What is the change in policy?

In light of the ongoing situation due to COVID-19 pandemic and its likely impact on sellers, we are introducing a temporary change to the existing Seller Flex Damage Reimbursement policy.

As per the regular policy, fixed damage allowance (percentage of your turnover) is paid out every month. As your turnover could be lower in the months of March, April and May, we will temporarily pause the policy, and instead, allow you to claim for damages during the COVID-19 pandemic.

With this change, you will not get reimbursement payouts under Fixed Damage Allowance. Instead, you can get item-level reimbursements for damaged returns by raising claims (by contacting us).

Note: The policy change is only temporarily to support sellers during the COVID-19 pandemic. Please read below for policy timelines and other details.

When does the change apply?

The change is effective from March 24, 2020 onwards. The damaged returns received by you between March 24, 2020 and May 31, 2020 will be eligible for claim-based damage reimbursement. In addition, units shipped on and after March 1, 2020 and on and before May 25, 2020 will also be included in claim-based policy irrespective of their return date.

Note: The damage claims for the eligible returns (as mentioned above) must be filed by Jun 30, 2020 or within 15 days from return delivery date whichever is later.

The damage allowance which was already paid to you on March 15 will not be clawed-back. All subsequent damage allowance payouts will be stopped including the one scheduled for April 15, 2020. The damage allowance payouts will resume for orders shipped from May 26, 2020 onwards.

How can I raise reimbursement claims for damage returns?

To raise reimbursement claims for damage returns:

  1. Click on the form here.
  2. Read the instruction on the top of the form. Fill the required details, upload the images and submit the form.
  3. The status of your claims will be emailed to you from sf-claim-status@amazon.com within 15 days from the date of submission.
  4. You can also view the status of of your claims in ‘Seller Flex Damage Claims Report’ here.

Where can I check my reimbursements?

To check reimbursements follow the steps below:

  1. Click on the link here.
  2. Click on the Reports tab.
  3. Enter the Order ID and FNSKU details to get the reimbursement details.

How much reimbursement will be paid for damages?

The damage reimbursement will be paid as per Effective reimbursement Value as calculated below:

Effective reimbursement Value = (Effective Reimbursement Rate) x [(Fair Market Value of unit) - (Amazon SOA Fees and FBA Fees)]

The effective reimbursement rate for each product category is defined in a table at the end. The Amazon SOA is reimbursed for all returns and FBA Fees are reimbursed for Undelivered and Reject orders as per policy. Also, we have already reimbursed FBA fees for all orders, which were cancelled due to COVID-19 situation.

What is Fair Market Value?

We consider several factors in our estimate of the fair market value of the item, including your sales history, list price and other sellers’ list prices of the item on the Amazon site. In case you disagree with our calculation of Fair Market Value you can raise a re-evaluation request through Contact UsSeller Flex > Returns and Reimbursements.

Will we continue to get the flat damage allowance?

Damage allowance payouts from April 15, 2020 onwards will be discontinued temporarily. The damage allowance payouts will resume for orders shipped from May 26, 2020.

How can I check the damage allowance paid for previous months?

The details of damage allowance payouts is emailed to you from sfperformance@amazon.com with subject line ‘Damage Allowance Reimbursement’. The email is sent on 15th of every month for the payouts damage allowance payouts for orders shipped in the previous month.

You can also download the Seller Flex Damage Allowance report here.

I have got a fake return, how to get reimbursement for fake or switcheroo returns?

Click on the link to raise reimbursement claims for switcheroo returns. It includes returns with fake or dummy products, main unit missing, empty box and materially different returns.

Terms & Conditions:

We expect sellers to raise genuine claims. At any point in time, if a seller is found to have filed a fraudulent claim or is found to be abusing or misusing the claim-based policy in any form or manner, the seller may be denied benefit of the policy and could also be subject to further enforcement actions such as loss of selling privileges. Note that all portions of seller reimbursement policies (forming part of Program Policies) that have not been expressly changed as per this communication on temporary policy revision continue to remain the same. For any questions or concerns, do not hesitate to reach out to us.

Table 1. Category-wise effective reimbursement rates for damage returns:

CategoryProductEffective Reimbursement Rate
MusicMusic10%
DVDDVD10%
GiftcardsGift Cards (Email/Physical)0%
WirelessCellular Phones30%
Smartphones30%
Wireless AccessoriesBatteries45%
Bluetooth headset25%
Cases and covers25%
Screen protectors25%
Data cables25%
Others25%
Office productsOffice products45%
ApparelsApparels28%
ShoesShoes26%
WatchesWatches31%
JewelleryJewellery25%
LuggageLuggage40%

Large appliancesAir Conditioner35%
Refrigeration35%
Washing Machines35%
Dishwashers35%
Cooking Applicances (Microwaves and Ovens)50%

Others50%
Electronics & PCLaptops/Notebooks/Desktop/Netbooks25%
Tablets45%
Other Electronics & PC Products*25%
CameraPoint & Shoot Cameras37%
DSLR Cameras37%
Pocket/Traditional Video45%
Camera45%
Handsfree/Professional Video Camera45%
Others*25%
Home EntertainmentTelevisions (LCD/LED/Plasma)55%
Other Home Entertainment Products*25%
Personal care appliancesAll personal care appliances32%
ToysAll Toys47%
BooksAll Books35%
SportsCycles50%
Apparels28%
Shoes26%
Other Sports Products*33%
SoftwareAll software products55%
Home ImprovementAll Home Improvement products52%
Lawn & GardenAll Lawn & Garden products35%
Digital textDigital text0%
Digital AccessoriesDigital Accessories0%
Digital DevicesDigital Devices0%
Video GamesGame CDs60%
Headphones & Headsets25%
Consoles other accessories72%
TyresTyres65%
AutomotiveOther Automotive products (except Tyres)*36%
HomeOther Home Products(Except Lighting)*30%
Bedsheets, towels, curtains28%
Lighting60%
KitchenSmall Appliances60%
Floorcare45%
Arts, crafts, and sewing60%
Home Environment50%
Other Kitchen Products*32%
Baby ProductsBaby Products47%
BeautyBeauty72%
GroceryGrocery72%
Musical InstrumentsMusical Instruments62%
Pet ProductsPet Products72%
DrugstoreDrugstore72%
Other category (Default Rate)25%

Table 2. * Category/GL Wise Detailed Product List:

Category/GLProducts
AutomotiveTyres, automotive accessories, clothing, helmets, equipment & tools, merchandise, chemicals, parts, accessories, and all other automotive products
ElectronicsCommunications, Mobile electronics, accessories, and others Electronics products
CameraLenses, Filters, Film Cameras, DSC Accessories, DVC Accessories, Digital Frames, Commercial and Home Security & Surveillance, Telescopes, Binoculars, Microscopes, and others
Home EntertainmentTelevisions, Media Players, VCR, Home Theater Projectors, Home theater in a box, Soundbars, and other home entertainment products
HomeHome décor, furnishings, bath, storage & Organization, bedding, Kitchen linen, Lighting and all other Home products
Kitchen (Small Appliances)Blenders, Bread Machines, Can Openers, Coffee Machines, Contact Grills, Convection Ovens, Deep Fryers, Electric Cookware, Electric Tea Pots and Water Boilers, Espresso Machines, Flat Grills, Food Processors, Food Steamers, Grinders, Hand Mixers, Ice Cream Machines, Juicers, Microwave Ovens, Rice Cookers, Slow Cookers, Specialty Electrics, Stand Mixers, Toaster Ovens, Toasters, Waffle Irons, Refrigerators, Rotisseries, Electric Knives, Slicers, Sharpeners, Lamps, Mixer Grinder Juicers, Cooktops - less than 4 burners (Electric), Cooktops - More Than 4 Burner (Electric), Misc
Kitchen (Floorcare)Upright Vacuums, Canister Vacuums, Robotic Vacuums & Accessories, Accessories, Handheld Vacuums, Electric Brooms, Irons, Ironing Boards and Accessories, Steamers, Floor Polishers, Carpet and Upholstery Cleaners, Floorcare Other, Vacuums Outlet
Kitchen (Arts, crafts, and sewing)Sewing Machines, Embroidery, Machines
Kitchen (Home Environment)Portable Air Conditioners, Fans, Coolers, Heaters, Air Purifiers, Humidifiers, Dehumidifiers, Air Purifier Filters, Humidifier Accessories, Weather Stations, Water Heaters, Home Environment Other, Water Purifiers and Accessories, Voltage Stabilizers
Kitchen (Other Kitchen Products)All renewed items and all other kitchen products except those mentioned in Small Appliances, Floorcare, Arts and Sewing, and Home Environment above
PCTablets, Laptops, Computer peripherals, computer storage, memory, Computing components & Networking and all other PC products
SportsCycles, Cricket, Football, Apparel, badminton, Fishing, game room & leisure, swimming, basketball, Camping, Golf, Hockey, Darts, Climbing, Exercise & fitness-equipment and accessories, Squash, Skating, Motorsports and all other sporting products
Wireless AccessoriesService plans, warranties, car kit/chargers, clips/holsters, Bluetooth speakerphones & Headsets, antennas & boosters, battery, data cables, screen protectors cases, and other wireless accessories
Video GamesGame CDs, Consoles, and Accessories