operational costs of handling returns and reduce waste. This fee applies to most product categories, with a separate structure for apparel and shoes. Understanding how this fee works is essential for FBA sellers looking to control costs and optimize their product listings to minimize return rates.

Key Points / What Sellers Need to Know

• Threshold-based charging — The fee only kicks in when a product's return rate exceeds a specific threshold set for its fee category. Products below the threshold are not charged.
• Return rate calculation — A product's return rate is the percentage of units shipped in a given month that are physically returned during that month and the following two calendar months.
• Size and weight determine the fee amount — The per-unit fee is based on the product's size tier and shipping weight, with larger and heavier items incurring higher charges.
• Apparel and shoes are different — These categories are charged a returns processing fee on every returned unit with no threshold applied.
• Low-volume exemption — Products that shipped fewer than 25 units in a month are exempt from the returns processing fee entirely.
• FBA New Selection program waiver — Sellers enrolled in the FBA New Selection program can have the fee waived for up to 20 units per eligible parent ASIN, provided products are received at a fulfillment center within 180 days of the first inventory-received date.

How the Fee Is Calculated

The returns processing fee uses a straightforward calculation based on shipped volume and return rates. Amazon tracks how many units of a product are shipped to customers in a given month, then monitors how many of those units are returned over the next three months (the shipment month plus two additional calendar months). If the return rate exceeds the threshold for that product's fee category, only the units returned above the threshold are charged the fee. For example, if 1,000 units ship in a month and the category threshold is 10%, the first 100 returned units are not charged. If 120 units are returned, only the 20 units above the threshold incur the fee. The charge is applied between the 7th and 15th day of the third month following the original shipment month, giving sellers some lead time before the fee appears on their account.