Amazon is introducing new return fees starting June 1st, significantly impacting seller profitability. This episode breaks down the new fees, how to identify affected SKUs using the SKU Economics Dashboard in Seller Central, and provides actionable strategies like adjusting pricing or utilizing "Returnless Returns" to mitigate the financial impact and protect your profit margins.
Key takeaways
Starting June 1st, Amazon will charge $2-$4 extra per return for SKUs exceeding category-specific return thresholds. Proactively check your SKU Economics Dashboard in Seller Central to identify at-risk products.
Utilize Amazon's SKU Economics Dashboard to monitor your product's return rates and assess profitability in light of new fees. This tool is crucial for identifying products nearing or exceeding their category's return threshold.
For products exceeding the return threshold, immediately re-evaluate and potentially increase your pricing to absorb the new return processing costs and maintain profitability.
Consider enabling the "Returnless Returns" option for your most frequently returned products to potentially bypass the new fees by avoiding physical returns altogether.
Continuously monitor Amazon fee updates and policy changes, as they directly impact your profit margins, and adapt your strategies proactively to sustain profitability.
In this episode, Mike and Dave dissect Amazon's latest announcement regarding Return Fees, how this will affect sellers starting on June 1st, and a possible option to combat these fees. Another day, another fee gets announced. It seems like third-party sellers are getting hit left and right lately with new fees, the latest one being Return Fees. In this episode, Dave and I are going to dive into the latest announcement regarding Return Fees, what this means for sellers, and how you can possibly combat these fees. The Big Takeaways If you're in a hurry, here's a few of the big key points from this episode: Starting June 1st, Amazon will start charging sellers $2-$4 extra dollars to process returns. This will only affect SKUs that have surpassed the return threshold in their category. The specific thresholds have been listed by Amazon here. To check for your product's return rate, check out Amazon's SKU Economics Dashboard which is available in Seller Central. Take into account your product's return fees, and double check if your products are still profitable. If you're over the Return Threshold for your product, increase your price. Turning on the "Returnless Returns" option for your most returned products can be a viable way to combat these extra charges. Timestamps Podcast Start - 0:00 Looking at return rates and return thresholds - 0:35 The return fees announcement - 1:22 The published thresholds for categories - 2:21 How return fees affect your products profitability - 3:30 All the new fees to think about - 4:54 Tip: The SKU Economics Dashboard - 5:20 How the Return Rate Thresholds are calculated - 6:08 What sellers should do - 6:56 Mike's most returned product - 7:05 Tip: How to "possibly" combat these return fees: turning on returnless returns - 7:
Frequently asked about this episode
What does this episode say about amazon & marketplaces?
Starting June 1st, Amazon will charge $2-$4 extra per return for SKUs exceeding category-specific return thresholds. Proactively check your SKU Economics Dashboard in Seller Central to identify at-risk products.
What does this episode say about finance & fundraising?
Utilize Amazon's SKU Economics Dashboard to monitor your product's return rates and assess profitability in light of new fees. This tool is crucial for identifying products nearing or exceeding their category's return threshold.
What does this episode say about supply chain & operations?
For products exceeding the return threshold, immediately re-evaluate and potentially increase your pricing to absorb the new return processing costs and maintain profitability.
What does this episode say about amazon & marketplaces?
Consider enabling the "Returnless Returns" option for your most frequently returned products to potentially bypass the new fees by avoiding physical returns altogether.
What does this episode say about amazon & marketplaces?
Continuously monitor Amazon fee updates and policy changes, as they directly impact your profit margins, and adapt your strategies proactively to sustain profitability.
