How the Amazon Returns Processing Fee Works for UK Sellers in 2026

In brief: Under the Amazon returns processing fee UK 2026 rules, FBA products pay extra when their return rate is above a threshold set for their category. You pay for each returned unit over that threshold, from £1.70 for the smallest envelope. Clothing, accessories and footwear work differently: the fee is 50% of the product's fulfilment fee. Rates here are from the rate card effective 1 July 2026.

Amazon returns processing fee UK 2026: rates by size tier

Selected UK rates per unit returned above the threshold, outside clothing, accessories and footwear:

Size tier and shipping weight	UK fee
Light envelope, up to 20 g	£1.70
Light envelope, up to 100 g	£1.93
Standard envelope, up to 460 g	£1.99
Small parcel, up to 150 g	£2.22
Small parcel, up to 400 g	£2.27
Small parcel, up to 900 g	£2.35
Standard parcel, up to 400 g	£2.32
Standard parcel, up to 2.9 kg	£2.83
Small oversize, up to 760 g	£2.98
Heavy oversize, up to 31.5 kg	£10.97

The full table runs to special oversize items at up to £34.84. A group of named categories, such as Mattresses and Home Linen and Rugs, uses a separate parcel table built on 100 g steps. That table was first charged on 1 February 2026.

How the return rate is measured

Amazon looks at the units shipped in one month. It then counts how many of those came back during that month and the two months after. Only returns above the category threshold are charged. Amazon doesn't print the thresholds on the rate card, so check your product's figure in Seller Central.

The effect is a delay. March shipments can't be measured until the end of May, so their fee arrives in a later settlement.

A worked example

An illustrative example: a seller ships 1,000 units of a small parcel product weighing between 150 g and 400 g, in a category outside the separate 100 g-step table, in March. By the end of May, 110 have come back, an 11% return rate. Assume the category threshold is 8%.

• Allowed returns: 1,000 × 8% = 80
• Charged returns: 110 − 80 = 30
• Fee: 30 × £2.27 = £68.10 before VAT

That £68.10 relates to March sales but could appear in a June settlement.

What it means for your bookkeeping

• Give it its own line. Sellers usually post the fee to an FBA fees account, or a separate "returns processing" account if returns are a problem (agree the structure with your accountant). That way a rise is visible rather than buried in fulfilment costs. Our FBA bookkeeping guide suggests a fee account structure.
• VAT is standard. Since 1 August 2024, UK seller fees billed by Amazon carry 20% UK VAT, reclaimable as input tax if you're VAT-registered, using the invoice as evidence. See how to reclaim VAT on Amazon seller fees.
• Refunds and fees sit in different periods. The customer refund reduces sales, and output VAT, in the period it happens. The fee for the same return may land two or three months later.
• Watch month-end profit. Because the fee trails the sale, a busy month can look more profitable than it was. Ask your accountant whether to accrue an estimate at the period end.
• Match it by product. When you reconcile a settlement, trace a sudden fee back to the product and shipment month. Keep the rate card and your returns report together.

Do you need to do anything?

Review return reasons for any product near its threshold. Better images, sizing notes or packaging can cut returns, and each avoided return above the threshold saves the fee.

How TrueBooks helps

TrueBooks posts every settlement line to Xero with the right UK VAT, with referral, FBA, storage, advertising and other fees on separate lines, so each settlement matches the bank deposit. See the Amazon Xero integration.