Refunds out of control on Amazon
Hello Amazon seller,
I’ve been selling on Amazon for the past 20 years, but each year, the customer return rate keeps increasing, and it’s reached a point where I’m considering closing my business on the platform. I sell a line of fun, high-quality toy products, which are accurately advertised with great images and precise descriptions. Despite all my efforts, the return rates have become unmanageable.
Approximately 95% of these returns are unjustified, with customers often providing false reasons just to receive a free return label. I operate on slim profit margins, typically ranging from $0.50 to $2 per item, and every tenth sale results in a return. Each return costs me $10 to $15 in postage alone, which means I need to sell an additional 10 items just to offset the loss from a single return. This cycle of constantly needing to compensate for returns makes it very challenging to sustain profitability on Amazon.
Interestingly, I sell the exact same product line on five other platforms, and the return rate is much lower there. However, these platforms don’t generate as much traffic or sales as Amazon, putting me in a tough position. I’ve tried numerous strategies—offering free gifts, improving product listings, and more—but nothing has made a lasting impact. Unfortunately, “free returnless returns” isn’t a viable solution for me, as it only seems to encourage more frequent returns without accountability.
The product line I sell is well-reviewed and performs excellently on other platforms. This issue seems to be specific to Amazon, where customers seem to lack accountability when making purchases. At one time selling on Amazon returns was rare and maybe 1 in 200 orders, Now the same product line is 25 in 200 orders. Mind you we sell 1500 items and no matter what item we sell the rate is around the same. This shows me it is the customer behavior more than anything. It seems that customers dont take ordering serious, Many times I send out and just days in transit they decide to cancel the order? And then of course I have to take a total loss for it each and every time. Amazon has had no back of mine in this issues and half the times I file a safe t claim that is fraction of the loss and time consuming. It seems impossible to sell on this site and keep cost low and earn a honest living. If I raise my prices customers will not order and I am flagges for overcharging..lol I cant win. I am flagged for overcharging meanwhile I am making .25 cents on the order..lol
If anyone has suggestions or has found effective ways to manage high return rates on Amazon, I’d greatly appreciate any advice. I know other sellers are facing similar struggles, and any guidance at this point would be helpful.
Thank you!
Refunds out of control on Amazon
Hello Amazon seller,
I’ve been selling on Amazon for the past 20 years, but each year, the customer return rate keeps increasing, and it’s reached a point where I’m considering closing my business on the platform. I sell a line of fun, high-quality toy products, which are accurately advertised with great images and precise descriptions. Despite all my efforts, the return rates have become unmanageable.
Approximately 95% of these returns are unjustified, with customers often providing false reasons just to receive a free return label. I operate on slim profit margins, typically ranging from $0.50 to $2 per item, and every tenth sale results in a return. Each return costs me $10 to $15 in postage alone, which means I need to sell an additional 10 items just to offset the loss from a single return. This cycle of constantly needing to compensate for returns makes it very challenging to sustain profitability on Amazon.
Interestingly, I sell the exact same product line on five other platforms, and the return rate is much lower there. However, these platforms don’t generate as much traffic or sales as Amazon, putting me in a tough position. I’ve tried numerous strategies—offering free gifts, improving product listings, and more—but nothing has made a lasting impact. Unfortunately, “free returnless returns” isn’t a viable solution for me, as it only seems to encourage more frequent returns without accountability.
The product line I sell is well-reviewed and performs excellently on other platforms. This issue seems to be specific to Amazon, where customers seem to lack accountability when making purchases. At one time selling on Amazon returns was rare and maybe 1 in 200 orders, Now the same product line is 25 in 200 orders. Mind you we sell 1500 items and no matter what item we sell the rate is around the same. This shows me it is the customer behavior more than anything. It seems that customers dont take ordering serious, Many times I send out and just days in transit they decide to cancel the order? And then of course I have to take a total loss for it each and every time. Amazon has had no back of mine in this issues and half the times I file a safe t claim that is fraction of the loss and time consuming. It seems impossible to sell on this site and keep cost low and earn a honest living. If I raise my prices customers will not order and I am flagges for overcharging..lol I cant win. I am flagged for overcharging meanwhile I am making .25 cents on the order..lol
If anyone has suggestions or has found effective ways to manage high return rates on Amazon, I’d greatly appreciate any advice. I know other sellers are facing similar struggles, and any guidance at this point would be helpful.
Thank you!
1 Antwort
Joey_Amazon
Hello @Seller_RuU6KjDkNAON1,
Thank you for participating here at the forums and sharing your experience regarding returns/refunds here at Amazon.
With out focusing on actual orders its hard to tell however the one advise I would have is to check voice of the costumer and reasons on the returns. Perhaps there is something that could be added to your product detail page to prevent some of this returns.
Thanks,
Joey