Questioning the Logic Behind Amazon's Refund and Refund Commission Policies
Dear Amazon Seller Forum Members,
As sellers, we strive to maintain high standards of customer satisfaction, ensuring that our products meet the descriptions and quality promised. However, the glaring loopholes in Amazon's refund policies are causing significant frustration and financial loss.
Let’s address a critical question: On what basis does Amazon issue refunds to buyers and then charge sellers a refund commission, even when the return is demonstrably unjustified or fraudulent?
Here are a few examples highlighting the flaws in the current system:
Refunds Without Proper Verification: Refunds are processed the moment the product is picked up, without adequately verifying whether the returned product matches the one originally sent. This policy creates a perfect loophole for misuse by fraudulent buyers or mishandling by third-party courier services.
Seller Penalization Through Refund Commission: In cases where sellers apply for safety claims due to wrong product returns, the refunded amount is often incomplete, and the refund commission charged is conveniently overlooked. Why are sellers penalized for issues that lie beyond their control?
Lack of Accountability: The current policies fail to account for instances where the buyer's return reasons are contradictory, vague, or outright illogical. No effort seems to be made to verify the authenticity of buyer claims before processing refunds.
No Clarity in Buyer Feedback: A significant portion of buyer feedback consists of subjective or baseless comments like "Not useful" or "Quality not good." What is the mechanism Amazon employs to validate such claims before charging sellers?
This system not only undermines seller trust but also encourages misuse by fraudulent buyers. Refund commissions are a further insult, essentially punishing sellers for actions outside their control.
Amazon must address these concerns with urgency:
1)Introduce stricter verification processes before refunding buyers, such as mandatory photo or video evidence.
2)Link buyers' accounts to unique identifiers like Aadhar to reduce fraudulent activities.
3)Revise the refund commission policy to ensure sellers are not penalized unfairly for returns that are later proven invalid.
These loopholes are not just frustrating; they are actively discouraging honest sellers who invest time, money, and effort in building their businesses. If Amazon continues to prioritize buyer satisfaction at the expense of seller protection, it risks losing the trust and cooperation of its seller community.
Let’s collectively push for a more balanced and fair approach. Sellers deserve better. Requesting all sellers raise voices for this unfair policy.
Sincerely,
PMS Team
Questioning the Logic Behind Amazon's Refund and Refund Commission Policies
Dear Amazon Seller Forum Members,
As sellers, we strive to maintain high standards of customer satisfaction, ensuring that our products meet the descriptions and quality promised. However, the glaring loopholes in Amazon's refund policies are causing significant frustration and financial loss.
Let’s address a critical question: On what basis does Amazon issue refunds to buyers and then charge sellers a refund commission, even when the return is demonstrably unjustified or fraudulent?
Here are a few examples highlighting the flaws in the current system:
Refunds Without Proper Verification: Refunds are processed the moment the product is picked up, without adequately verifying whether the returned product matches the one originally sent. This policy creates a perfect loophole for misuse by fraudulent buyers or mishandling by third-party courier services.
Seller Penalization Through Refund Commission: In cases where sellers apply for safety claims due to wrong product returns, the refunded amount is often incomplete, and the refund commission charged is conveniently overlooked. Why are sellers penalized for issues that lie beyond their control?
Lack of Accountability: The current policies fail to account for instances where the buyer's return reasons are contradictory, vague, or outright illogical. No effort seems to be made to verify the authenticity of buyer claims before processing refunds.
No Clarity in Buyer Feedback: A significant portion of buyer feedback consists of subjective or baseless comments like "Not useful" or "Quality not good." What is the mechanism Amazon employs to validate such claims before charging sellers?
This system not only undermines seller trust but also encourages misuse by fraudulent buyers. Refund commissions are a further insult, essentially punishing sellers for actions outside their control.
Amazon must address these concerns with urgency:
1)Introduce stricter verification processes before refunding buyers, such as mandatory photo or video evidence.
2)Link buyers' accounts to unique identifiers like Aadhar to reduce fraudulent activities.
3)Revise the refund commission policy to ensure sellers are not penalized unfairly for returns that are later proven invalid.
These loopholes are not just frustrating; they are actively discouraging honest sellers who invest time, money, and effort in building their businesses. If Amazon continues to prioritize buyer satisfaction at the expense of seller protection, it risks losing the trust and cooperation of its seller community.
Let’s collectively push for a more balanced and fair approach. Sellers deserve better. Requesting all sellers raise voices for this unfair policy.
Sincerely,
PMS Team
17 replies
Seller_BAeNeJ1TzfSP7
Do you really think Amazon puts thought into all this? Their concept is very basic! Amazon is just a bridge between a customer and a seller! To draw a sale they have to give the customer the best deal! And 7 day no questions asked return policy is what they have come up with! And to prevent Amazon loss, they tend to blame the seller and take money from the seller irrespective of whether the seller is at fault or not! They charge the seller for this!
They give fake hope for sellers like we have Safe-t claim which is limited and also a gamble! There is no guarantee that you will get your amount! And even if you get that's not the amount you deserve! There are 10 orders of mine(Orders received in the month of September) which Amazon says delivered to the customer! Customer says I didn't receive the delivery. Amazon grants the refund to the customer the very next day of marking the order delivered! But I got only 40% of the settlement amount as per the fair policy(after 50 days)! What is my fault here? Amazon delivered the product, but loss faced = Seller! The same thing has happened this month as well, where 2 of my orders were marked delivered, and then customer says I didn't get the delivery. When I contacted seller support they are like sir we tried to get in touch with the customer, but the customer is misleading the associate, so our investigation is closed.
Amazon expects sellers to invest a lot in Ads, and then get orders, you do not get orders organically. And if you get negative ratings then again you will have to spend even more to get orders!
So the best thing is to finish the inventory and close out Amazon as this platform is not for those sellers who have less money in their accounts.
Seller_1jC6Fhwg1hcGi
YOU ARE RIGHT I HAD ALSO FACED SUCH SITUATION ,ORDER GET DELIVER ,BUT BUYER CL AIM NOT RECEIVED ,AMAZON AUTHORIED REFUND ,THEN AFTER 50 DAYS I RECEIVED ONLY 60 % OF MY AMOUNT OF PRODUCT .THEIR POLICY IS ONLY AGAINST OF SELLER..
Seller_Y6efEWNcykEZk
Dear Amazon Seller Forum Members,
As sellers, we strive to maintain high standards of customer satisfaction, ensuring that our products meet the descriptions and quality promised. However, the glaring loopholes in Amazon's refund policies are causing significant frustration and financial loss.
Let’s address a critical question: On what basis does Amazon issue refunds to buyers and then charge sellers a refund commission, even when the return is demonstrably unjustified or fraudulent?
Here are a few examples highlighting the flaws in the current system:
Refunds Without Proper Verification: Refunds are processed the moment the product is picked up, without adequately verifying whether the returned product matches the one originally sent. This policy creates a perfect loophole for misuse by fraudulent buyers or mishandling by third-party courier services.
Seller Penalization Through Refund Commission: In cases where sellers apply for safety claims due to wrong product returns, the refunded amount is often incomplete, and the refund commission charged is conveniently overlooked. Why are sellers penalized for issues that lie beyond their control?
Lack of Accountability: The current policies fail to account for instances where the buyer's return reasons are contradictory, vague, or outright illogical. No effort seems to be made to verify the authenticity of buyer claims before processing refunds.
No Clarity in Buyer Feedback: A significant portion of buyer feedback consists of subjective or baseless comments like "Not useful" or "Quality not good." What is the mechanism Amazon employs to validate such claims before charging sellers?
This system not only undermines seller trust but also encourages misuse by fraudulent buyers. Refund commissions are a further insult, essentially punishing sellers for actions outside their control.
Amazon must address these concerns with urgency:
1)Introduce stricter verification processes before refunding buyers, such as mandatory photo or video evidence.
2)Link buyers' accounts to unique identifiers like Aadhar to reduce fraudulent activities.
3)Revise the refund commission policy to ensure sellers are not penalized unfairly for returns that are later proven invalid.
These loopholes are not just frustrating; they are actively discouraging honest sellers who invest time, money, and effort in building their businesses. If Amazon continues to prioritize buyer satisfaction at the expense of seller protection, it risks losing the trust and cooperation of its seller community.
Let’s collectively push for a more balanced and fair approach. Sellers deserve better. Requesting all sellers raise voices for this unfair policy.
Sincerely,
Shona's Style Team
Seller_FhYtylmbVKEP1
Agree, these points need to be addressed by Amazon. We need to represent this issue further.
Seller_UxDCryCRKx5l5
We are facing similar issues and are deeply frustrated with Amazon's policies that often seem unfair to sellers. One major problem we’ve noticed is that when customers return the correct product, the pickup personnel or the distribution team at Amazon’s collection points sometimes mishandle, misplace, or even intentionally swap the items. This creates unnecessary losses for us as sellers, but the responsibility always seems to fall back on us rather than being addressed at their end.
Adding to the frustration is the inconsistency in refund amounts. For the exact same product and situation, the refund provided often varies without any clear explanation. It appears to depend on the mood or discretion of the concerned person handling the case, leaving us feeling unsupported and vulnerable to arbitrary decisions. These practices not only harm sellers financially but also damage the trust we place in Amazon to uphold fair and transparent policies. We hope these issues are taken seriously and resolved promptly.
Seller_qeLqqrKZn5ImR
Dear Amazon Seller Forum Members,
It’s disheartening to see the continued silence from Amazon representatives on the critical issue of refund policy loopholes, despite active engagement on other threads. This raises a troubling question: **Is Amazon truly committed to addressing the concerns of its sellers, or is there something deeper at play?
What’s most concerning is the lack of acknowledgment or effort to rectify these glaring issues. **Why is Amazon avoiding this conversation?
When a platform consistently ignores seller concerns, despite multiple escalations and threads like this one, it is only natural for us to question the intent. Is this an oversight, or does Amazon benefit in some way from these loopholes?
While I don’t want to outright accuse Amazon of having internal mechanisms that enable such practices, the persistent silence and inaction suggest a lack of accountability. Sellers are left to speculate whether these policies and their loopholes are deliberately maintained to benefit certain stakeholders at the expense of honest sellers.
This isn't just about monetary losses—it’s about trust. A platform that prides itself on being "customer-obsessed" must also ensure fairness to the very sellers who fuel its marketplace.
**Amazon, it’s time for transparency:**
1. Why are refund claims processed without proper verification of returned goods?
2. What safeguards are in place to prevent misuse of refund policies by buyers or couriers?
3. Why are sellers charged refund commissions even when claims are proven invalid?
4. Most importantly, why is there no active engagement from your team on threads like this, despite numerous seller escalations?
Sellers, we need to stand united in demanding answers. If Amazon continues to ignore these critical issues, we must question whether this platform truly values its sellers or if we’re just seen as expendable.
Amazon, silence is no longer an option. We demand accountability, transparency, and action.
Sincerely,
PMS Team
For this thread , there is no respond from the amazon executives like@Noor_Amazon_ @Adam_Amazon_ Please tag this people too @Sakura_Amazon @Winston_Amazon
Seller_AzoaPFdoGEVqV
Dear PMS.
There’s no point in tagging these community managers. Instead, the better option is to stop selling on Amazon altogether. Most of the returns and fake orders originate from Amazon’s own ATS and their shipping partners. The entire cycle of returns, refunds, safety claims, and refund commissions is just another avenue for Amazon to extract more from sellers.
These community managers are part of Amazon’s system and are unlikely to voice concerns on our behalf. Even if they do, they risk being removed from their positions. They are essentially powerless and forced to operate within Amazon’s framework. The only difference is that they are less exploited compared to sellers, but they too are subject to Amazon’s control.
Seller_i5zkPQdBMRZBh
As someone who has never posted on these forums before, but have been reading months of these forums complaints on this topic, it is very obvious to me that Amazon is wilfully turning a blind eye to this issue, as it pokes hole directly at the basis of Amazon's business model in India. Compared to the US where Ive lived earlier, there is a lot more fraud happening here, and Amazon's India leadership team is at a loss to figure out how to respond to this. Penalise fraud and they will see 10% drop in sales figures at least. Don't penalise and at least 20% of sellers will drop off the platform over time. As long as new sellers keep coming on the platform and spend money on Advertisements and FBA fees etc, they don't care about long term sellers who are still not able to make anything even close to modest profits. What Amazon knows is the fraud buyers are difference between sellers being making small profits vs not; and fraud buyers are the reason why Amazon sales show some growth in light of the quick commerce disruption. See all the changes at Amazon's top leadership and investments into the country over the past 10 years. I was so foolish to even spend 10 minutes responding to their survey recently on Seller experience. I know now nothing will change, as their policy will not change. We will continue to lose money to fraud week after week with denied claims and theft from within ATS.
What does it mean for all of us. Just stop advertising en-mass. That's the only thing that they will understand. If Amazon doesn't care about sellers wallets, why should sellers beef up Amazon's wallets.
I'm calling for all sellers who have been hurt by denied claims and repeated instances of fraud to join the boycott of ads
Seller_qeLqqrKZn5ImR
Dear NeDesigz_N,
Thank you for sharing your perspective and insights. We truly understand your frustration with the challenges faced by sellers on this platform. As newcomers to Amazon, we are also navigating these complexities, but we believe that patience and persistence can make a difference.
While the limitations of the seller support system are apparent, we do appreciate that we at least have this forum to discuss issues openly—something not every platform offers. The seller forum acts as a small passage to convey our grievances to Amazon’s leadership, even if the process feels indirect or slow.
Even if we are threatened with account suspension or blocking, it will not deter us. We will continue to move forward because Amazon is not our only avenue for business. It is not our "mother" feeding us; we have the capability and resources to explore other opportunities, including selling directly to consumers (D2C) through various channels. This platform may be significant, but it is not indispensable.
We agree that the seller support team often feels like a toughened glass between sellers and decision-makers, but we firmly believe that our collective voice can push through, even if it takes time. If nothing changes after persistent efforts, we are prepared to escalate further by seeking an in-person meeting with the right people at Amazon’s head office in Bangalore, India. Through platforms like LinkedIn or direct professional connections, we aim to find a way to communicate with individuals who can effect change.
However, if we find that even these measures are ineffective, we believe it’s essential to highlight the issues at a broader level.Our Indian government is already taking steps to address the shortcomings in e-commerce through initiatives like ONDC. Linking Aadhaar numbers to buyer and seller accounts would indeed bring more accountability and transparency, which would help address fraudulent activities from both ends.
We hope Amazon is attentive to these discussions and takes proactive steps to improve the seller experience. In the meantime, let’s keep raising our voices in this forum and supporting each other to navigate the challenges of this platform.
Kind regards,
**PMS Team**
Seller_UwPynprPq66aR
amazon should stop or atleast reduce refund charges!!!!!
Seller_WMKtohrgzjxYa
Amazon's SAFE-T claim policy is also biased against sellers. The reimbursement amount hardly covers the courier costs and Amazon's own refund commission. The product loss is for sellers to bear.
In our case, they have been denying SAFE-T claim, where the customer returned different item. Even after providing the unboxing video, they keep denying the appeals and now have stopped even responding. This goes against Amazon's own set SAFE-T claim policies.
As far as returns are concerned, the only ones at profit are those customers who return different item, or abuse Amazon's mindless, no questions asked return policy.
Ricardo_Amazon
Hello @Seller_qeLqqrKZn5ImR,
Ricardo from Amazon here.
As someone who has been working on this company for over a decade, I can tell you your comment is one of the most concise and accurate I have ever seen regarding how certain policies benefit buyer's at a seller's expense.
While I promise to forward this message to our Leadership team, implementing the suggestions you provide won't be easy or maybe not even possible.
I appreciate you taking the time to express your discomfort and by reading the sellers who replied to your comment, I know the sentiment is genuine amongst most of our sellers.
