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Amazon's new FBM refund policy will take effect on January 26. How should sellers deal with the risks of returns and refunds?
2026-01-06

Starting January 26, 2026, Amazon will officially adjust its refund policy for FBM (Fulfilled by Seller) orders. While this change may seem like just an adjustment to the refund processing time, it will directly impact refund risks, loss of product value, and SAFE-T claim eligibility for many cross-border sellers who rely on the FBM model.

 

If returns are processed according to the old schedule, they are likely to be automatically refunded under the new policy, with the seller bearing the costs.

 

What are the core changes in the new FBM refund policy, and what should sellers pay close attention to?

 

According to Amazon's official policy, starting January 26, 2026: the refund processing time will be extended from 2 business days to 4 calendar days (including weekends and holidays). If sellers fail to complete the processing within the specified time, the system will trigger an automatic refund.

 

Once an automatic refund takes effect, sellers will lose their SAFE-T claim eligibility (except in special circumstances such as lost returned goods). Furthermore, the new policy only applies to FBM orders that do not use the Amazon Prepaid Returns label; the rules for orders using the RFS (Refund at First Scan) service remain unchanged.

 

These adjustments can all be verified on the Amazon Seller Central refund and SAFE-T policy page, and are explicit rule updates published by the platform.

 

For FBM sellers, the risks haven't decreased; in fact, they've become more concentrated.

 

On the surface, the refund processing time has been extended to four calendar days, but in practice, the risks haven't decreased. The reason is simple: once the time limit is exceeded, the system automatically issues a refund; after an automatic refund, SAFE-T is essentially unable to intervene; the money is refunded before the goods have even been inspected.

 

This is very unfriendly to FBM sellers, especially in the following situations: long transit times for cross-border returns; goods requiring unpacking and quality inspection to determine their condition; high-value or resaleable items. If the return processing speed can't keep up, refund costs will be rapidly amplified.

 

Amazon's official recommended approach is actually quite clear:

 

Based on Amazon's existing rules and the SAFE-T mechanism, the platform doesn't encourage "slow processing," but rather hopes sellers will complete the return verification process more systematically.

 

The official guidelines explicitly encourage sellers to: use the guided refund process and tiered handle returns; complete necessary inspections or status confirmations before issuing refunds; retain complete logistics and delivery receipts as evidence for SAFE-T appeals; and regularly check the SAFE-T page for updates to avoid losing eligibility due to operational delays.

 

However, the problem is that many sellers don't lack the desire to do this, but rather the practical constraints prevent it. For many FBM cross-border sellers, the real challenge lies not in understanding the rules, but in execution: returns are in the US, while sellers are in China; building their own teams is costly; and ordinary overseas warehouses may not be able to meet timeliness and quality inspection requirements.

 

Under the new FBM regulations, return processing speed and quality inspection efficiency directly determine whether a seller will be automatically refunded by the system. This is why more and more sellers are beginning to reassess the value of local US return warehouses.

 

U-Speed US return warehouse helps sellers regain "time."

 

Under the new FBM refund policy, the core value of return warehouses is no longer just "receiving returns," but completing traceable processing actions within the platform's stipulated timeframe.

 

Dual warehouses in the East and West coasts, covering major return regions

 

U-Speed's East Coast (New Jersey) return warehouse has an area of approximately 7,250 square meters and a daily return processing capacity of 20,000+; the U-Speed West Coast (Los Angeles) return warehouse has an area of approximately 7,250 square meters and a daily processing capacity of 10,000+. This dual-warehouse layout reduces cross-regional transit time, allowing sellers to complete critical operations within 4 calendar days.

 

Comprehensive warehouse configuration and security conditions, suitable for multi-category returns

 

U-Speed's US return warehouses are equipped with forklifts, light and heavy-duty shelving, fire protection and monitoring systems, and 24-hour security and CCTV. The safety and stability of warehouse operations make them more suitable for handling high-frequency return processing needs.

 

Timeliness and processes better aligned with the new FBM regulations

 

In terms of personnel and processes, U-Speed adopts a model where the Chinese return business management team leads the operations, while a local Chinese team in the US handles the implementation, reducing communication errors. In terms of timeliness, US return inspections are generally completed within 2 days, with return logistics taking approximately 3-5 days, making it easier for sellers to make refund decisions within the platform's stipulated timeframe.

 

Simultaneously, U-Speed integrates its return service with forward logistics such as first-leg shipping, warehousing, and dropshipping, helping sellers reduce time losses caused by multiple intermediaries.

 

Beyond the US, return processing is also available in many European countries.

 

In addition to US return warehouses, U-Speed also has return warehouse resources in the UK, France, Germany, Italy, Spain, and other countries, assisting sellers in handling cross-border e-commerce returns across multiple marketplaces. This is particularly important for sellers operating in multiple European and American markets.

 

The essence of Amazon's new FBM refund policy is not to give sellers "more time," but rather to require them to handle returns in a more standardized and efficient manner. With the coexistence of automatic refunds and SAFE-T risks, whoever can complete return inspections and process closure faster has greater cost control. For FBM sellers, establishing return processing capabilities in advance is often more important than appealing afterward.