Amazon FBA Return Impact Calculator

How Amazon FBA Returns Affect Profitability

When a customer returns a product, Amazon refunds the buyer the full purchase price and then returns the item to your FBA inventory — or begins the disposition process you've chosen. The returned unit may be re-graded as "used" or "unsellable" depending on its condition, which can mean it never generates revenue again.

Beyond the lost revenue, returns carry a cascade of costs: the referral fee you paid isn't always refunded in full, the FBA fee you paid isn't refunded, and depending on the item's condition you may also face COGS loss plus additional processing fees.

Return Rates by Category

Return rates vary widely by product category. Electronics and apparel typically see 10–20%+ return rates, while consumables and grocery items usually see under 5%. Home goods and toys typically fall in the 5–10% range. If your return rate is above category average, look at listing accuracy — misleading images or descriptions are often the root cause.

Choosing the Right Disposition

• Resell as new/used: Best outcome if the item comes back in sellable condition — no additional fee and you recover most of the value
• Remove to seller: Use when items are high-value and you can refurbish, re-inspect, or resell through other channels
• Liquidate: Good for clearing unsellable units without Amazon's disposal fee — expect 10–20% return on value
• Dispose: Cheapest in time/effort but you lose the unit completely — best for low-value items where return shipping costs more than the unit

Frequently Asked Questions