If you haven’t noticed it already, Amazon recently started issuing refunds which exceed the order total through the A-Z guarantee, despite the official policy wasn’t updated to reflect the change. This means that your buyers can now receive back more money than what they originally paid and are able to submit a claim even on fully refunded orders!
How does it work?
A buyer places an order from your store, receives it and demands an extra credit. It could be a customs duty, which they had to pay, extra travel expenses to collect the package from the post office (rather than having it delivered to their door) or return postage.
It is very tricky, because there is no upper limit for credits which Amazon generously issues out of the poor seller’s balance. Let’s say that a buyer from Belgium orders a £5 ring with £2 postage from your store, however he isn’t satisfied with it. He decides to return it on it’s own initiative and sends it back using FedEx Priority service, after paying £90 for shipping. The buyer then submits an A-Z claim along with the shipping receipt and gets fully credited £5 for the original item, £2 for the postage and £90 for the return postage.
There is nothing you can do, because Amazon will not return you the extra money and even if you successfully appeal the A-Z claim, you can only get back the original order total.
A-Z claims can now be submitted demanding an extra credit even after the order was fully refunded and there is absolutely nothing you can do as a seller to prevent having funds stolen out of your account.
Here is an example screenshot showing such forcibly issued credit, which cannot be retrieved back by appealing the A-Z claim:
What can you do about it?
Nothing. Amazon wants all sellers to go FBA and FBM sellers can only expect more similar “improvements”.
Many Amazon sellers recently started trading stocks and crypto currencies, hoping to diversify their income, which is a very good idea with all the uncertainty which comes with the platform. For this reason, we launched a new Facebook group, Crypto Arbitrage Income (Bitcoin, Crypto, Altcoins, Blockchain, Trading) – feel free to join us and forget about the troubles of selling on Amazon for a moment!
Regarding Amazon Seller Performance, you can always participate in our Amazon Seller Performance – Friendly Advice – Worldwide group, where you will be very welcome.
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