Amazon Order Canceled or Easy Ship Package Undelivered? Confused about Amazon Seller Refund Policy? You are the right place!
I have personally struggled with this and I see a lot of sellers trying to figure out how much refund will they get on return orders. Will they have to pay for the return shipping? If they are using Amazon Easy Ship, will Amazon refund the commission fee or Shipping fee?
Most of the sellers are not aware of the Amazon Reimbursement Policy, especially in cases when the package is marked as undelivered or rejected by customer.
Just yesterday, I got a query from one of the sellers who is getting too many return orders and was worried about the Amazon Seller Refund Policy for Easy Ship. And this is basically in response to that query that I am writing this down so that all sellers can benefit from it!
So, let’s begin!
Amazon Seller Refund Policy for Order marked Undeliverable
Orders Marked as Undelivered – In cases when Amazon is not able to reach the customer & deliver the order successfully because of incorrect address, delivery attempted on a holiday or after business closing hours, or damaged shipment, the order is marked as ‘undeliverable’.
In all such cases, Amazon will provide a full refund of all charges along with Shipping Fee in case of Easy Ship. GST charges will also be reimbursed.
Amazon Reimbursement Policy for Customer Rejected Orders
Customer Rejected Orders – In case if the customer requests Order Cancellation after order shipment i.e. when the order has already been dispatched, or refuses to accept the shipment upon successful delivery attempt, Amazon marks the order as ‘Rejected’.
In this case, Easy Ship Fee is only partially refunded. Other charges are refunded in full and the GST is also reimbursed.
Partial Refund on Amazon Easy Ship Fee for Customer Rejected Orders
If your no. of rejected orders in a month are 8% of the total Easy Shipped Units of that month, you are not eligible for reimbursement of Easy Ship Fee. Amazon will reimburse the Shipping Fee only for the rejected orders above this threshold of 8% a month. Up to 8% Customer Rejected Orders is considered as the cost of doing business.
Example:
Let say a seller shipped a total of 100 units through Easy Ship. Out of these 12 Orders were marked as ‘Rejected’ and were returned.
Total Shipments: 100
Total Rejected Units: 12
8% of Total Easy Shipped units = 8% of 100 = (8/100)*100 = 8
So, Easy Ship Fee will not be refunded for the first 8 rejected orders.
Remaining Orders eligible for Easy Ship refund = 12 – 8 = 4
So, the seller will be reimbursed for these 4 units.
Now, what if the item returned is damaged?
In such a case, you have to file Safe-T Claim for your products. Read Amazon Safe-T Claim Policy and How to file it.
Last Words:
In case of Easy Ship, the packaging and labelling of the order is the seller’s responsibility. So, make sure that you do it properly as per Amazon’s Easy Ship guidelines. This will help reduce the chances of undelivered order that may arise because of improper packaging or labelling.
However, the rest of the factors are not in your control. So, I would advice to factor in the loss generated by these 8% rejected orders in terms of Easy Ship charges when calculating the profitability of orders. And consider it while calculating your product prices.
Also, make sure to track your shipments and be aware of delays caused in shipment as very often, delayed shipments also result in Order Cancellations or Rejection by Customer.
In case you still have any doubts, do leave a comment below and I will answer it within 48 hours.
Frequently Asked Questions (FAQ)
Yes, You get a full refund of Easy Ship Fee. 
See Amazon Seller Refund Policy for Order marked Undeliverable section above for more details.
Yes and No. Amazon provides a partial refund of Easy Ship Fee in case of customer rejected orders. Only rejected orders above 8% of total easy shipped units of that month are eligible for shipping fee refund. 
See Amazon Seller Refund Policy for Rejected Orders section above for more details and example.
Yes. GST charged of all Fee components are reimbursed.
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My 1st order on amazon was returned by the customer and i was charged by amazon which i understand. But the 2nd order which i got was rejected by customer (delivered attempted), and again i was charged by amazon which i don’t understand. Please let me know if i can waive off these charges or not as my account balance is in negative right now.
Hi,
In general, the Reimbursement for all undelivered shipments and eligible customer rejected shipments in a month are processed within 45 days from last ship date in that month.
Amazon will also notify you through email if there is any such reimbursement.
Details of Reimbursements issued against Undelivered Orders for any given month can be checked by downloading the report here -> https://sellercentral.amazon.in/reports/Undelivered_Order_Reimbursement_Report
You can further contact seller support and confirm if those orders are eligible for reimbursement.
Good Luck!
Hi Sathish,
Details of Reimbursements issued against Undelivered Orders for any given month can be checked by downloading the report here -> https://sellercentral.amazon.in/reports/Undelivered_Order_Reimbursement_Report
Amazon will also notify you through email if there is any such reimbursement.
In general, the Reimbursement for all undelivered shipments and eligible customer rejected shipments in a month are processed within 45 days from last ship date in that month.
How do i know if amazon has refunded the shipping fees for Orders marked as Undeliverable and when will they refund the shipping fee for that particular order?
Amazon refund 8% or 92% out of 100 orders?
Hi Silicon Products,
Amazon will refund the Easy Ship charge for 92% of the orders. However, it is the latter 92% that will be eligible for reimbursement. So, if you sold 100 products then first 8% i.e. the first 8 rejected orders are NOT eligible for reimbursement. If you still get rejected orders after that threshold of 8% is crossed, you will get refund for those orders.
Ex. If you sold 100 orders.. and you get 92 return orders. You don’t get refund for all the 92 rejected orders from Amazon.
Since first 8% is not eligible for refund, you will be reimbursed for only 92-8 = 86 cancelled/rejected orders.
In case you still have any confusion, do let me know.