Amazon cancelled sale /return 20% admin charge

Re-useCom

A thread on the Amazon sellers forum titled "20% admin charge for cancelled listing" shows emails from Amazon saying a cancelled sale or return (full or partial) incurs a 20% admin charge (up to £5 ) to an Amazon marketplace seller.

Other sellers do not see how this can be legal. Perhaps posters on here can comment as to legality as sellers are forced by DSR law to refund, so why should amazon profit greatly from it?

Like bank charges, the 20% fee is massive compared to their costs as it is all done electronically by software

The charge does not appear as titled 'admin charge' so presumably it is hidden in with other charges.

Amazon have not replied as to how long this has been charged

I quote Amazon customer service email below(Non -BMVD means everything except books /music /vid / dvd's)

"There are associated fees involved in processing a refund that I would like to make you aware of.

When you create a FULL refund for a non-BMVD Product, Amazon retains 20% of the original order-related fees, up to a maximum of £5, for each line item in the refund. This amount is retained as an administrative fee. These fees are applied on a per-order basis, based on category. If an order contains items from multiple categories, the fees will be calculated for each item instead of the entire order.

When you create a PARTIAL refund for a non-BMVD Product, Amazon retains 20% of the original order-related fees, up to a maximum of £5, for each line item in the refund and credits you with a proportional amount of the Referral Fee originally charged for the order based on the percentage of the item price refunded to the buyer.

Please note also: If you refund a single item in an order, Amazon retains no more than £5 as an administrative fee. If you refund two different items in an order, Amazon retains up to £5 for each item, for a maximum of £10 as an administrative fee. Because the Referral Fee is applied to each individual order line-item, when you refund multiple quantities of a single item, Amazon retains no more than £5 for that line item as an administrative fee.

"Refunds for BMVD orders

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When you create a full refund for a BMVD Product, Amazon will return all original order-related fees. When you create a partial refund for a BMVD Product, Amazon retains the Variable Closing Fee and credits you with a proportional amount of the Referral Fee originally charged for the order, based on the percentage of the item price refunded to the buyer. For Individual sellers, Amazon also retains the £0.99 (incl. VAT) Per Item Closing Fee.

Refunds for non-BMVD orders

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When you create a full refund for a non-BMVD Product, Amazon retains 20% of the original order-related fees, up to a maximum of £5, for each line item in the refund. This amount is retained as an administrative fee. These fees are applied on a per-order basis, based on category. If an order contains items from multiple categories, the fees will be calculated for each item instead of the entire order.

When you create a partial refund for a non-BMVD Product, Amazon retains 20% of the original order-related fees, up to a maximum of £5, for each line item in the refund and credits you with a proportional amount of the Referral Fee originally charged for the order based on the percentage of the item price refunded to the buyer.

Please note also: If you refund a single item in an order, Amazon retains no more than £5 as an administrative fee. If you refund two different items in an order, Amazon retains up to £5 for each item, for a maximum of £10 as an administrative fee. Because the Referral Fee is applied to each individual order line-item, when you refund multiple quantities of a single item, Amazon retains no more than £5 for that line item as an administrative fee.


If you issue a concession, Amazon does not credit you with any portion of the Referral Fee it received in connection with the order because concessions are not refunds of order costs."

soolin

Is BMVD the scheme where sellers basically run their own shops on Amazon?

the_lunatic_is_in_my_head

BMVD = Books, Music, Video & DVD

Never heard this before, unless one could demonstrate it's an unfair term Amazon would be in the clear.

Re-useCom

BMVD is the media category, books, music, video & dvd's. This does not attract the 20% amazon admin charge.

Everything else (non-BMVD) sold on amazon by third party marketplace sellers, which is the scheme you mention (which I think I read accounted for up to 40% of Amazon income) ie. electronics /toys attracts a 20% admin fee for fully or partially cancelled sales,