For Amazon sellers, returns are not merely a matter of issuing refunds; they also entail costs related to reverse logistics, product inspection, repackaging, and inventory recovery. For items with a low unit price, large dimensions, or those that are difficult to resell once returned, the cost of recovery can sometimes exceed the item's remaining value.

Recently, Amazon introduced new settings for FBA (Fulfillment by Amazon) partial refunds, allowing sellers to configure partial refund rules based on the reason for the return provided by the buyer. This enables sellers to evaluate different return scenarios with greater precision, helping them decide which items are better left with the buyer and which are worth the effort of recovery and processing.

However, it is important to note that "partial refund" does not automatically mean that all returns can be handled as "refund without return." A truly sound decision should be based on a comprehensive assessment of the product's value, the costs associated with the return, and the potential for future sales.

What has changed with the new settings? Sellers can now configure rules based on return reasons.

According to an announcement released via the Amazon Seller Central platform in October 2026, FBA sellers in the U.S., U.K., Germany, France, Italy, Spain, and Canada can now set partial refund rules based on the return reasons selected by buyers.

Sellers have two configuration options:

First, they can set rules that apply to all ASINs, configuring specific partial refund schemes for different return reasons (up to three distinct configurations are supported). Second, they can upload an Excel file for specific ASINs to define the applicable products and corresponding return reasons.

If a seller is already enrolled in this program, their existing settings for return reasons will remain in effect. Therefore, sellers should review their current configurations to ensure they do not inadvertently continue using previous settings without fully understanding the current rules.

Furthermore, eligibility for a partial refund is still determined by Amazon, based on factors such as the buyer's profile and purchase history. Even if a seller has configured these rules, it does not guarantee that every buyer will receive a partial refund; orders that do not meet the criteria will continue to be processed through the standard return procedure.

The significance of this change lies in the ability for sellers to manage return costs more strategically, rather than applying a "one-size-fits-all" approach to every product.

Which products are suitable for a "refund without return" policy? Consider these three key factors.

Not all products are appropriate for a partial refund strategy. Sellers can categorize returns into three types based on product value, recovery costs, and the potential for resale.

Category 1: Low-value items with high recovery costs. Examples include certain low-priced standardized goods or small accessories. If the product’s value is low—to the point where the total cost of cross-border return or local processing approaches or exceeds the item's remaining value—a "refund without return" policy may be more economical. However, the appropriateness of this approach should be evaluated by considering the product cost, the refund percentage, and the platform's specific policies.

Category 2: High-value items suitable for resale. This includes products such as certain consumer electronics, branded apparel, and footwear. If an item has significant value and can be resold after quality inspection, relabeling, or repackaging, allowing the buyer to keep it could result in unnecessary losses. For these items, it is better to assess their residual value after recovery before deciding on the best course of action.

Category 3: Items with defects, missing parts, or quality-related disputes. If a product has only minor flaws that can be reasonably addressed, sellers can compare the costs of offering a partial refund versus recovering and processing the item. In cases involving significant damage, functional failure, or quality disputes, the decision should be based on the product's condition, the determination of liability, and platform requirements—rather than relying solely on the stated reason for the return.

Sellers can use a simple formula to evaluate their options: Expected Net Value of Recovery = (Estimated Recovery Value of the Product) – (Reverse Logistics Costs) – (Quality Inspection and Refurbishment Costs) – (Subsequent Transportation and Warehousing Costs).

If the expected net value of recovery is lower than the net gain from a "refund without return" policy, the latter may be the more cost-effective choice. It is important to factor in the partial refund amount, the product procurement cost, and other actual expenses; do not base your decision solely on a comparison of shipping costs.

When setting up partial refund rules, keep these key details in mind.

In Seller Central, sellers can navigate to the FBA-related settings to access the partial refund feature. From there, you can configure which products, return reasons, and refund percentages the policy applies to, based on the options available for your specific account.

Before taking action, it is recommended to complete three checks.

First, review your existing configuration. If you are already enrolled in a program, your previous rules may still be in effect; do not assume that new settings will automatically optimize your costs. Next, categorize products by type. The recovery logic for low-value items differs from that of high-value goods; it is advisable to evaluate specific ASINs individually rather than applying a blanket "refund without return" policy to all products.

Finally, conduct regular data reviews. Sellers should continuously monitor return rates, the cost of processing individual returns, and resale rates to ensure that new policies are genuinely reducing total costs—rather than simply decreasing the number of returned packages.

How can inventory recovery efficiency be improved for items that must be returned?

For products not suitable for a "refund without return" policy, robust return processing capabilities remain essential. U-Speed’s UK and the US return warehouses provide local support for cross-border e-commerce sellers, offering services such as receiving, quality inspection, relabeling, and repackaging based on specific business needs.

For eligible items, sellers can determine the next steps—such as preparing them for resale—based on the results of quality inspections. For items that are damaged or otherwise compromised, sellers can assess whether they are worth repairing, repackaging, or disposing of through other appropriate channels.

Local return processing allows sellers to gain timely insights into the actual condition of their products, avoid unnecessary cross-border shipping, and make informed decisions about how to handle each item based on its value.

Please note that the feasibility of reselling an item depends on the actual quality inspection results, platform policies, and the product's condition.

Effective return management is about finding the right balance between cost and value.

Amazon allows sellers to configure "partial refund" rules for FBA returns based on the reason for the return, offering greater flexibility in cost management. However, this does not mean that a "refund without return" policy is appropriate for every product.

For low-value items with high recovery costs, it is worth calculating the economic viability of a "refund without return" approach. Conversely, for high-value items that retain sales potential, the focus should be on quality inspection, refurbishment, and inventory recovery.

True return management is not merely about reducing the number of returned packages; it is about selecting the most appropriate handling method based on the value of each product. By combining "partial refund" rules with local return processing services—such as those offered by U-Speed’s US and UK return warehouses—sellers can manage return costs with greater precision, minimizing unnecessary expenses while maximizing the residual value of their inventory.