During the growth stage, due to the continuous increase in the number of orders, the hidden dangers of various aspects of the product will gradually be exposed in the form of emails, bad reviews, and refund rates. For sellers who are preparing to create hot products, it is necessary to analyze the product status in a timely manner and make improvements, and constantly make up for the shortcomings, so that the link can have higher potential for growth and profit space.
In most cases, the buyer requests a return within 30 days after receiving the goods. At this time, Amazon will charge 20% of the commission and the round-trip delivery fee, and will return the entire order amount to the buyer, which will result in at least $6 to $12 in delivery fees for each return, and this fee is paid by the seller. For some products with low customer unit prices, one FBA return often offsets the profits of 2 to 5 sales.
For self-delivery returns, although the round-trip delivery fee is avoided, the value of the goods will be lost. In addition, 5% to 18% of buyers’ returns will cause the product to be damaged or unsalable. In this case, Amazon will still refund the buyer in full. For products with high customer unit prices, this loss is also quite huge. Although the average refund rates of different categories vary, the refund rate of clothing categories can easily reach more than 15%, and the refund rate of other categories generally does not exceed 10%, but no matter which category, reducing the refund rate can effectively increase the profit level.