AMAZON'S NEW RETURN & DAMAGE POLICY UPDATE - MAY 22 2025

Amazon has recently introduced a new section in FBA settings called "FBA Returns Evaluation & Ownership Settings." This update gives you more control over how Amazon handles returned and damaged items, which can directly impact your reimbursements, sellable inventory, and customer experience.

Here's what's new

1. Returned item evaluation

Amazon used to automatically check returned items to see if they could go back into your sellable inventory.

Now, you get to decide:

• Let Amazon check all returns (default setting)
• Let Amazon check only specific products (you upload a list)
• Don't allow Amazon to check any return; everything gets marked "unsellable" and removed

Why this matters:

If you sell items that are often returned in good condition (like electronics or clothing), it's better to let Amazon evaluate them. But if you sell health, beauty, or personal items, it might be safer to mark all returns as unsellable.

2. Damaged inventory ownership

When Amazon damages your inventory, it usually takes ownership and reimburses you.

Now you can choose:

• Let Amazon continue owning and reselling damaged items (default)
• Choose which products Amazon can own
• Keep ownership of all damaged inventory, but you won't get reimbursed

Why this matters:

If you're okay with Amazon reselling damaged items (like on Warehouse Deals), you can leave the default on. If you want to protect your brand or don't want your items sold that way, you may want to take back control, but you won't be reimbursed.

3. Returnless resolutions

This means Amazon refunds the customer without asking them to return the product.

You can now choose:

• Offer returnless refunds for all ASINs
• Offer it only for specific ASINs
• Turn it off completely (default)

Why this matters:

Returnless refunds work well for low-cost items or things that are hard to resell. However, enabling it across all products can lead to higher losses or abuse.

What Amazon sellers should do now

• Check your current settings under Fulfillment by Amazon settings.
• Think about your product types — Are they resellable? Sensitive? Low-cost?
• Decide what makes sense for the 3 options (or let us help you choose).
• Upload CSV files to enable or disable the settings for specific SKUs.

We recommend reviewing these settings now, as they can affect your bottom line, reimbursement eligibility, and inventory handling.

If you'd like help reviewing or updating your settings, our Amazon consultants are here to guide you.