For sellers using the FBM (Fulfillment by Merchant) model on Amazon’s U.S. marketplace, return management is set to face new challenges. Previously, many sellers simply provided a U.S. return address, waited for customers to ship items back, and then arranged for quality inspections and subsequent processing. However, with upcoming adjustments to Amazon’s return policies, providing a return address alone may no longer suffice.

According to an Amazon notification and reports from industry media, new requirements for return labels on U.S. FBM orders will take effect on December 18, 2026. Sellers will be required to provide prepaid return labels and process returns within a specified timeframe of 7 calendar days. Orders that fail to meet these requirements may be subject to automatic refunds without the requirement for the customer to return the item. It is reported that heavy or oversized items are currently excluded from these new requirements.

This policy shift necessitates a re-evaluation of return workflows, processing timelines, and cost structures. The focus of return management is no longer merely about providing a return address; it is now about the ability to promptly receive, inspect, and process returned goods to avoid losses in both inventory and revenue.

What are the key changes? Three areas to watch

Based on the policy information disclosed so far, sellers should pay close attention to the following three aspects:

First, the provision of prepaid return labels has become a critical requirement. Sellers can no longer simply provide a return address; they must supply a compliant, prepaid return label as mandated by the platform. Labels provided through external channels that do not meet Amazon’s specific criteria may fail to satisfy compliance requirements.

Second, there is a 7-calendar-day processing window. Sellers must monitor return requests and the platform’s required processing milestones to ensure timely action. Since these are calendar days—inclusive of weekends and holidays—sellers cannot rely solely on a standard business-day schedule for staffing.

Third, failure to meet deadlines may result in automatic refunds without a product return. If a seller does not complete the required actions within the specified timeframe, the customer may receive a refund while keeping the item. For products that still hold resale value, this could lead to additional financial loss. Please note that the specific scope of exemptions for heavy or oversized items, the allocation of responsibility for labeling fees, and the appeals process for exceptional cases should all be determined based on Amazon’s latest official policies and the specific notifications displayed within your seller account. Sellers should review the relevant information in Seller Central well before the new policy takes effect.

Which sellers are most significantly affected?

This policy adjustment has a more direct impact on FBM (Fulfilled by Merchant) sellers on the Amazon US marketplace, particularly the following groups:

First, sellers who utilize overseas warehouses in the US. Even though returns occur within the US, a lack of clear return-handling procedures at the warehouse can lead to issues such as delays in receiving returned items or backlogs in quality inspections.

Second, sellers whose return addresses are located outside the US. Cross-border returns typically involve longer transit times, making it difficult to complete product inspections and make subsequent decisions in a timely manner; these sellers may need to re-evaluate their existing return strategies.

Third, sellers of apparel, footwear, home goods, and small household appliances. Products in these categories are prone to issues like sizing mismatches, damaged packaging, or missing accessories. Failure to promptly assess the condition of returned items can result in unnecessary refunds and inventory losses.

Consequently, sellers should break down their return process into specific operational steps—defining who is responsible for monitoring the seller portal, receiving returned goods, conducting quality inspections, and authorizing actions such as issuing refunds, relabeling, or repackaging.

Refund without return, or recover the inventory? Calculate your costs first.

In light of these new return requirements, not every item is worth recovering; conversely, you shouldn't simply abandon valuable inventory just to avoid processing fees.

For low-value items, if the costs of prepaid return labels, reverse logistics, and quality inspections approach or exceed the item's residual value, it may be more economical to issue a refund without requiring a return. However, for high-value items—or those that can be refurbished or reconditioned for resale—recovering the inventory is often a more viable option worth considering.

Sellers should carefully compare these two approaches.

The cost of a "refund without return" primarily includes the refund amount and the loss of the inventory itself. The cost of recovering an item includes return shipping, quality inspection, repackaging, and subsequent inventory handling—all of which should be weighed against the potential resale value of the recovered product. If a returned item can still be sold at a reasonable price, it may be more cost-effective to recover it—even after accounting for processing fees—rather than simply abandoning it.

Sellers are advised to establish a cost-accounting mechanism based on individual SKUs. Prioritize the assessment of high-value items and those with high return rates, rather than applying a one-size-fits-all processing strategy to every order.

How should sellers manage the return process within the 7-day timeframe?

Following the implementation of the new policy, sellers should proactively establish a standardized return-handling workflow to ensure that internal coordination issues do not cause them to miss the platform’s deadlines.

First, designate specific personnel to regularly monitor return requests in Seller Central, ensuring timely verification of the reasons for return, applicable rules, and relevant processing deadlines.

Second, ensure that return labels comply with platform requirements and complete all necessary actions promptly. Simply sending a label via an external channel or providing a return address is not sufficient to meet the platform’s requirements.

Third, coordinate in advance with a local U.S. return warehouse to clarify the procedures for receiving items, conducting quality inspections, providing status updates, and determining subsequent handling. For high-value items, prioritize verifying the product’s condition to quickly decide whether it is worth recovering.

Finally, implement a tracking mechanism for exceptional orders—such as those nearing their deadline, items that have not yet been shipped back by the customer, or cases where the quality inspection results are in dispute—to ensure they are reviewed in a timely manner.

It is important to note that sellers must adhere strictly to the specific start dates and operational requirements stipulated by Amazon; do not assume that the 7-day processing window applies uniformly to every stage of the return process after the item reaches the warehouse.

U-Speed US Return Warehouse: Helping Sellers Optimize Local Return Processes

Under the new return policy, local U.S. return-handling capabilities will become a critical component for FBM (Fulfillment by Merchant) sellers looking to optimize their after-sales processes.

U-Speed’s US return warehouse provides cross-border e-commerce sellers with local return-handling support, including receiving returns, quality inspections, relabeling, and repackaging. Sellers can arrange for product inspections and subsequent handling based on their specific business needs, allowing them to stay informed about the actual condition of returned items.

For eligible products, once they have undergone quality inspection, relabeling, or repackaging, sellers can evaluate the potential for resale. For items that are damaged or have other issues, appropriate follow-up actions can be taken based on the inspection findings. By utilizing local return processing, sellers can reduce the complexities of cross-border logistics, gain timely visibility into the status of returned items, and facilitate inventory recovery.

It is important to note that the receipt and quality inspection services provided by a return warehouse do not automatically ensure full compliance with all of Amazon’s operational requirements. Sellers remain responsible for monitoring notifications in their seller account, providing compliant labels on time, and ensuring that all processes adhere to the platform’s rules.

From return addresses to processing capabilities, sellers must prepare in advance.

Amazon’s new FBM (Fulfillment by Merchant) return policy for the U.S. marketplace creates a tighter link between return labels, processing timelines, and the disposition of returned goods. For sellers, the focus should not merely be on a return address, but on optimizing the entire workflow—from the initial return request to the final handling of the product.

Before the new policy takes effect on December 18, 2026, sellers are advised to review platform rules, verify label configurations, calculate return costs for various SKUs, and secure local U.S. return processing resources.

By effectively integrating return turnaround times, cost control, and inventory recovery, sellers can meet platform requirements while minimizing unnecessary losses. Leveraging the local receiving, quality inspection, relabeling, and repackaging services offered by U-Speed’s US return warehouse, sellers can refine their return management processes and stay well-prepared for both peak seasons and routine after-sales operations.