[AMZ] Updates to the Return Insights dashboard and Returns Processing Fee reminder

[papy]

Updates to the Return Insights dashboard and Returns Processing Fee reminder

by News_Amazon
5 hours ago

On June 1, 2024, the updated returns processing fee will go into effect for products with high return-rates (except apparel and shoes). This was announced as part of the 2024 US fee changes. Fee charges will occur after the close of each three-month period. For example, for returns of units shipped in June, the fee charge will be in September.

To help you better understand your returns and return rates, and identify actions you can take to limit your risk of incurring returns processing fees, we’ve made improvements to the Return Insights dashboard on the FBA Returns page.

The Return Insights dashboard will now include the following insights:

• Number of returned units and return rate percentages used to calculate the fee
• Minimum return rate thresholds above which fees are charged
• Number of returned units above the thresholdfor which fees are charged

To access the Return Insights dashboard, go to the FBA Returns page.

The updated returns processing fee looks at product returns across a three-month period of time starting with the month the product shipped and ending two calendar months later. For example, for products shipped in June, returns will be tracked through June, July and August. The fee will only be charged if the total number of returns for the products shipped in that month exceeds the threshold set for the specific product’s fee category, which are now published on the Returns processing fee page. If the returns threshold is exceeded, the returns fee will apply to each returned unit above the threshold.

For products that ship less than 25 units in a month, the updated returns processing fee is not applied for that month. Additionally, for products enrolled in the New Selection Program, we will waive the fee for the first 20 returned units that exceed the return rate threshold.

For detailed information on fee structure and rates, return rates calculation, thresholds, and exemptions, go to 2024 returns processing fee changes.

[Jenga244]

This is just for FBA and not FBM, correct?

[papy]

As far as I know–yes, just FBA. Don’t give them ideas!

[maintak]

I’m still waiting for an answer to this question but I don’t really expect one until the fees go into effect.

[papy]

@maintak

Therefore a sale in June is held against sales in June, July, and August.

All orders of an ASIN sold in June would be tracked for return through August. After August, that ASIN’s returns from June orders won’t be counted against you for this fee. But it’s only looking at June items shipped and returned through August; July’s items shipped would be tracked for returns through September.

And it seems that Amazon is simply comparing your individual per-ASIN product purchase month+2 return rate to their own category-specific thresholds…unless you ship fewer than 25 of that product in that month.

@papy

The updated returns processing fee looks at product returns across a three-month period of time starting with the month the product shipped and ending two calendar months later. For example, for products shipped in June, returns will be tracked through June, July and August. The fee will only be charged if the total number of returns for the products shipped in that month exceeds the threshold set for the specific product’s fee category, which are now published on the Returns processing fee page.

@maintak unless I’m misunderstanding your question?

[Tandi]

Amazon is like the bully that tells you to get up and then kicks you again… Bad enough FBA customers can return items for any reason they choose or even flat out lie and now they want to charge us for “allowing them” to return it as well.

I wonder how this one will play out for the holiday season…

[maintak]

Is Amazon tracking individual order specific returns? Or just comparing the number of sales in a month against number of returns over the following 3 months? If Amazon is tracking the number of returns over 3 months and comparing it to the returns from a single month, than each return can count against multiple months.

[Jenga244]

Don’t give them any ideas….think of how many more bots they could purchase if they did that for FBM.

[Tandi]

@maintak

returns from a single month

The wording sounds strange but I think it means it will be charged after the 3 months for each month you go over the threshold. Units returned / sold will be charged when you break the category threshold per month. That’s how I am reading it.

[papy]

@maintak

If Amazon is tracking the number of returns over 3 months and comparing it to the returns from a single month, than each return can count against multiple months.

They are tracking items shipped to Buyers in June (even if ordered before June) for returns of those June-shipped items in June, July, and August, to see if your June-shipped item return rate exceeds the category-specific return rate and therefore warrants a June Return Processing Fee charged between the 7th and 15th of August.

For a particular month’s returns, the return processing fee charge will be made between the 7th to 15th day of the third subsequent month.

They are tracking by ship-month. June-shipped items can only count against June’s return rate, if returned in June, July or August…unless Amazon snafus this, too.

June-shipped and July-returned only counts against June, but July-shipped and July-returned counts against July.

[papy]

@papy

category-specific thresholds

The range of category-specific return rate thresholds is from

• a high of 12.8% (Backpacks, Handbags, and Luggage), to
• a low of 2.9% (Grocery and Gourmet).

Now is the time to verify that your ASINs are in the right categories.

[Dogtamer]

@papy

They are tracking by ship-month. June-shipped items can only count against June’s return rate, if returned in June, July or August…unless Amazon snafus this, too.

June-shipped and July-returned only counts against June, but July-shipped and July-returned counts against July.

If you click the embedded “Details” link for any given ASIN appearing on the latest revamp of the FBA Returns Dashboard, you’ll probably see this notification in the “Item Details” ‘pop-in frame,’ as is similarly expressed on the SHC page you’ve linked upthread:

A product’s mapped return rate is the percent of the product’s shipped units in a given month that are returned by customers over that month and the subsequent two calendar months. This applies only to physically returned products

I remain generally in agreement with the assessments of you & our friend @Tandi upthread - but I also remain trepid of this coming to pass:

@papy

…
unless Amazon snafus this, too.
…

Why am I trepid? Because I can already see mis-categorization of ASINs - solely by this Dashboard - to improper Fee Categories (a phenomenon which isn’t new, as our friend @Sundance has been known to point out over the last few years).

[primetime]

Here is their explanation:

1,000 units of a product were shipped to customers in June. In June, July, and August, 120 of the 1,000 units shipped were returned. The returns threshold for this example product category is 10%*. As a result, returns that exceed 100 units (10% of the 1,000 shipped) during the shipment month and subsequent two months will incur returns processing fee. In this case 120 units were returned, so 20 units would be charged the returns processing fee. The fee will be charged between September 7 to 15.