Overview

In mid‑2024 Amazon introduced a per‑unit surcharge that applies to any FBA listing whose return rate stays above the average for its product category. The extra charge is added to each returned unit, directly increasing the cost of high‑return items. Sellers who rely on thin margins need to monitor return percentages closely, or the surcharge can quickly erode profitability.

Key Points

• Surcharge trigger — When an ASIN’s return percentage exceeds the category benchmark for a sustained period, Amazon automatically applies a fee to every returned unit of that product. For example, a kitchen gadget with a 12 % return rate in a category where the norm is 7 % will be flagged.
• Category‑specific thresholds — Each product category has its own historical return baseline, meaning a 10 % return rate might be acceptable for electronics but penalized in apparel where the average is 4 %. Sellers must therefore benchmark each line against its own category, not against a universal standard.
• ASIN‑level assessment — The surcharge is calculated per listing, not per seller account. A single under‑performing SKU cannot be offset by other high‑performing items; the fee appears only on the flagged ASIN’s returns.
• Broad marketplace coverage — Amazon has rolled the policy out to virtually all categories that use FBA, from toys and home goods to health and personal care, making the surcharge relevant to the majority of third‑party sellers.
• Material cost impact — Although Amazon has not disclosed the exact dollar amount, sellers report that the per‑unit fee can consume 5 % to 15 % of gross profit on affected items, depending on the product’s price point and margin structure.

How the Returns Processing Fee Works

1. Continuous return‑rate monitoring — Amazon’s system tracks the return percentage of every ASIN in real time and compares it to the historical average for that category. If a product’s rate remains above the benchmark for a defined window—typically 30 days—the system flags the SKU for the surcharge.
2. Fee attachment to each return — Once flagged, Amazon adds a fixed per‑unit charge to every subsequent return of that ASIN. The charge sits on top of standard fulfillment fees, creating a separate line item that appears on the seller’s monthly statement. For instance, a flagged beauty product might incur an additional $0.75 per returned unit.