How Amazon Restocking Fees Work

Understanding all of the various Amazon fees is crucial for any seller that cares about making a profit, which we assume applies to everyone. Most of the Amazon fees you need to be aware of are those levied on you—the ones that take a bite from your profits. Amazon restocking fees are the rare type of “fee” that can actually give you a bit of money back. So, of course you want to understand how they work!

What are Amazon Restocking Fees?

Hand putting money into a jar labeled "returns" Amazon restocking fees are another way to describe a partial refund for a return that, for some reason, doesn’t merit a full refund. Your ability to charge customers this fee (meaning, deduct it from the refund you issue) depends on the condition of the product and the details of its return.

Many of Amazon’s policies are oriented toward making sure customers have a great experience, which means their return policy tends to favor the buyer. Yet Amazon recognizes that there are times sellers don’t deserve to swallow the cost of a return. Restocking fees are a nod to that, letting you keep more of the sale price in these select cases.

How Much is the Amazon Restocking Fee?

The Amazon restocking fee is calculated based on the cost of the item. Depending on the type of item and how it was returned, the percentage you can charge for a restocking fee varies from 20% to 100% (although not many cases qualify for that full 100%).

In most cases that qualify for a restocking fee, Amazon’s guidelines let you charge a fee of up to 50%.

When You Can Charge Amazon Restocking Fees

There are a few main scenarios where you have the option to charge customers an Amazon restocking fee:

The customer changes their mind about an order and returns the item in good condition, but not until after the return window (usually 30 days). For a late return where there’s nothing wrong with the item, you can charge a restocking fee of up to 20%.
A customer changes their mind about a purchase, returns it within the return window, but the item is damaged, shows signs of use, or the packaging is open (for media products like CDs and DVDs). In these cases, you can charge a restocking fee of up to 50% of the item’s cost.
For software and video games, if a customer changes their mind about a purchase but opens the package before sending it back, this is the rare case where you can charge a 100% restocking fee. They must be sending it back because they changed their mind though, not because it’s defective.

eCommerce will always involve a certain number of returns. That’s the nature of running a business where customers can’t see the products in person before making a purchase. For the sake of providing a good overall customer experience, most returns don’t qualify for a restocking fee.

When You Can’t Charge an Amazon Restocking Fee

Here are some of the most common scenarios where a restocking fee isn’t allowed:

When the customer changes their mind about a purchase and returns the item in its original condition within the return window.
If the customer refuses the delivery because there’s obvious damage to the item, likely caused in the shipping process. In this case, you can file a claim with the carrier.
If the product is damaged or defective when the customer receives it.
If the item a customer receives is noticeably different from what they ordered (e.g. they ordered a blue tea kettle and got a red one instead).

Some of these scenarios are frustrating for sellers. Having to provide a full refund for issues that aren’t your fault will never feel good. But accepting these returns without issuing the customers a fee is important to providing a good customer experience. That’s something Amazon definitely cares about, and most sellers on the platform value this as well.

How to Get the Benefit of Amazon Restocking Fees

Qualifying for Amazon restocking fees on orders doesn’t mean that they're automatically applied. For any orders you fulfill yourself, you have to take the proper steps to make sure the fee is deducted from the refund you issue.

Amazon recommends waiting to issue a refund for returns until after the return is received. That way, you have time to inspect it and determine if its condition merits a restocking fee. You have to provide the refund within two days of the return being received, so make sure you have a process in place for inspecting returns quickly.

Editor’s note: In June 2023, Amazon announced that you can now grade the condition of the returned item. To do so, go to the Charge restocking fee page and select an appropriate description from the drop-down. Upload a photo of the item and add more details in the comments box to provide further proof of the product’s condition.

If you’re confident a return qualifies for a restocking fee, when you go to issue the refund in your Amazon account, you’ll have the option to select a refund amount. Any time you’re refunding less than the full amount of the order, it’s a good idea to add a note to the buyer explaining why. An explanation reduces the likelihood that you’ll end up dealing with an angry customer’s A-to-Z guarantee claim. If the restocking fee is due to the condition of the item on its return, it’s also smart to snap a picture of it so you have proof.

When to Skip the Restocking Fee

Margins are often tight for Amazon sellers, and you don’t want to let any profits go to waste. But there is a potential downside to charging customers a restocking fee: it creates a negative customer experience while creating more work for you. In some cases, offering a returnless refund or letting the restocking fee slide, especially for low-cost items, can create goodwill and protect your seller rating.

You’ll have to decide when the benefits of providing a better customer experience are worth the costs, but it’s something to consider each time you think about how best to manage a return.