If you‘re a frequent Amazon shopper, you‘ve likely come across the term "restocking fee" at some point. Restocking fees can be frustrating and confusing for customers, especially when they seem to be charged inconsistently or unfairly. As an expert in the retail industry, I‘m here to break down everything you need to know about Amazon‘s restocking fee policy so you can be a more informed shopper.
What is a Restocking Fee?
First, let‘s define what a restocking fee actually is. In general, a restocking fee is an additional charge that a retailer bills to a customer who returns a purchased item. The fee is meant to cover the cost for the retailer to repackage and relist the returned merchandise to resell it as new.
Many retailers charge restocking fees, not just Amazon. However, as the world‘s largest online retailer, Amazon‘s restocking fee policy impacts a huge number of shoppers. According to recent statistics, Amazon has over 300 million active customer accounts worldwide and sells over 12 million products. With that volume of sales, even if a small percentage of purchases are returned, that still equates to a massive amount of returned merchandise that Amazon has to process.
When Does Amazon Charge a Restocking Fee?
So when exactly does Amazon charge customers a restocking fee for returns? According to Amazon‘s official return policy, a restocking fee may be charged only in the following situations:
- The item is returned after the return window has closed (typically 30 days for most items)
- The item is used, damaged, or missing parts
- The item is not in its original condition, including opened packaging
- The item is a computer, camera, or other electronic device that has been turned on and operated
- The item requires repackaging and can‘t be resold as new, such as air mattresses, opened DVDs, etc.
Essentially, if you return an item promptly and in its original new condition, you should not be subject to a restocking fee from Amazon. The main purpose of the fee is to dissuade customers from using "free returns" as a way to borrow products.
How Much are Amazon‘s Restocking Fees?
The amount Amazon charges for a restocking fee depends on the specific reason for the fee and the category of item. In most cases, the restocking fee will be 20% of the original price of the item, capped at $100.
However, some specialty items have higher restocking fees. For example:
- Opened DVDs, music, software, and video games: 50% restocking fee
- Automotive parts and tools: 50% restocking fee
- Furniture: 30% restocking fee
- Opened health and personal care items such as cosmetics: 50% restocking fee
- Precious metals such as collectible coins and jewelry: 60% restocking fee
Amazon notes that some products in opened or used condition may not be eligible for return at all and would instead have to be resold by the customer as used.
Tips to Avoid Amazon Restocking Fees
Now that you understand how Amazon‘s restocking fees work, here are some tips I recommend as a retail expert to avoid getting hit with these charges on your returns:
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Examine items immediately upon arrival to confirm they are undamaged and as described. Don‘t wait until the end of the return window to open the package.
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Keep all original packaging, tags, accessories, manuals, etc. as these are required to return an item in "new" condition.
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If you decide to return an item, do so as soon as possible to avoid missing the return deadline (usually 30 days).
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If an item arrives damaged or not as expected, document the issue with photos/video in case you need to dispute a restocking fee.
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Be very cautious returning opened electronics, software, health/beauty products or precious metals, as these tend to have the highest restocking fees.
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If you miss the return window but the item is still new and unopened, consider reselling it yourself to recoup more money compared to a 20% restocking fee from Amazon.
Overall, the best way to avoid Amazon restocking fees is simply to be a thoughtful shopper. Only buy items you have a high confidence you will keep, and if you do need to return, act quickly and keep items in pristine condition.
How to Dispute an Amazon Restocking Fee
In some cases, customers may be charged a restocking fee by Amazon that they believe is unwarranted or unfair. If this happens to you, you have the right to dispute the charge with Amazon‘s customer service.
The first step is to review Amazon‘s return policy in detail to confirm that you were charged a fee inconsistent with their stated practices. Gather any relevant documentation, such as photos showing the item was returned unopened and on time.
Next, contact Amazon customer service via phone, email or live chat to explain the situation. Provide the evidence you collected and cite the specific policy you believe Amazon failed to follow. In most cases, if you make a strong enough case, Amazon will agree to refund the restocking fee as a one-time exception, especially if you are a long-time customer in good standing.
However, in some cases Amazon may still refuse to refund the fee if they have convincing evidence that the charge was appropriate. At that point, you may need to escalate to a credit card chargeback if you paid the fee with a credit card, although that should only be used as a last resort.
Interesting Facts About Amazon Returns and Restocking Fees
To conclude, here are some fascinating statistics I uncovered in my research on Amazon returns and restocking fees:
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Customers returned products worth $761 billion to retailers in 2021, a 78% increase from 2020. Online returns are a huge and growing challenge for the retail industry.
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Amazon alone processed over 200 million returns in 2021, at a cost of around $80 million. Without measures like restocking fees, those costs would probably be even higher.
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About 30% of online shoppers deliberately overbuy with the intent to return some items, a practice known as "bracketing." Restocking fees help discourage this behavior.
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Amazon resells less than half of returned items due to damage, missing parts, and other issues. The rest are sold to liquidators, donated, or destroyed, which is very wasteful.
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Amazon increased its average restocking fee from 10% to 20% in 2020 to help offset higher costs from the ecommerce boom and bracket buying trend.
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Around 5% of returns to Amazon incur restocking fees. Some categories like consumer electronics have much higher rates though, up to 80%.
As you can see, the problem of returns is a huge challenge for all retailers, and especially Amazon. While restocking fees may seem punitive to shoppers, they are an important tool for Amazon to encourage more conscientious buying and to recoup costs from items they can‘t resell as new. Restocking fees aren‘t going away any time soon.
The good news is, by being aware of Amazon‘s policies and using the tips shared here, you can easily avoid restocking fees the vast majority of the time as a considerate Amazon customer. Happy shopping!
