As the holidays approach, Amazon sellers may notice an influx of traffic due to holiday sales and individuals shopping for their loved ones. Sometimes the gifts an individual chooses may be returned for several reasons. For instance, if someone gifts someone a sweater that doesn’t fit them, that person will most likely return it is not their size. In general, Amazon has a lenient return policy. However, returns can impact how much sellers make during the holiday season. This 2022, Amazon has an extended holiday return window that allows individuals to return items that they purchased up to three months ago. Amazon’s holiday return policy extends to FBA (Fulfilled by Amazon) and FBM (Fulfilled by Merchant) items. With years of experience, our Amazon Seller Advice and Guidance can help you handle Amazon’s holiday return policy and keep you up-to-date with all Amazon’s policies for sellers.
How does Amazon’s holiday return policy affect sellers?
Firstly, Amazon’s holiday return policy affects sellers’ profitability. Sellers overall profitability is decreased due to the cost of return processing and return fraud. Additionally, FBA’s storage fees have increased. This has caused sellers to have issues with maintaining a high net profit margin. Furthermore, sometimes products are returned used and are not able to be resold. This causes stock management issues as well as the extension of returns which is now 90 days. Therefore, this also leads to reputational damage. People avoid buying from a seller whose reputation is negative.
What can sellers do?
To successfully handle holiday returns, sellers should make an effort to reach out to the customer who returned the merchandise to investigate why the customer returned the product. Once they collect this data they may be able to find an underlying issue with their product that could be fixed and prevent future returns. Amazon has strict deadlines for sellers when it comes to fulfilling returns and resolving issues with their customers. To resolve this, sellers should keep track of their return requests. Sellers may neglect one of the most important parts of interacting with customers which is customer service. Customer service can make or break a seller’s reputation and profitability. Sellers must maintain and provide their customers with exceptional service when it comes to returns. Return policies may change or the policies may be confusing for consumers. Sellers should show that they care about their customers by being understanding and helpful. Additionally, sellers should offer accurate descriptions of their products. This will alleviate any misunderstandings about the product which could result in returns. Ultimately, there are various methods that sellers should follow for their Amazon brand to excel this holiday season.
If you are an Amazon seller, don’t hesitate to contact our qualified Amazon Seller Advice and Guidance experts who can help ensure you increase profitability, avoid stock management issues, and avoid reputational damage this holiday season.