A new Partial Refund feature for Fulfillment by Amazon (FBA) sellers has been launched by Amazon. The Partial Refund feature has a smarter way to handle returns without shipping back to the warehouse. The announcement was made on September 29, and the feature is now live in the U.S., U.K., Germany, France, Italy, and Spain, and it applies to non-hazardous and non-hygiene products.
With this feature, sellers will have the ability to give buyers the option to complete a return request by accepting a partial refund of 0-100% without requiring the item to be shipped back to the warehouse. Sellers can turn on or off the partial refund option globally, or at the ASIN level, through Seller Central. Amazon controls buyer eligibility for partial refunds by evaluating the buyer’s purchase and return history.
The goal of this initiative is to reduce reverse logistics costs such as handling, removal, and restocking, while also improving customer experience through faster resolutions. This feature has distinct advantages for sellers of large, fragile, or low-margin products, where the cost to process returns is higher than the resale value. As Amazon stated, sellers have the ability to use this feature alongside the existing “refund-only” program for items priced at $75 or less, providing additional flexibility across various categories.
To get the best results, Amazon suggests that sellers:
- Compare return costs to item value before deciding on a partial refund.
- Set percentage ranges by product type (for example, 25–40% for low-value goods and up to 70% for bulky or damaged items).
- Monitor metrics such as acceptance rate, average refund percentage, margin savings, and claim rates.
For operations, consider creating approval thresholds, like a manager review for refunds over 50%. Tracking reasons for partial refunds can help identify recurring issues.
The Partial Refund feature marks a move toward data-driven returns management. It allows FBA sellers to maintain their margins while keeping customer trust.
For international sellers, Forest Shipping, a freight forwarder based in China, can assist with this transition. They optimize logistics, consolidate removals, and manage cross-border return flows to reduce double handling costs.
