How to Lower your Return Rates on Amazon

Selling on Amazon is tough. The competition is ruthless so you have to innovate constantly to stay ahead.

Unlike a physical store, your job doesn’t end with a sale. Product returns can be a nightmare for any Amazon seller, harming your credibility and eating into your profits. 

Customers might return products for many reasons. Some returns are inevitable, but there are effective ways to lower your return rate.

These will help your margin plus avoid the ongoing threat of Amazon suspending your listing because of a poor customer experience.

We asked Seller Candy to do a deep dive into this simple but complex area. Here are some straightforward tips to help you avoid the downward spiral of high returns and account suspension.

How Does Amazon Handle FBA Returns? 

Amazon gives customers a 30-day window to request refunds for most items. But, there are exceptions. Baby products can be returned within 90 days, while electronics only have a 14-day return period.

If a customer wants to return something, they just need to tell Amazon’s customer service within the allowed time. Amazon then sends a prepaid shipping label, or they might direct the customer to drop off the item. 

For less expensive items, Amazon often refunds the customer immediately. However, the customer gets charged again if the returned item isn’t scanned at an Amazon warehouse within 30 days. The same goes for replacements—Amazon sends a new one right away but will charge if the original isn’t returned.

Additionally, from the seller’s perspective, Amazon will reimburse the seller if an item isn’t returned within 45 days after a return is initiated.

What Happens Next?

Once Amazon gets the item back, they check it. Well, kind of…

There is no QA Returns area within Amazon. No one is taking time to open every single return to check it before deciding to restock it or mark it unsellable. Their staff are faced with mountains of returns at the beginning of every shift so decisions are based on the outside condition of the packaging.

Sure, occasionally they may open one but consider this. How come people are sending back dirty diapers in perfect packaging that find their way back to another Amazon customer? What about the court cases Amazon has instigated against mini cartels of Amazon Buyers who send back products filled with sand etc in perfect packaging and resell the products? This is big business for some.

It’s tough, but sometimes even if the damage is the customer’s fault, you have to accept the refund Amazon gives them. It’s Amazon sandpit and their rules. If you don’t like it, go play somewhere else.

If the item is damaged or deemed unsellable, Amazon provides several options:

For Fulfillment by Amazon (FBA) Sellers

If the damage is deemed to be customer-inflicted, the item is not automatically reimbursable and may be tagged as ‘customer damaged’ at the fulfillment center. In such cases, the item is considered unfulfillable and the seller has the option to create a removal order for return or disposal. Amazon charges a small fee for both disposal and return. Sellers are advised to request a reimbursement if a removal order arrives damaged, though success may vary.

For Fulfillment by Merchant (FBM) Sellers

The seller must handle the return directly. If the item is damaged, the seller will need to decide whether to refund, repair, or resell the item based on the condition.

Amazon Renewed

Amazon offers a refurbishment process for returned products that aren’t in a condition to be sold as new but can be restored to full functionality. This involves inspecting, testing, repairing, and cleaning the item, then certifying it for resale under Amazon’s Renewed program. Sellers can choose to participate in this program, which allows their eligible returned items to be refurbished and resold as certified refurbished products.

If a seller opts out, they can adjust their FBA settings to have unsellable returned items sent back to them instead of being refurbished. This allows sellers to control their returned inventory, deciding whether to handle refurbishment themselves, resell through other channels, or take other actions that align with their business strategy.

Why Do Returns Happen?

Amazon’s return policy covers many reasons:

Faulty or defective items.

Damage during shipping.

Items that don’t match their description (wrong size, color, etc.).

Poor quality compared to the description.

Late delivery.

Customers changing their mind.

Products not meeting customer expectations.

Understanding the ins and outs of Amazon’s return policy is crucial. It helps you know what to expect and how to handle returns smartly. 

What is an Acceptable Amazon Return Rate?

Wondering what a good return rate looks like on Amazon? It generally falls between 5% to 15% for most product categories. For items like jewelry and clothing, it can be higher due to personal preferences playing a big role in returns.

If your return rate spikes above the norm for a product, Amazon will flag this to you. Ignore their warning and you could face account suspension.

Here are the steps to check your return rate:

Log into your Amazon Seller Central account.

Click on the “Reports” tab, then choose “Fulfillment.”

Select “Customer Concessions” followed by “FBA Customer Returns.”

Pick the timeframe you’re interested in.

Hit “Generate Report.”

The report not only shows your overall return rate but also highlights problematic products. This is super useful for pinpointing where you can make improvements to reduce returns.

Now that you know how returns work and why they happen, let’s dive into how you can prevent them.

8 Strategies to Lower Return Rates on Amazon

You can’t always stop a customer from changing their mind, no matter how well you describe your product. “Buyer’s remorse” is a real thing—sometimes people buy on impulse and later decide they can’t afford it, or they find something better elsewhere.

But if you often hear customers say things like “it’s bigger/smaller than I thought” or “it’s not the right color,” then you need to step up. This means you’re not setting clear expectations at the time of purchase, and that’s on you. Good news? You can fix this.

While we can’t eliminate returns entirely, we can definitely show you how to reduce them.

1. Craft a Clear Product Title

Got a misleading product title? That’s a surefire way to spike your return rates. Customers expect what they see in the title, and if the product doesn’t match up, they’ll send it back. And it’s not just returns you’ll rack up—expect some harsh reviews, too.

Never trick your customers with a misleading title. Sure, you might snag a few extra sales initially, but those are likely to be followed by returns and complaints. Want to keep your customers happy and reduce returns? Start with an honest, clear product title. It’s simple: what they read is what they should get.

2. Write a Detailed Product Description

Just like a precise product title, a detailed description helps customers know exactly what they’re buying. It should cover everything from what it’s made of to how it’s used. Don’t just list the features; dive into them with at least five bullet points that highlight the key benefits—make it super easy for customers to see why your product rocks.

What about size? Make sure to include precise dimensions to prevent those frustrating returns because something was too big or too small. And colors—do you offer choices? Be crystal clear about what colors they can pick from, and if it’s a surprise, say so! This way, when the package arrives, it’s exactly what they anticipated.

3. Use 360-Degree Product Photos

A picture is worth a thousand words, right? On Amazon, your product photo is the first thing potential buyers see. It’s your chance to make a strong first impression. Why are great photos crucial to reducing returns?

Think about it. In a physical store, customers can touch and see products up close. Online, they can’t. That’s where your photos come in. You need to fill that gap with clear, detailed images.

A 360-degree view lets customers see every angle of the product. This reduces surprises and returns because they know exactly what they’re getting. Make sure your photos capture all the important details. 

4. Leverage Product Videos

Videos are powerful tools for online selling. Since you can’t pitch your product in person, let a video do the talking. A well-made product video helps customers understand what you’re selling. It makes the decision-making process easier by showing your product in action.

Think of a video as a combo of your best photos and a killer product description, all rolled into one engaging visual. It bridges the gap for online shoppers who miss out on the sensory experience of a physical store.

Remember, Amazon allows videos and other enhanced content only if you’re a registered brand. So, if you have that status, make full use of it to reduce returns.

5. Focus on Excellent Packaging

Think the shopping experience ends when a customer clicks “buy”? Think again! Great packaging can really boost your sales. It’s not just about packing it right; it’s about making sure you’re sending out the correct item. Always double-check your orders to ensure customers get exactly what they ordered.

6. Prioritize On-Time Shipping and Delivery

Customers often buy for specific occasions, like birthdays. They can’t afford to wait. As soon as you get an order, ship it out promptly. Delays aren’t always under your control, but you can always strive to dispatch quickly. A late delivery might lead to a return—a mark against your seller record you’d rather avoid.

For FBA sellers, Amazon handles the shipping, but you must keep your inventory in check. Stay on top of what you have to ensure there are no hitches when Amazon fulfills an order.

7. Offer Fast Customer Support

Amazon’s return policies are vet customer-friendly, which sometimes means you, as a seller, have to accept returns. But each return is also a chance to learn and improve. It’s crucial to address customer issues quickly and give them a way to share their concerns.

Responding promptly can ease a customer’s worries and boost their trust in your brand. When customers have a good experience, they’re more likely to come back and less likely to return items.

8. Harness Feedback and Customer Reviews

Customer reviews are gold for improving your products. Always pay close attention to what buyers are saying. If a product gets returned, dig into the reasons why and aim to fix those issues to cut down on future returns.

It’s also smart to reach out to customers directly. If someone initiates a refund, contact them to learn what went wrong and how you can avoid similar issues going forward.

Open and honest communication can prevent negative feedback. 

Conclusion

Returns are inevitable for Amazon sellers, but they don’t have to be a major concern. By being thorough and clear in your product listings, you can minimize unnecessary returns and preserve your reputation. 

You should monitor your return rates at least weekly. It’s important to identify and address any gaps in your service to improve the situation ASAP. If you would like some help working through all of this, make sure you add Seller Candy to your shortlist of suppliers.

We recommend you reach out to them for a complimentary review of your returns to start your deep dive into this key component of your Amazon business.

As always, ask us anything. If we don’t know the answer, we’ll know someone who does!