Overview

Amazon provides several refund mechanisms that sellers need to understand to manage returns effectively and maintain strong account health. Whether you fulfill orders yourself or use Fulfillment by Amazon, knowing how each refund type works — and when it applies — is essential for protecting your margins and keeping customers satisfied.

Key Points / What Sellers Need to Know

• Seller-issued refunds — When you fulfill orders yourself (FBM), you are responsible for processing refunds directly through Seller Central when a buyer requests one or when a return is received.
• Amazon-issued refunds — For FBA orders, Amazon handles customer service and may issue refunds on your behalf, sometimes before a return is even received by the fulfillment center.
• Returnless refunds — In some cases, sellers can offer a full refund without requiring the buyer to return the item, which can save on return shipping costs for low-value products.
• Partial refunds — Sellers have the option to issue a partial refund rather than a full one, which can be appropriate when an item is returned in a condition different from how it was shipped.
• Restocking fees — Depending on the product category and return reason, sellers may be able to deduct a restocking fee from the refund amount to offset the cost of processing a return.

How Seller-Issued Refunds Work

When you handle your own fulfillment, the refund process begins when a buyer submits a return request through their Amazon account. You can then authorize the return and, once the item is received back, issue the refund through the Orders section in Seller Central. Sellers have the flexibility to issue a full or partial refund depending on the condition of the returned item. Amazon's policy generally requires that refunds be processed within two business days of receiving the returned product. Failing to issue timely refunds can result in Amazon stepping in to refund the buyer automatically and charging the amount to your seller account.

How Amazon-Issued Refunds Work

For orders fulfilled through FBA, Amazon manages the entire returns and refund process on your behalf. When a customer initiates a return, Amazon may issue an immediate refund — even before the product arrives back at the warehouse. If the item is not returned within 45 days, Amazon will typically reimburse you for the refund amount. However, sellers should regularly audit their FBA reimbursement reports to ensure they are not absorbing costs for items that were refunded but never actually returned. Discrepancies can be addressed by opening a case with Seller Support.