Partial Refunds for Media Items
The following examples explain how refunds and refund administration fees are calculated for media items.
Example 1: Partial Refund for a Single Item in an Order
Assume that you receive the following order for a book with a single item and standard shipping:
Book price: $50.00 (the price you set) + Standard Shipping: $3.99 (the price set by Amazon)Total amount paid by the buyer: $53.99
For this order, your earnings are as follows:
Item price: $50.00 – Referral fee: $7.50 (15% referral fee) – Variable transaction fee: $1.80 (fee for books)
Note: Transaction fee is based on the Selling on Amazon fee schedule.
+ Shipping fee: $3.99Total amount received by the seller: $44.69Your total costs for this order are $9.30 (referral fee + transaction fee).
You now issue a partial refund of $15.00 for the item price. We will calculate the refund based on the percentage of the referral fee charged on the item price (excluding shipping). Amazon retains a variable transaction fee.
Refund calculation formula
$15.00 (partial refund) ÷ $50.00 (item price) = 30%
30% (refund percentage) x $7.50 (referral fee) = $2.25 (refund amount)
Refund administration fee calculation formula
In this example, the refund administration fee charged by Amazon is 70% of $7.50, or $5.25, plus the variable transaction fee of $1.80, for a total of $7.05.
Example 2: Multiple shipping refunds for the same order
Since shipping costs for media items are calculated per unit, shipping costs charged to the buyer cannot be combined. If a buyer orders multiple items from you, or multiple items of the same item, the buyer is charged the same shipping fee for each item. In this example, you may want to issue a partial refund to the buyer to reimburse part of the shipping fee.
Assume that you received the following order of DVDs with multiple items and expedited shipping:
1 DVD-1: $20.00 + expedited shipping: $6.195 DVD-2: $100.00 + expedited shipping: $30.951 DVD-3 (set): $75.00 + expedited shipping: $6.19Total amount paid by buyer: $238.33
For this order, your revenue would be as follows:
Item price: $195.00- Referral fee: $29.25 (15% referral fee)- Variable closing fee: $9.45 (7 x $1.35 for DVD items)
Note: The closing fee is based on the Selling on Amazon fee schedule.
+ Shipping: $43.33 Total amount received by the seller: $199.63 Your total cost for this order is $38.70 (sales commission + transaction fee).
You now refund the buyer a portion of the shipping cost, which is $23.33 (retaining $20.00 for actual shipping and handling). We will calculate the refund as a percentage of the sales commission charged on the item price. For media items, Amazon does not calculate a sales commission on shipping costs. Instead, it charges a sales commission on the item price (excluding shipping). In addition to the sales commission, Amazon also charges a variable transaction fee. When you issue a partial refund, Amazon retains the variable transaction fee.
Refund calculation formula
US$23.33 (partial refund) ÷ US$195.00 (product price) = 11.96%
11.96% (refund ratio) x US$29.25 (sales commission) = US$3.49 (refund amount)
Refund management fee calculation formula
In this example, the refund management fee charged by Amazon is 88.04% (100% – 11.96%) of US$29.25 (or US$25.75), plus a non-fixed transaction fee of US$9.45, for a total of US$35.20.
Amazon official website original details:
Partial Refunds for Media Products
The following examples illustrate how refund credits and refund administration fees are calculated for a Media Product.
Example 1: Partial Refund of a single item from an order
Suppose you receive the following single-item order for a book with standard shipping:
Cost of book:$50.00 (item price set by you)+ Standard Shipping:$3.99 (rate set by Amazon)Buyer’s Total:$53.99
For this order, your proceeds would be as follows:
Product charges:$50.00– Referral Fee:$7.50 (referral fee of 15%)– Variable Closing Fee:$1.80 (fee for Books products)
Note:The closing fee is based on the Selling on Amazon Fee Schedule.
+ Shipping:$3.99Seller’s Total:$44.69Your total fees for this order would be $9.30 (the Referral Fee + the Variable Closing Fee).
You then issue a partial refund in the amount of $15.00 of the product charges.The amount returned to you is calculated as a percentage of the referral fee, or commission, paid on the product charge, not including shipping. The variable closing fee is retained by Amazon.
Formula for refund credit
$15.00 (partial refund) ÷ $50.00 (product charge) = 30%
30% (percentage refunded) x $7.50 (amount of referral fee) =$2.25(credit for refund)
Formula for refund administration fee
The Amazon refund administration fee in this case would be 70% of $7.50, or $5.25, plus the $1.80 variable closing fee, for a total Expedited Shipping:$6.19Buyer’s Total:$238.33
For this order, your proceeds would be as follows:
follows:
Product charges:$195.00– Referral Fee:$29.25 (referral fee of 15%)– Variable Closing Fee:$9.45 (7 x $1.35 fee for DVD products)
Note:The closing fee is based on the Selling on Amazon Fee Schedule.
+ Shipping:$43.33Seller’s Total:$199.63Your total fees for this order would be $38.70 (the Referral Fee + the Variable Closing Fee).
You would then issue a refund of part of the shipping fees to return$23.33to the buyer(retaining$20.00as your actual shipping and handling costs). The amount returned to you is calculated as a percentage of the referral fee, charged on the product price. For Media Products, Amazon does not calculate a referral fee on shipping, instead the referral fee percentage is charged on the product price, exclusive of shipping. In addition to the referral fee, a variable closing fee is applied. The variable closing fee is retained by Amazon when you issue a partial refund.
Formula for refund credit
$23.33 (partial refund) ÷ $195.00 (product charge) = 11.96%
11.96% (percentage refunded) x $29.25 (amount of referral fee) =$3.49(credit for refund)
Formula for refund administration fee
The Amazon refund administration fee in this case would be 88.04% (100% – 11.96%) of the $29.25 Referral Fee, or $25.75, plus the $9.45 in variable closing fees, for a total of$35.20.
Article source: Amazon official website