Amazon built its market position thanks to simple and hassle-free returns, which is a huge advantage for customers. However, for sellers, this means a range of challenges, especially when returns become too frequent or customers abuse the refund policy.

On top of that, there are A-to-Z claims that can seriously impact a seller’s account. How does this mechanism work, and how can you minimize the risk of losses?

Returns and refunds on Amazon – what you need to know?

Amazon gives customers 30 days to return a product without giving a reason, and in some cases even allows them to keep the product and receive a refund.

What does this mean for sellers?

✅ The seller bears the return costs, including return shipping fees (if they do not pass them on to the customer).

✅ Amazon automatically approves most returns, while the seller has limited options to reject them — exceptions are cases when the product is non-returnable (e.g., personalized items).

✅ Refunds must be processed within 2 business days of receiving the return shipment – if the seller does not do this, Amazon may force the refund.

✅ The seller must assess the condition of the returned product – if it is undamaged, it can be listed for sale again. Otherwise, the seller incurs a loss.

✅Amazon may issue a full refund to the customer without requiring the product to be returned, especially if the product’s value is low or the return is justified due to a problem caused by the seller.

• Return costs, which they most often cover themselves.
• Lack of control over the return decision – in many cases, Amazon automatically approves the refund.
• Possible product losses when Amazon decides the returned item is not suitable for resale.

Why does Amazon prioritize such a flexible return policy?

Amazon’s main goal is to maximize customer satisfaction. An easy return process is one of the reasons why customers are so eager to shop on this platform.

✔ No risk for the buyer = more orders.
✔ Fast returns and refunds increase customer loyalty.
✔  Amazon minimizes problems related to complaints.

For sellers, however, this means the need to adjust their strategy to reduce the number of returns and minimize their impact on the account.

How to avoid frequent returns and losses?

If the number of returns is increasing, it’s worth investigating the possible causes.

1. Detailed product descriptions

✔ Customers return products when they don’t meet their expectations. The better the description and images, the lower the chance of a return.

✔ It’s important to include actual dimensions, materials, and high-resolution photos to avoid customer disappointment.

2. Thorough quality control

✔ Damaged or defective products are the most common reason for returns. If you sell physical products, it’s worth investing in quality control.

✔ For FBA, it is recommended to check whether Amazon is not sending returned items to customers as new products.

3. Fast delivery and sturdy packaging

✔ Products damaged during shipping are often returned. Good packaging and a reliable carrier can greatly reduce this problem.

4. Transparent return policy

✔  A well-informed customer is less likely to file complaints. Clear return policies and easy access to quick support help prevent issues from escalating.

A-to-Z claims – a mechanism that can threaten your sales

An A-to-Z claim is the most serious form of complaint on Amazon. A customer can file it when:
❌ They do not receive their order.
❌ The product is damaged or not as described.
❌ The seller does not respond to the customer’s inquiry within 24 hours.

What happens after the claim is filed?

• Amazon reviews the case but usually sides with the customer, often without thoroughly verifying all evidence.
• The seller loses the order value and bears the cost of the return.
• The Order Defect Rate (ODR) increases, and exceeding the 1% threshold can lead to account restrictions or even suspension.
  

 If the ODR exceeds 1%, Amazon may suspend your selling privileges.

How to avoid A-to-Z claims and protect your seller account?
Every claim weakens your position on Amazon, so it’s worth acting proactively.

1. Respond quickly – response time matters
   ✔ A customer who doesn’t get a reply is more likely to escalate the issue. Amazon requires a response within 24 hours – even on weekends.
   
2. Monitor product quality and deliveries
   ✔ Defective products mean more claims. Regular quality checks and working with reliable suppliers can significantly reduce the risk of problems.
   
3. Take a proactive approach with customers
   ✔ If you notice a customer is having an issue, contact them before they decide to file a claim. Sometimes offering a refund or replacement is enough to prevent escalation.

4. Shipment tracking and reliable carriers

✔ Undelivered packages are one of the main causes of claims. Monitor delivery status and choose carriers that provide reliable package tracking.

Summary

Returns, refunds, and A-to-Z claims are an integral part of selling on Amazon, but sellers can take steps to minimize the risk of losses.
✔ Fast and effective communication reduces the number of claims.
✔ Attention to product quality and transparent descriptions lower the number of returns.
✔ Monitoring the ODR helps avoid account restrictions.
✔ A proactive approach to customers helps prevent escalation of issues.Adapting to Amazon’s policies not only protects your sales but also increases customer loyalty and strengthens your market position.
Don’t wait for the first A-to-Z claim to impact your sales – act now and secure your business!