Breakdown of Amazon Return Fees
Returns have a way of really eating your profits. I think this is pretty obvious. You bought an item for $50 and flipped it for $100. Amazon paid you $80. Awesome, you just made $30 and 60% return on your investment (ROI).
Then you get the dreaded email saying that you have a return. Now you are stuck with no profit and just the cost of $50. The item may not be worth $50 anymore and you may not be able to return it to the store to get your $50 back. Uch!
Oh well, hopefully it doesn't happen too much and your overall profit margins can sustain some returns. Otherwise you need to rethink what you are doing.
What you may not realize is that aside from losing your commission, Amazon also charges you fees for handling the return on your behalf.
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Then you get the dreaded email saying that you have a return. Now you are stuck with no profit and just the cost of $50. The item may not be worth $50 anymore and you may not be able to return it to the store to get your $50 back. Uch!
Oh well, hopefully it doesn't happen too much and your overall profit margins can sustain some returns. Otherwise you need to rethink what you are doing.
What you may not realize is that aside from losing your commission, Amazon also charges you fees for handling the return on your behalf.
Fees Associated with Returns
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