Tag Archives: Returns

Why I’m Using Poshmark to Sell My Amazon FBA Returns

Have you used the fashion buying and selling platform called Poshmark? It’s a website and mobile app where users can list their new and used clothing, shoes, accessories, and cosmetics for sale. I recently began using Poshmark as another platform (along with eBay) for selling my Amazon FBA shoe returns and shoes with boxes damaged in online arbitrage (OA) shipments.

Poshmark is super easy to use and geared towards the Instagram crowd, with lots of sharing, following, and liking of sellers and their items. Buyers can scroll through photos of fashion items arranged by brand, style, and people you follow. You can comment on items and @reply to other people’s comments, similar to other social media apps.

I decided to give Poshmark a try, since I have a stack of shoes in my office that I can no longer sell as new on Amazon, either because a customer returned them no longer new or because they arrived in an OA shipment with a damaged box or generic box (I don’t like to send higher end shoes to Amazon without a brand new, pristine box). I spent some time one afternoon setting up my account, snapping photos with my phone, and listing shoes in my new Poshmark closet. I’ve been pleasantly surprised with the results and wanted to share about Poshmark with you, in case you have Amazon returns in the apparel category that you want to try listing.

If you’re interested in trying Poshmark, you can sign up with the code UZGDS to get a $5 credit to your account (in case you want to buy something instead of just selling stuff!).

Here are few of the reasons I’ve been enjoying using Poshmark:

  • It is always good to have multiple selling platforms. While Amazon FBA is our number one way to make money selling shoes online, we like to diversify our selling platforms, so that we always have multiple methods of generating income, just in case. We recommend keeping an active eBay account in good standing as a seller, but it’s nice to have another alternative through Poshmark.
  • Poshmark has an extremely simple interface. Confession time: Setting up my Poshmark account was the first time I’ve learned a new selling platform on my own. I married into Stephen’s Amazon and eBay accounts. I was hesitant to set up an account on my own, but Poshmark is very easy to set up and navigate, both as a buyer and a seller. Seriously, I had several pairs of shoes listed in my Poshmark closet in way less than an hour.
  • The expectations for Poshmark photos make it quick and fun to list your items.  The layout of Poshmark is very Instagram-y (I know, that’s not really a word), and I found it a lot easier to make my photos look nice and conform to standards on Poshmark than on Amazon and eBay. No need for white backgrounds or a certain number of pixels. Poshmark asks sellers to use photos of items in attractive settings or styled the way you would wear them. I came up with a quick way to arrange my shoes for photos on our living room mantle with our everyday flowers and artwork in the background. Poshmark gives options for different filters on your cover photo for each item, so you can make an ordinary photo stand out a bit more. Listing shoes on Poshmark feels a lot more like making a social media post than working on Amazon and eBay listings.
  • Poshmark has set prices for shipping, paid by the buyer. Poshmark uses USPS Priority shipping, with a standard $6.49 shipping fee, paid by the buyer. Once you make a sale, Poshmark emails you a PDF of the label to print and attach to your package. I love not having to worry about trying to set up free shipping or any other shipping concerns! Sometimes they offer reduced or free shipping as an incentive to help you get more sales, which is another great feature.
  • Along with the shipping incentives, Poshmark encourages other incentives for buyers. So far I’ve felt that Poshmark does a good job of creating a fun atmosphere that encourages buying. They have theme “parties” every day, where certain styles or brands are promoted. If you have listings in that theme, you can share your items at the party and gain more eyes on your listings. They also encourage sales or percentages off if buyers create their own bundle out of your closet.
  • Poshmark is social, but it requires little effort to interact. One of the features of Poshmark is that you can “follow” other sellers. Unlike most social media platforms, which require lots of effort to build up a following, Poshmark seems to generate lots of followers without much work. I have no idea how, but within the first week I had 300+ followers. I’m making sales and getting likes and shares without much effort. I’m sure I would have more if I followed a bunch of other people so that they would follow me back, but for now I’m satisfied where I am. I think the fact that I have high quality, name brand shoes is what makes me stand out.
  • Poshmark has helped me get ideas for my Amazon FBA inventory. It’s so easy to get sucked into browsing Poshmark, much the same way you can get sucked into scrolling through Instagram and Facebook. I’ve really enjoyed flipping through other people’s closets and seeing which brands and styles are getting tons of likes and shares. It has helped me understand the apparel niche better as I’ve seen buyers interacting over the items they prefer the most.

I sold my first pair of shoes within a week of listing them, and since then I’ve had sales trickle in every 2 or 3 days on Poshmark – right now Poshmark is doing better for us than eBay for selling shoes!

I’m also considering cleaning out some items from the closets around our house and listing them on Poshmark, and I’ve browsed and found a few items for sale that I’m keeping my eye on. If you enjoy shopping for apparel for yourself and your family, you should consider checking out the deals on Poshmark. If you sign up and use the code UZGDS, you will get a $5 credit to get you started in your Poshmark account!

Have you used Poshmark, as either a buyer or a seller? Are there similar platforms you use for your Amazon FBA returns? We would love to hear about it in the comments!

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If you’re ready to step up your game with selling shoes on Amazon, check out our course, The Reseller’s Guide to Selling Shoes: Kick up Your Profits with New Shoes via Amazon FBA. It’s a combination ebook (100+ pages) and video course (over 4.5 hours of no-fluff content) that will help you avoid all the mistakes we made and get your shoe selling off on the right foot.

Improve the Customer Experience: Think Like an Amazon Customer

One thing Amazon wants to be known for is having the most customer-centric online marketplace in the world. Amazon truly takes “the customer is always right” to the extreme – just look at their super lenient return policy if you need an example. They want happy customers. Customers who will come back again and again. Customers who trust Amazon. Customers who leave raving reviews. Customers who tell all their friends how much they love Amazon.

Amazon wants the customer experience on their website to be the best in the world.

And that’s a phrase you as an Amazon FBA seller should remember and ingrain into your psyche: the customer experience. If you can begin to focus on how you as a seller can contribute to the customer experience on Amazon, you can begin to increase your profits and decrease your returns as an FBA seller.

The easiest way to make this mindset shift is to think like an Amazon customer. Shift away from always thinking like an Amazon seller…shift toward thinking like an Amazon customer.

Shift away from thinking only about your bottom line as a seller…shift toward thinking about how the customer will react when they open your product after their delivery arrives.

One tendency many of us resellers have developed over time is frugality. We are always on the lookout for a good deal, and we’re willing to overlook some minor flaws in order to save a few bucks. When customers go to Amazon, however, to purchase new items, they are looking for good deals but not at the expense of quality. They don’t want to receive an item with dinged up packaging or crushed corners. They want their merchandise to arrive in pristine, gift-quality condition.

As resellers, we absolutely cannot send in inventory to FBA warehouses that will cause customers to lose trust in Amazon or have an unpleasant customer experience. We must look for ways to positively impact the customer experience by providing quality merchandise. And when we give customers a great experience, it can increase our profits by giving us more sales, more product reviews, and more positive feedback.

Here’s how your contribution to the customer experience can increase your profits:

  • Thinking like an Amazon customer opens your eyes to see more items to source. Too often when we’re sourcing we pass up quality inventory because we think, “No one would ever buy that!” But if you’re thinking like an Amazon customer, your mind is open to the possibility that even the oddest item could be something customers are searching for. Scan everything (we use the Scoutify app), and don’t just disqualify items because you personally would never be interested in buying them. Pay attention to sales ranks and sales rank history, and you’ll begin to learn trends in what Amazon customers are buying.
  • Thinking like an Amazon customer helps you find higher ROI items. ROI is return on investment – and in general we as Amazon sellers want to get the biggest ROI possible. As you’re scanning items and keeping an open mind about what customers are looking for, you can start finding items that other sellers would overlook, but that have great ROI potential! Often we make assumptions that items aren’t worth anything, but when we do the work of 1) thinking like a customer on the search for these types of items, 2) scanning anything that fits the description of what an Amazon customer would be looking for, and 3) paying attention to sales rank and how it works in different categories, then we can start finding items that stand out and have higher ROI than if we just follow what every other seller is doing and chase after the latest BOLO.

Now let’s look at the other side of this coin of thinking like an Amazon customer. Here’s how you can begin to decrease your return rate:

  • Think like an Amazon customer while you’re sourcing. When you’re sourcing for inventory, the biggest way you can positively impact your return rate is to stop sourcing borderline items. It may be a hard habit to break, but for the sake of your seller account, I highly recommend you not buy items that are at all questionable as to their condition – and that includes packaging. No more dinged tins, crushed corners, broken plastic, or missing shoebox lids. The reseller thinks, “They’re just going to throw the box away. What difference does it make?” But the customer thinks, “What’s the deal? Why is this packaging all messed up? Is something wrong with the item also? Guess I should return it.” While you’re standing there in the clearance aisle sourcing, stop looking at the dollar signs on your scanning app for a moment and think about how your customer would feel opening an Amazon box and finding this particular item. Would they be pleased with their purchase? Or would they be disappointed because of how it’s presented? There are plenty of high quality inventory finds out there for you to source, so if you think the customer will be disappointed at all with the item in your hand, put that item down and keep moving down the aisle. Your return rate will thank you.
  • Think like an Amazon customer while you’re listing. When you’re listing your items for sale on Amazon, always round down on the condition. You’re not going to be making it out of the store with borderline items anymore, right? But sometimes inventory items make it home with you and you find out too late that there’s a defect in the packaging or something else about the item that makes it not in new condition. In these cases, always round down on the condition. Do not list them as new. List them as like new or very good.

Think like an Amazon customer. If someone buys a book in like new or very good condition, but they open it up and see that it’s way better than they imagined, they’re going to be pleased (and possibly leave you positive seller feedback). On the other hand, if they order a new book but open it up to find it has shelf wear of any kind, that book might be on the fast track to your return pile (and your seller feedback might take a hit). Always round down on the condition, not up.

It’s not worth it to make 5 extra dollars on a sale but risk the return or the impact on your seller account – it’s not even worth it to make $50 extra! Amazon sellers must stop putting their bottom line ahead of the customer experience.

It may seem counterintuitive to think like an Amazon customer, but really, try it! Next time you’re out sourcing or back at the computer listing, start thinking about your products and how a customer would respond to these products if they receive them in an Amazon shipment. It may sound crazy, but thinking this way will begin to increase your profits and decrease your returns.

Have you found some ways to think like an Amazon customer? If so, we’d love to hear from you in the comments below.

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Imagine knowing exactly what to expect in your Amazon FBA business every month of the year.

Imagine what it would feel like knowing you were not missing out on any of the opportunities that will come your way this year. 

Imagine working on your Amazon business knowing exactly what your priorities are, what you need to avoid, and what you need to accomplish during each month to make progress toward making this year your best sales year ever.

Find out more about The Reseller’s Guide to a Year in FBA: A Month by Month Guide to a Profitable Amazon Business today. The package includes a 200-page ebook, monthly live webinars, and 4 special bonuses.

Top 10 Tips For Finishing Strong in 2016

finishing-strong-2016First off, if you can see this… thank you for taking time out of your busy schedule to read today’s blog post. I know Q4 is crazy busy, and I hope my blog posts can help you take action t0 save time and increase your profits.

As we all know, the holiday selling season is in full bloom, and I hope you’ve been able to stock the Amazon warehouses with as much quality inventory as you possibly can. It seems pretty obvious to say, but you can’t sell a lot of items if you don’t have a lot of items in stock. To help you continue to make this month your best selling month ever, here are my top ten tips for finishing strong in 2016:

christmas-lights1. Reprice holiday related items. It’s crunch time. Log into Seller Central and check all of your holiday related items in your inventory. Do a keyword search for words like “holiday” and “Christmas” and make sure that all of your holiday items are competitively priced. While some of these seasonal items actually sell throughout the year, there might still be some in stock that you need to reprice. As always, double check with CamelCamelCamel and Keepa to see what prices and sales you could possibly expect. If you have multiples of higher ranked holiday items, it’s probably a good time to lower your prices to get the sale. You don’t want to hold on to these items another full year… especially with long term stores fees coming up in February.

2. The week before Christmas is a Prime spending frenzy! For items sold through FBA, hold on to your prices that you think will sell for Christmas. It’s not rare to see an item going for $15 on December 14th to be selling for $25 on December 19th. This is especially true for items where you’re the only FBA seller or one of a few FBA sellers. On the other hand, if the competition for sales is fierce, you might want to lower your price just a little to sell out before the newbie Amazon sellers freak out and lower their prices too far.

returns.jpg3. Be prepared for an increase in returns. Naturally, with an increase in sales, there is also an increase in returns. Don’t let this make you anxious or worried. It’s a natural part of selling. As you might already know, Amazon automatically refunds the FBA customer the full purchase price when the buyer requests to return an item. If the buyer fails to return the item to Amazon, then Amazon is supposed to automatically reimburse you for the item after 45 days have passed, but many times Amazon “forgets” and needs to be reminded. For more about how to make sure returned items are actually returned to Amazon, check out this popular blog post.

feedback4. Be prepared for an increase in negative and/or positive feedback. If you’re keeping to best business practices, then you’ll most likely get lots of new positive (4 or 5) feedback, but you’ll also get the occasional negative (1 or 2) or neutral (3) feedback score. If the feedback is actually about the FBA process (“my item came 2 days late”) or a product review (“this coffee maker is hard to use”), then it’s up to you to do whatever you can to get the feedback removed. Your feedback score is a huge aspect of your seller metrics. The better seller metrics you have, the more opportunities you’ll have to earn the buy box for your products. To read more about how I handle feedback issues (and how I keep a 100% feedback score), then check out this blog post.

5. Look at sales ranks differently. As you already know, the sales velocity in December shoots through the roof! This should make you look at sales rank differently than during the rest of the year. Here is an example: A toy with a sales rank of 10,000 in July might sell 25 times a week… while a toy with a rank of 10,000 in December might sell 50 times a day. This is important to know when you are out sourcing for inventory. Know that after Christmas and into January, many of these sales ranks will start to return to their normal patterns (slower sales), and it’s up to you to recalibrate your mind to what you need to expect when you’re out sourcing. Again, look at CamelCamelCamel and Keepa to see what prices and sales velocity to expect in January.

targetstore6. Be careful with sale prices at retail chain stores. Retail stores are realizing that they need to do whatever it takes to sell their stuff as soon as possible. Often, this means some outrageous clearance sales. But be careful, the items you’re finding clearanced at large national chains might be the same items hundreds of other resellers are finding. You don’t want to be slow moving on these sales. If you decide to buy, you need to get those items to Amazon as fast as possible… and I wouldn’t recommend going too deep. It’s possible that Amazon is about to be flooded with these items from other resellers sourcing at the same sales in their town. Buy fast, prep fast, and ship fast so it can sell fast.

7. Profit from selling items Merchant Fulfilled. We all love selling via FBA, but this week still provides a nice money making opportunity if you are willing to do a little more work. Selling via Merchant Fulfilled can still bring about some nice profits this week for items that buyers need to buy today. The best items to sell MF are those that both Amazon and FBA sellers have sold out of, are backordered, ones that are “Currently Unavailable” on their Amazon product page, and ones with a low rank that you don’t want to risk the extra time it takes to travel to a fulfillment center.

amazon_gift_card8. Keep sourcing for post-Christmas buyers. On the days after Christmas and well into January, many people have brand new Amazon gift cards burning a hole in their pockets. They head on over to Amazon and look for items to spend these gift cards on, and you want to be sure you have what they want waiting for them. Not only do gift card buyers show up, but so do the people who didn’t get what they wanted for Christmas. They know what they want, and since they didn’t get it, they decide to give themselves the gift they really want. Again, you want to be sure you have what they want when they go shopping for themselves.

list-of-updated-after-christmas-sales-20099. Buy Christmas-themed items at huge discounts. The week before, and right after Christmas, all of the Christmas related items go on sale at drastically reduced prices. This is a great time for you to stock up for your Amazon inventory. Like I’ve said before, seasonal items sell both in and out of season. I’ve seen Christmas ornaments sell in May, candy canes sell in March, and holiday DVDs sell in August. The stuff sells year round, but especially in July as people have “Christmas in July” parties. So, now might be a good time to buy holiday decor at 75% – 90% off. Again (I might be sounding like a broken record by now), check CamelCamelCamel and Keepa to see what prices and sales velocity to expect throughout the year.

10. Look towards the new year. Why am I talking about the new year in December? I honestly believe that if you wait until the first of January to start thinking about the new year, then you’re already behind in the game and are at a disadvantage. Imagine someone showing up for a marathon without doing any training beforehand. The runner would most likely quit before they even pass the 5 mile marker. Don’t be that guy. When January 1 arrives, we all begin a 365 day marathon, and I want to be sure you are ready for the journey. One great way is to grab my book, The Reseller’s Guide to a Year in FBA: A Month by Month Guide to a Profitable Amazon Business. This resource will help you know exactly what to do and what to avoid for each month of the year.

How about you? What strategies are you implementing to finish strong in 2016? I’d love to hear your ideas, so comment below.

 

10 Things You Need to Know For A Profitable Q4

Q4_logo_on blackQ4. For an online seller, it’s the most wonderful time of the year. Sales and profits seem to go through the roof as more and more people buy stuff online for the holidays. If you’re just assuming that Q4 is going to be great for you but you’re not doing anything differently, then you might miss out on some amazing opportunities to increase your Q4 profits. The following are 10 things you need to know about Q4.

1. For those of you experiencing your first Q4, you might be worrying that your sales have not yet really increased as much as you thought. This is because while the business world sees Q4 as October to December, Q4 for the Profit-graph-260x259Amazon sales world is actually November to January. Don’t worry… Amazon Q4 really starts to gear up in November and will go absolutely crazy in December.

2. While the bulk of Q4 sales happen in December, many sellers (including myself) have found that January can be almost as profitable as December is. As long as you still have lots of inventory, you will still sell a lot in January. Why? Because people are finally going to Amazon and getting what they actually wanted for Christmas. Not only that, but everyone will be using their Amazon gift cards they received on Christmas day. Be sure your inventory is still well stocked for January, so you don’t miss out on the last month of the Amazon Q4.

Screen Shot 2014-10-27 at 5.41.50 PM3. What I deem as acceptable sales ranks for inventory purchases changes a lot during Q4. While I might shy away from a toy ranked 200,000  to 300,000 during the summer, I’ll almost always buy that item as Q4 is approaching. Why? During Q4, the sales velocity increases exponentially. So while a toy consistently ranked 250,000 might sell only twice a month… come December of Q4, that same toy might sell once a day.

4. Many Amazon sellers start to freak out a bit when they get an email from Amazon about their “Holiday Selling Guidelines for the Toys & Games category.” For those who don’t know, Amazon decides which sellers are eligible to sell in Toys & Games category during the holiday season. Sellers worry that they might not be approved to sell toys during the holidays and begin to stress out. One thing that Amazon needs to do a better job of is communicating that these guidelines only pertain to Amazon sellers who are selling MERCHANT FULFILLED toys. If you are selling toys via FBA, then you are automatically approved to sell toys during the holiday sales season. Again, these guidelines only apply if you are mailing your inventory directly to the buyer (merchant fulfilled).

ID-10044546-resize-380x3005. If you reprice your inventory on a regular basis (either manually or with an online repricer) then I might suggest stopping, or at least slowing down. Sales start to increase during Q4 so much that an item that sells for $14 today (early October) might potentially sell for $30 a month from now. Take a moment and research your item on CamelCamelCamel and see if the price of that item tends to go up during Q4. If it does, leave your price alone and make more profits than if you lowered your price. You might even want to raise some of your prices.

6. Many of you wonder if you should try to focus on reselling the toys from each store’s “Holiday Hot Toy” list. My personal plan of attack is to avoid most of these toys. My reasoning is this: If a store tells you what toy will be the “hot” toy this holiday season, then it’s reason enough to assume that the store will be heavily stocked with those particular toys. The toys that you want to find to resell during Q4 are the toys that will be harder to find come December. If you’re interested in learning more about the Q4 strategy that I’m learning and implementing this year, then check out Jim Cockrum’s Proven Q4 Plan.

images-37. Want to save even more money on the stuff you want to sell in Q4? Buy discounted gift cards. I personally love raise.com and cardpool.com, but there are other sites out there that do the same thing. I’ve bought $100 Walgreens gift cards for $75… that’s $25 in free sourcing money! Find other great gift cards from stores like Target, TJMaxx, Tuesday Morning, Big Lots, Walmart, and more! If a store offers gift cards, then most likely you can get some free money to source with by purchasing discounted gift cards.

8. Stock up on supplies! When everyone is in the thick of Q4 madness, you don’t want to suddenly discover that you have run out of 3-inch packing tape, Dymo labels, suffocation warning labels, or any other supply that is necessary to run your business. Stock up today while you have the time.

returns.jpg9. Nobody likes returns, but just remember this: With increased sales come increased returns. There is no avoiding it. There will also be an increase in warehouse and distributor damaged items, as well as warehouse lost items. It’s ok. For most situations, Amazon will reimburse you for the items they lose or damage. Important: Don’t just assume that these reimbursements will be automatic. Make sure that Amazon not only reimburses you for items they lose, but that they also reimburse you for items your customer never actually returns.

10. When Q4 hits, some resellers go into overdrive and spend every waking hour sourcing, buying, prepping, and shipping. They sometimes forget about what’s really important: family. Don’t let the dollar signs blind you. Look around and spend quality time with your family. Remember what the Thanksgiving and Christmas seasons are truly about and reflect upon God’s great gift to us all. When we remember what’s truly important, it gives us the right perspective. And that’s more important than any Amazon payout could ever be.

I hope these ten tips will help you have a profitable and meaningful Q4. If you’d like to share more tips about this most wonderful time of the year, please feel free to comment below. I’d love to hear how you make the most of Q4.

Seller Central Tip #1 – How to Check if “Returned” Items are Actually Returned to FBA

Amazon FBA Returns

It happens probably more often than you know. A customer requests a refund from Amazon but never actually returns the refunded item. Amazon is supposed to automatically reimburse you once 45 days has past, but sometimes Amazon “forgets.” Of course, Amazon doesn’t really forget, but for some reason, these reimbursements are not done 100% of the time. When this happens, it’s up to you to contact Amazon and remind them that they owe you a reimbursement.

When Amazon refunds your customer, Seller Support will send you an email with the subject line “Refund initiated for order.” I always move these emails to a dedicated folder in my email system. Amazon allows the customer 45 days to return the item to Amazon, so it’s a good idea to set up a reminder on your smartphone to check on this item in 45 days.

Ok, so saving these Return Notification emails from Amazon is a good idea, but what happens if you didn’t save that email? Well, you’re in luck because there is another way to see what items have been returned (and why).

1. Login to Seller Central and click on REPORTS at the top of the screen. 
2. Click on the FULFILLMENT link under REPORTS. 
3. Click on RETURNS from the left side column. 

Or you can do this to generate a Returns Report:

1. Login to Seller Central and hover the cursor over REPORTS at the top of the screen. 
2. Click on the PAYMENTS link under REPORTS. 
3. From there filter view by Refund, select the time frame, and click Update. 

Now that we know what items have been refunded to your customers, we need to find out if the item has indeed been returned. Here is how to do that (skip to step 7 if you have the Merchant SKU or ASIN from the above mentioned Returns Report):

1. Look at your Refund Notification email from Amazon and copy the order number. 
2. Login to Seller Central and hover the cursor over ORDERS at the top of the screen. 
3. Click on MANAGE ORDERS. 
4. Click on ADVANCED SEARCH
5. Paste the order number in the search bar and click SEARCH at the bottom of the page. 
6. On the next page, you’ll be able to see exactly which item was returned. From this page copy the item’s Merchant SKU or ASIN. 
7. Now, on the top of the Seller Central page, hover over INVENTORY and click on MANAGE FBA INVENTORY. 
8. Paste the Merchant SKU or AISN in the search bar and click Search. 
9. If you don’t see the item you’re looking for, click the radio button that states “Include Archived Items.”
10. From there you should see if your item is in your inventory (either as fulfillable or unfulfillable). 

Just because the item is not currently in your inventory doesn’t mean that it was never returned to an Amazon FBA warehouse. It could have been returned to your inventory and then sold soon after. So what do you do if you don’t know? Currently, Amazon does not notify you when (or even if) your item has been returned to an FBA warehouse. This last step is up to you.

11. Contact Seller Support and open up a case. 

seller-supportSimply ask them to look into this for you. After I enter in the specific item information, I usually say something like this: “The buyer of this item was given a refund, but failed to return the item to an FBA warehouse. It’s been over 45 days since the refund was given. Please reimburse me the original sales price. Thank you.” Most of the time I’ll get a quick response from Amazon stating that a reimbursement will be issued soon. Some of the time I’ll get a response from Amazon stating something like “this item was returned to Amazon on 5/12/13 and was added to your inventory.” When I see this notification, but my current inventory shows zero, then I know that the item was indeed returned, and then was sold soon after. I can even search all my orders to confirm that it was sold.

How do you handle returns? Any other tips you’d like to share with other FBA sellers?

For more Seller Central Tips, just click here.

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Imagine knowing exactly what to expect in your Amazon FBA business every month of the year.

Imagine what it would feel like knowing you were not missing out on any of the opportunities that will come your way this year. 

Imagine working on your Amazon business knowing exactly what your priorities are, what you need to avoid, and what you need to accomplish during each month to make progress toward making this year your best sales year ever.

Find out more about The Reseller’s Guide to a Year in FBA: A Month by Month Guide to a Profitable Amazon Business today. The package includes a 200-page ebook, monthly webinars, and 4 special bonuses.

How to Handle Amazon FBA Returns & Minimize Loss

Returns. They’re one of the worst parts of running a business, but they’re bound to happen. In fact, with increased Q4 sales, you’ll undoubtedly get more returns. Don’t let the increase in returns worry you. It’s only natural that with more sales come more returns.

When customers request to return a product they bought via FBA, Amazon gives them an immediate refund and a shipping label to return the item to the proper warehouse. Customers are on the honor system to indeed return the item they no longer want, so it’s up to you to check on the item after the customer is given a refund. To find out more about your returned items, log in to Seller Central and then click on Reports > Fulfillment > FBA Customer Returns.

Here are the main “dispositions” (Amazon term) in which a customer will return an item and how to best respond to each:

1. SELLABLE – Items that are returned as “sellable” will be automatically returned to your active inventory. Unless you’re worried that the item is actually not in sellable condition, there is nothing more you need to do once the item is indeed returned to Amazon. If you are worried that the item isn’t really in sellable condition, then open up a removal order to inspect the item yourself. Keep reading below to see what to do when a customer has been refunded but the item is not actually returned.

Amazon.com-worker-David-B-0012. DAMAGED – There are multiple reasons why an item would be returned as damaged. It’s possible that the item was damaged in a FBA warehouse prior to the shipping process to the customer. If the item was damaged in transit, then it’s the fault of Amazon (if the FBA worker did not pack the item well) or it’s deemed as your fault for not bubble wrapping or protecting the item before shipping the item to Amazon. It could also be your fault if you sent an already damaged item to Amazon. If it’s your fault, then there is no reimbursement, but if Amazon is to blame, then you are eligible for reimbursement.

3. CUSTOMER DAMAGED – Items that are returned as “customer damaged” will not be returned to your sellable inventory. “Customer damaged” does not mean that the customer bought the item, broke it, and then is attempting to return it. “Customer damaged” means that the customer opened the item, and it is no longer in new condition. Sometimes the customer says they opened the item, but they never really did and it’s still in new condition. The best plan of action for these items is to open up a removal order and get them sent back to you. From there you can see if the item is worth being resold as new, like new, or very good condition.

damaged-box4. CARRIER DAMAGED – If the item was damaged in transit, then it’s the fault of the shipping company (like UPS, FedEx, USPS, etc) for not taking good care of the package during the shipping process. These returns are ones you should be reimbursed for as it was not your fault the item was damaged.

5. DEFECTIVE – The item was returned to Amazon as “defective” and is either obviously damaged or the customer stated that it is faulty. When this happens, the FBA customer is refunded, but the item stays in your inventory as “unsellable.” The best plan of action here is to create a removal order and have the item returned to you for inspection. Some buyers return an item to Amazon and say it’s defective in order to get free return shipping, but the item is not actually defective. I’ve had many “defective” items returned to me only to find that it’s still in brand new condition, some never even opened. If the item can still be sold, then I send it in to FBA again.

Important: If a customer claims an item is defective but in reality it’s not, then it’s up to you to protect your account and fix this false claim. Too many claims of “defective” can hurt your seller metrics and put your account in danger of suspension. Follow these steps if a customer falsely claims an item is defective in order to get a free return.

return-refund-imageThe majority of customer returns are requested within 30 days of the original purchase. After a refund is granted, the customer has 45 days to return the item to Amazon. But what happens when a refund has been issued, but the item is never returned after 45 days? This is something that Amazon is supposed to monitor. Amazon should automatically reimburse you when an item is not returned, but this is not done 100% of the time. For some reason, some incomplete returns are missed. When this happens, you’ll need to be proactive and request a reimbursement. Just open up a new case with Seller Support and let them know that a refunded item was never returned. Amazon will investigate and eventually reimburse you. It’s your money, so be sure you get it.

Remember, the occasional return is just part of business and is nothing to worry about. Don’t ignore your unsellable returned items as they will just sit in an FBA warehouse and continue to rack up monthly storage fees. Take action and do what you can to get those items to become sellable or, at least, to make sure you get reimbursed for items that were never actually returned.

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A few years ago, I sold a brand new teal colored Gameboy for about $350. A few weeks later I was notified that the item was refunded. I set up a reminder on my smart phone for 45 days later to check on the status of the return. When I found out that the item was never returned, I opened up a case with Amazon and was quickly reimbursed the full sales price. Double checking your returned items is worth your time.

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So what about you? Are you experiencing more returns than normal? Do you have a story about a returned item that you were able to recoup your losses on? I’d love to hear from you in the comments below.