How to Avoid Returns and Refunds on Amazon

Did you know that Amazon’s average return rate is between 5% and 15%? That might seem low compared to other platforms, but when you consider Amazon’s massive scale, it’s staggering. With around 12 million orders placed daily, that means 600,000 to 1.8 million orders get sent back every single day.

And that’s just the big picture. If you zoom in, you’ll see that some product categories have much higher return rates than others. Take jewelry and electronics, for example—these categories can have return rates as high as 40%.

What if your products are among them? How do you think will that affect your online business? More importantly, what can you do to reduce returns and protect your profits? And is it even possible to avoid returns and refunds altogether?

In this blog post, I’ll break it all down. I’ll share a strategy that not only helped me reduce my return rate on Amazon but also boosted my sales in the process. Let’s get started.

Amazon’s flexible return policies prioritize buyers but often leave sellers vulnerable to refund fraud, higher return rates, and financial losses.
Customers return products for various reasons, including unrealistic expectations, bracketing, buyer’s remorse, and false defect claims—often with Amazon siding with them.
Each return costs sellers more than just a lost sale, factoring in return shipping, unrecoverable inventory value, and Amazon’s non-refundable fulfillment fees.
Sellers can challenge unfair returns by appealing through Seller Central, requesting removal orders for unsellable stock, and reporting policy abuse.
Minimizing returns starts with accurate product listings, better packaging, clear expectations, and proactive customer support to prevent unnecessary refunds.

Why is it so easy for buyers to return products on Amazon?

Amazon’s return policy is infamously lenient because it prioritizes customer satisfaction above all else. They’ve built their empire on convenience, and an easy return process is part of that equation.

Jeff Bezos himself once said, “We see our customers as invited guests to a party, and we are the hosts. It’s our job every day to make every important aspect of the customer experience a little bit better.”

Part of that “better” experience includes free or hassle-free returns, which encourage people to buy more without fear of getting stuck with a bad product.

Amazon’s A-to-Z Guarantee is another reason why returns happen so easily. If a buyer is unhappy, even if the seller did nothing wrong, Amazon often sides with the customer. That’s why refund fraud—where buyers claim an item is defective just to get a free product—has become such a headache for sellers.

The rise of “bracketing” has also played a huge role in increasing return rates. This is when customers order multiple sizes, colors, or models of the same product with the intention of returning the ones they don’t want.

Fashion and footwear sellers get hit the hardest by this trend. According to Narvar, around 41% of online shoppers admit to bracketing, and Amazon’s easy return policy makes it effortless.

Amazon has made it this way on purpose because they know a smooth return process increases buyer confidence. But while it’s great for customers, it can be a nightmare for sellers like us.

Why do buyers return products and what reasons does Amazon accept?

Customers return products for all kinds of reasons, but Amazon doesn’t treat every return the same way. Some refunds are approved automatically, while others give sellers a bit more control. Unfortunately, Amazon almost always sides with the customer, even when the return seems unfair.

One of the most frustrating reasons is the “item not as described” claim. If a product doesn’t match its listing in any way, Amazon will almost always approve the return. The problem is, some buyers have unrealistic expectations. I’ve had customers return items because they expected a different texture, color, or weight—even when all these details were clearly listed.

Once, I sold a leather wallet with a natural grain variation, which was clearly mentioned in the description. Still, a buyer returned it, saying it didn’t look exactly like the image. Amazon processed the return instantly, no questions asked. (I wish I could insert an angry emoji here.)

Another common reason is “defective or damaged” items. Even if a product leaves the warehouse in perfect condition, it doesn’t matter. If a buyer claims it arrived broken, the seller takes the loss. This is a nightmare for anyone selling fragile products like electronics, ceramics, or glassware.

A seller I know shipped high-end Bluetooth speakers and received multiple returns labeled as “defective.” When he got them back, they worked perfectly—buyers just didn’t like the sound quality and found it easier to claim a defect than admit they changed their minds.

Late deliveries can also lead to returns, especially for Fulfilled by Merchant (FBM) sellers. If Amazon handles the shipping (FBA), they take responsibility for delays, but if you’re shipping the orders yourself, any delay—whether it’s your fault or not—can result in a refund request.

I once had a customer cancel an order after it was already shipped just because it didn’t arrive a day earlier than expected. Even though the package was on time according to Amazon’s tracking, the buyer still complained, and I lost both the product and the shipping cost.

Some buyers return items simply because they regret their purchase, which Amazon allows with little resistance. This happens a lot with impulse buys and trending products. After a holiday promotion, I saw a huge spike in returns on a novelty kitchen gadget.

People got excited, bought it, and then returned it after realizing they didn’t actually need another gadget cluttering their counter. What made it worse was that Amazon required me to cover the return shipping, even though the product wasn’t defective or misrepresented in any way.

Then there are customers who claim they received the wrong item, even when they ordered exactly what they got. Sometimes, they mistakenly order the wrong size or color and instead of admitting their mistake, they blame the seller.

I had a customer order a blue backpack, then return it saying they received the wrong color. When I got it back, it was the exact blue backpack they had originally ordered. But Amazon accepted the return without verifying the claim, and I was stuck with the cost.

Returns also spike at certain times of the year, especially right after the holidays. January is the worst month for returns, as gift recipients send back items they didn’t want or need.

A study by Optoro found that nearly $100 billion worth of products are returned after the holiday season, and Amazon handles a massive share of that. Most of these returns have nothing to do with defects or misleading listings—it’s just part of the reality of selling online.

Returns are unavoidable, but knowing why they happen can help you take steps to minimize them. And trust me, anything you can do to lower your return rate will save you money, time, and a lot of frustration.

How much will a single return request cost you?

Every return request cuts into your profits, but the real damage goes beyond just losing a sale. There’s a hidden cost that many sellers don’t realize until they start seeing how much money quietly vanishes from their earnings.

Return shipping alone can wipe out your margins. If Amazon rules in favor of the buyer—which, let’s be honest, happens more often than not—you’re stuck paying the cost of getting the item back. Even when the product was in perfect condition, I’ve still had to cover the return.

If you’re selling a low-margin item, that shipping fee alone can turn a sale into a loss. Imagine selling a $20 product and then paying $6 to $8 just to have it returned. You’re not just losing profits—you’re actually paying out of pocket.

Restocking fees don’t always help, either. While Amazon allows them in certain categories, most sellers never see that money. Amazon tends to refund the buyer without compensating you, no matter the reason for the return.

I once sold a $40 home appliance part that was returned for no valid reason, and I had no way to recover even a fraction of the cost. Even if you’re in a category where you can charge restocking fees, doing so can trigger customer backlash, leading to negative reviews that hurt future sales.

The condition of the returned item is another costly issue. If a product comes back damaged, missing parts, or clearly used, you can’t resell it as new. Some buyers wear shoes outside and return them, others use kitchen appliances once and send them back, and plenty of electronics arrive without their original packaging.

Even when the item still works, you’re often forced to resell it at a discount as “Used – Like New” or worse, dispose of it entirely. Either way, it’s a loss.

And then there are the fees Amazon quietly keeps. If you’re an FBA seller, you already know that Amazon charges fulfillment fees when you make a sale. But what many don’t realize is that when a return happens, Amazon doesn’t refund all those fees.

You end up covering part of the processing costs, even though the sale didn’t stick. So not only do you lose revenue from the refund, but you also pay fees for a transaction that never truly happened.

When you add it all up—return shipping, product devaluation, refund fees, and inventory loss—the true cost of a return can be anywhere from 15% to 50% of the product’s original value. It’s one of those silent profit killers that many sellers don’t notice until it’s too late.

That’s why avoiding returns is about keeping customers happy and your business alive. I learned these lessons the hard way, and if there’s one thing I can say for sure, it’s that preventing a return is always cheaper than dealing with one.

How do you fight back when the buyer’s reason is unjustifiable?

Not all return requests are fair, but if you’ve been selling on Amazon for a while, you already know that arguing rarely works in your favor.

Amazon prioritizes customer satisfaction above all else, often at the seller’s expense. That doesn’t mean you’re completely powerless, though. If you believe a return request is unjustified, there are ways to push back strategically and protect your business.

One way to challenge an unfair return is by filing an appeal through Seller Central. If a buyer sends back a different item than the one you sold—or worse, an empty box—you have the right to dispute it.

I once sold a premium kitchen knife, only to have it returned as “defective.” When I checked my inventory, I realized the customer had swapped it for a cheap knockoff.

I immediately opened a case with Amazon Support, submitted photos proving the switch, and after a few back-and-forth messages, Amazon reimbursed me for the fraudulent return. These cases don’t always go in your favor, but if you provide solid evidence, you have a fighting chance.

Another way to avoid unnecessary losses is by requesting a removal order for returned items. Amazon often labels returns as “unsellable” even when there’s nothing wrong with them. I’ve had brand-new products come back in perfect condition, yet Amazon classified them as “damaged” and marked them for disposal.

Instead of accepting the loss, I started requesting removals for high-value items. When they arrived, I inspected them myself, and most were completely fine. A quick repackaging was all it took to relist them as new.

If you’re selling electronics, beauty products, or anything fragile, never assume Amazon’s classification is accurate—it could be costing you money unnecessarily.

There’s also the problem of repeat offenders—buyers who abuse Amazon’s return policy like it’s a free trial service. Some wear clothes once and send them back, while others deliberately return used or broken items. If you notice a pattern, report them through Amazon’s abuse system.

I had a buyer who returned five different phone cases over three months, each time claiming they were “defective.” After digging deeper, I realized they were likely using the cases temporarily and getting refunds. I reported their behavior, and while Amazon doesn’t always act immediately, consistent abuse reports can lead to account restrictions.

Since Amazon’s policies lean heavily in favor of buyers, the best way to protect your business is to prevent returns from happening in the first place. But when you do face an unfair refund request, don’t just accept it without question.

How do you avoid returns and refunds?

If you want to protect your profits, you need to be proactive about reducing returns. When I first started selling on Amazon, I underestimated how much even a small return rate could cut into my margins. But after making a few key changes, I not only reduced returns but also improved customer satisfaction.

One of the biggest adjustments I made was refining my product listings. A misleading page is a surefire way to get flooded with returns. Customers expect to receive exactly what’s shown and described, and if there’s even the slightest difference, they won’t hesitate to send it back.

For apparel, accurate size charts are critical—many sellers lose money simply because a “medium” turns out to fit more like a “small.” In tech products, every little detail matters, from battery life to compatibility with other devices.

I learned this the hard way when I kept getting returns on a Bluetooth speaker, only to realize I hadn’t mentioned that it wasn’t compatible with older Android models. A simple update in the product description solved the issue.

Better packaging also made a huge difference. Amazon warehouses aren’t always gentle, and customers won’t keep a product that arrives damaged. When I first started selling ceramic mugs, I used standard boxes with some padding, but nearly 10% of my orders were being returned due to breakage.

Once I switched to double-boxed packaging with extra bubble wrap, my return rate dropped significantly. If you sell anything fragile, assume it will be thrown around in transit and package it accordingly.

Setting realistic expectations is just as important. Overpromising might boost sales in the short term, but it backfires when customers feel misled. If you sell electronics, don’t just highlight the best-case battery life—buyers want real-world performance numbers.

If you sell skincare, be honest about what your product can and can’t do. I once returned an anti-aging cream because the listing promised “instant results,” which, of course, wasn’t true. The product itself wasn’t bad, but the exaggerated claims set false expectations. Clear, honest descriptions go a long way in preventing unnecessary returns.

Customer service plays a huge role too. Many returns happen not because the product is faulty, but because the buyer doesn’t know how to use it. I’ve had customers message me saying an item wasn’t working, only to find out they weren’t setting it up properly. A quick troubleshooting email often saved the sale.

At the end of the day, you can’t eliminate returns completely, but you can reduce them with a few smart adjustments. Once I started taking these steps seriously, I saw a clear drop in returns and an increase in positive reviews. Small changes add up, and over time, they can save you a significant amount of money.