Amazon Sellers to Face New Return Shipping Fees in 2023
Amazon will start charging sellers with carrier shipping corrections charges on seller-fulfilled orders (Amazon FBM) caused by incorrect return label information.
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What you need to know: Shipping corrections charges are additional fees carriers charge after a shipping label is purchased and when dimensions or weight do not match the values provided.
When sellers fulfill orders themselves (Amazon FBM), instead of using the Amazon network of fulfillment centers (Amazon FBA), they can purchase discounted shipping labels for customer returns, providing a similar returns experience as if the customer purchased the product from a seller that shipping from one of Amazon’s warehouses.
Why it matters: Amazon seems to be tweaking its shipping policies, aligning them more with policies from major parcel carriers such as UPS and FedEx. One of the most significant changes recently was the introduction of a holiday peak season surcharge in 2022.
What will change: Amazon has been absorbing these shipping correction fees on behalf of sellers, but starting on January 14, 2023, seller accounts will be charged if:
- The dimensions, weight, or both, of the product returned, are incorrect: If the product returned by the customer has physical attributes that do not match a seller’s product listing or outbound shipping, sellers will now be charged for the difference when the carrier adjusts the costs.
- The return address is incorrect or invalid: If the return address is undeliverable, the carrier will charge an $18 fee for every package that cannot be delivered to the return address. Amazon reminds sellers that their return address must be in the same country as the store they are selling in, and that address must be able to accept return packages.
What this means: Sellers will need to confirm the dimensions and weights of products (including packaging) and check that their returns address(es) are correct. The latter is especially important if selling on multiple Amazon stores (countries) and where sellers may use a fulfillment service.
What else is important: While rare, if a seller purchases a return shipping label, but then the return shipment is actually less expensive, Amazon says it will credit the seller’s account with the difference (overpayment).
Where to get more information: To learn more about this policy change, visit Shipping correction charges for seller-fulfilled returns on Amazon’s website. The return address(es) can be updated in your selling account’s Return Settings. Note: links may require a valid Amazon Seller Account to access.
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Richard is co-founder of eSeller365. He has over 17 years of experience on eBay which includes tens of thousands of sales to buyers in over 100 countries and even has experience with eBay’s VeRO program enforcing intellectual property rights for a former employer. And for about two years Richard sold products on Amazon using Amazon FBA in the US.
To “relax” from the daily business grind, for a few weekends a year, he also works for IMSA as a professional race official.