Amazon will reimburse the following fees inclusive of taxes for all undelivered FBA and Easy Ship units, and the customer rejected units above 8% of FBA shipped units and above 8% of Easy Ship shipped units in a month:

  • 'Easy Ship shipping fee' for Easy Ship order.
  • 'FBA Weight Handling’ and ‘Pick and Pack’ fees for FBA orders.

With this policy, 100% of undelivered units and customer rejected units above 8% of shipped units in a month are eligible for fee reimbursement. Itemized details for all undelivered and customer rejected orders that are returned to the seller or FC and the corresponding reimbursements issued against such orders can be viewed in Undelivered and Rejected Order Reimbursements Reports.

Important:
  • Effective May 1, 2019, the methodology and timelines to determine the eligibility of orders for fee reimbursements will be revised. As per the revised methodology, the eligibility of customer rejected orders exceeding the 8% threshold will be determined based on ‘ship day’ of the order rather than ‘returned to seller’ date in the earlier method.
  • Reimbursement for all undelivered shipments and the eligible customer rejected shipments in a month will be processed within 45 days from the last ship date and the same will be added to the disbursable balance of the Seller Central account for the current payment settlement cycle.
  • The sellers will receive fee reimbursements for this policy every month.
  • Sellers can find such reimbursements (if any payable) under Payments > Reports section in the Seller Central account, as a single entry, with the description Non-subscription fee adjustment. The amount towards such reimbursement will be added to the disbursable balance of the Seller Central account for the current payment settlement cycle.

Refer the revised schedule of reimbursement processing effective May 1, 2019 onwards:

Order ship dateReimbursement Processing TimelinesUndelivered and Rejected Order Reimbursements ReportsExample
First to last day of the monthWithin 45 days from last day of the corresponding monthA notification will be sent to the registered email address with the report.Order shipped by seller/FC between April, 1-30 will be reimbursed by June 15, and the reimbursement report will be available by June 20.

Undelivered and customer rejected order reimbursements reports

The Undelivered and Rejected Order Reimbursements Report provides itemized details for all Amazon Fulfilled Orders which have been returned to the FC/seller as undelivered/customer rejected, and the corresponding reimbursements issued against such orders in accordance with the reimbursement policy for undelivered and the customer rejected shipments. The report will be sent separately to the registered email address of Easy Ship and FBA sellers. 

Frequently Asked Questions:

What is covered under this policy?

  • Units shipped using either Easy Ship or FBA.
  • Units which are marked customer rejected (through AMZ website, customer support or upon delivery attempt) and are above 8% of FBA shipped units and 8% of Easy Ship shipped units in a month. For example:

Illustration:

MonthMay 2018June 2018July 2018
Total units shipped10050200
Customer rejected units10419
Total customer rejected units as % total shipped units10%8%9.5%
8% of the shipped units8416
Customer rejected units eligible for reimbursement = Customer rejected units which are above 8% of shipped units for that month203

What is not covered under this policy?

This policy does not cover units that are customer rejects at or below 8% of total shipped units in FBA or Easy Ship.

When will I receive the reimbursement?

As per the revised methodology to determine the eligibility criteria effective May 1, 2019, sellers will receive the reimbursement for the orders shipped in a month within 45 days from end of the shipped month. For example, the reimbursement for the orders shipped in the month of April 2019 will be processed by June 15, 2019.

Which fees components are eligible for reimbursement?

Sellers will be reimbursed for the components of the following fee (inclusive of GST):

  • 'Easy Ship shipping fee' for Easy Ship order.
  • 'FBA Weight Handling’ and ‘Pick and Pack’ fees for FBA orders.

Will I receive intimation for the reimbursement for undelivered and/or rejected shipments?

The intimation for reimbursement is sent on the registered email id. In case there is a change in the email ID, update the email ID details on Seller Central and the email intimation will be sent to the new email address from the next reimbursement cycle. Sellers can update the email address by going to: Seller Central >Settings > Account Info.

What is the difference between undeliverable and customer reject?

Undeliverable is due to Amazon unable to reach customers like delivery attempted, recipient not in, address the issue, damaged shipment, delivery attempted on a holiday, or after business closing hours. Amazon will reimburse the fulfillment fee for all undeliverable units.

Customer reject is a case where Amazon is able to reach the customer but the customer creates a web rejects or refuses to accept the shipment upon delivery. Amazon will reimburse the fulfillment fee for rejected units above 8% of the shipped units for a month.

How will I find out if an order is undelivered or reject?

The Undelivered and Rejected Order Reimbursements Report shared monthly provides itemized details for all Amazon Fulfilled Orders/ Easy Ship orders which have been returned to the FC/ seller as undelivered and customer reject. Sellers can download this report here. The report will have a separate sheet for FBA and Easy Ship.

How do I compute the Customer Rejected unit where fees will be reimbursed?

To evaluate the Customer Rejected unit where we will reimburse fulfillment fees, the below formula is used.

For units shipped using FBA, Customer Rejected units where fees will be reimbursed = ((Number of customers rejected units for the shipped units in a month / Number of units shipped in the month) – 8%) * Number of units shipped in the same month

The same calculation will be applicable for calculating Easy Ship customer rejected units.

For example, If the seller shipped out 200 units in the Apr 2019 and if these 200 units, 20 units customer reject units are returned back to FC /seller. The 8% threshold, in this case, would be 16 (8% of 200 units). The fulfillment fees for 4 customers rejected units (20- 16) will be reimbursed.