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How to Make Money with Amazon Product Returns!

  Even though it's frequently seen as a drawback, managing product returns is a crucial part of being an Amazon seller. These returns re...


Amazon Product Returns!

Even though it's frequently seen as a drawback, managing product returns is a crucial part of being an Amazon seller. These returns represent the reversal of a successful transaction and can result in a number of issues, such as return fraud and increased costs for processing returns. Although returned merchandise is an unavoidable part of the selling process, many products have untapped potential that can be used to make large profits.


Approximately 12% of purchases are ultimately returned. Depending on the category, this proportion may range from 12–18% for casual clothing to 15-20% for electronics or even up to 35% for high-fashion clothing. This emphasizes the important role played by Amazon's return policy within the larger economy, since it creates a sizable subsystem where goods move against the grain. As a result, this also means that a considerable amount of money is invested in returned goods.


The stack of returned goods in your warehouse typically goes unattended until there is a need to do so due to space restrictions. However, if you use this method, you can be missing out on significant revenues that could be made from these returned goods.


You lose out on prospective income as well as ongoing storage costs if you don't make the most of the value of returned goods. This passive approach ignores the fact that these products may still be highly valuable and may be added back into your selling strategy to make up for losses and generate additional money.


Quick Guide

How can these returned goods be handled?

What about the Amazon product return policy for items that are irreparably damaged?

A variety of seller tools are also made available by Amazon to help in managing these procedures:



How can these returned goods be handled?

It is necessary to employ proactive tactics that prevent accumulation and turn returned goods into valuable assets in order to successfully handle this difficulty. Here's how to handle returned goods successfully:


Prevent Accumulation: As soon as the returns process starts, take immediate action to avoid letting returns accumulate. Keep an eye on returned goods or designate workers to handle the timely transition to the next stage. Quick action avoids the accumulation of a large, difficult-to-manage mound.


Removing Markings and Labels: When returned items are received at your location, take off any Amazon-added LPN stickers or identification labels. While FBM (Fulfilled by Merchant) products may not require this, it ensures that returned FBA (Fulfilled by Amazon) products are prepared for remarketing without the need for further steps.


List the Product Again: If the returned goods are still in brand-new condition, list them again on Amazon as new. Evaluate and rate the state of used or slightly damaged objects, albeit this procedure can take some time. Relisting things as soon as possible in good condition might maximize sales opportunities.


Investigate Other Marketplaces: Don't only stick to Amazon. Think about extending your selling reach to more e-commerce websites like Shop Clues or eBay. You can sell repaired goods with minimal damage as refurbished goods, frequently at a discount, to get rid of inventory and expand your customer base.


Direct Sales to Customers: Depending on your marketing plan, you may choose to interact directly with customers rather than depending entirely on Amazon. This could entail holding sales in the style of an auction or providing goods for less to draw interest. Investigating alternate sales channels becomes crucial if you are selling things that cannot be labelled as new but yet adhere to Amazon's category requirements.


Think about Amazon Alternatives: If you're ok with procedural adjustments, you might want to consider selling on other platforms or engaging with customers directly. This strategy might need to be adjusted, especially if you're an FBA seller. However, it might result in more adaptability and perhaps even more revenues.


What about the Amazon product return policy for items that are irreparably damaged?

When dealing with returned products, retailers face a variety of difficulties, such as perishables that have expired, missing parts, broken packing, and defective products.


There are numerous options available for dealing with a broken product: returning it to the manufacturer, requesting that the manufacturer salvage spare components and discard the remainder, or handling the situation yourself.


Some vendors choose to offer these items, or their components, for less money in neighborhood markets. This strategy resembles refurbishment sales but is carried out by the store as opposed to the manufacturer.


Dealing with returned goods takes a lot of time and work. There is another option to think about, though: hiring specific people to handle product returns or contracting out this work to a third-party company with expertise in Amazon reverse logistics.

A variety of seller tools are also made available by Amazon to help in managing these procedures:

FBA Calculator: Amazon's Fulfilled by Amazon (FBA) Calculator aids merchants in understanding the expenses involved in utilizing Amazon's fulfillment services. Making decisions on returned or resalable goods is made easier with the help of the information it gives on fees, shipping expenses, and prospective profits.


Amazon Keyword Tool: This tool helps sellers make their product listings more visible on Amazon's platform by optimizing them. Sellers can improve their product descriptions and potentially increase sales by choosing more effective keywords to use.


Utilizing Amazon's seller tools can speed up these procedures and aid in the optimization of your returns management plan. Navigating the complexity of returned products necessitates careful consideration of a number of aspects.

See this guide to learn more about the:





Can Amazon goods returns be used to generate revenue?

Returns are a potential resource. Sellers can recoup losses and make money by tactfully relisting, repairing, or remarketing returned goods.


How can I avoid having a backlog of returned goods?

Taking action right away after return initiation is essential. To avoid gathering and storage concerns, promptly process and relocate returned items.


What should I do about faulty goods?

Before relisting FBA items, take off any Amazon labels and markings. Additionally, look into local market sales for broken items or their components.


Can I market my returned goods on sites other than Amazon?

Yes, you can look at other e-commerce sites like eBay, which cater to a wider audience by selling reduced reconditioned or repaired goods.


Is there a way to communicate with customers directly regarding returned goods?


Absolutely. To pique the curiosity of potential customers, you can sell products directly, hold auction-style sales, or provide goods at a discount.


Should I think about contracting out my returns management?

Depending on your scale, outsourcing reverse logistics to a third party or hiring people can speed up the return’s procedure.


How might Amazon's seller resources help you generate revenue from returns?

While the Amazon Keyword Tool optimizes listings for more visibility and sales, the Amazon FBA Calculator assists in estimating costs and potential revenues.


What is the most important lesson to learn from Amazon product returns?

Being proactive is essential. Consider returns as a chance rather than a setback, analyzing them quickly and planning forward to optimize profit possibility.


Are there possible hazards associated with selling returned goods?

Even if there are risks, such as products that don't live up to buyer expectations, careful analysis and accurate listing descriptions can help to address these problems.


Is it possible to maximize profits from various product categories?

Yes, the possibility for profit varies across different product categories. Perishable goods, electronics, and even clothing can all be deliberately handled for profit.



Managing returned goods appears as a complex task and an untapped opportunity in the world of Amazon retailing. Proactive tactics take the lead instead of letting returns build up passively.


Setbacks can be turned into gains by processing returns quickly, removing labels, and relisting products. Increased revenue can be attained by branching out from Amazon's purview, communicating directly with customers, and taking professional assistance into account.

Making decisions is streamlined by using Amazon's tools. Sellers can manage the difficulties, reduce losses, and unlock the hidden potential of returned goods by redefining them from burdens to potential assets. This will strengthen the business environment and make it more robust and lucrative.

Read More:

The Top 7 Ways to Reduce Returns on Amazon

Maximizing Profits through Amazon Product Listing Excellence

 12 Easy Ways to Make Money Online for Women

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