Amazon's 2021 Fee Relief: Cheaper Returns Processing

In brief: the Amazon returns processing fee was cut in 2021. With the pandemic still disrupting trade, Amazon also postponed its annual European fee changes to 1 June 2021. From 1 March 2021, the FBA returns processing fee — charged when a customer returns certain items — was removed entirely for Watches and Jewellery, and for Clothing, Shoes and Handbags it fell to 50% of the item's fulfilment fee. Amazon also extended the reduced referral rate for fashion (clothing, shoes, bags) and expanded FBA New Selection from 1 April 2021 in the UK, Germany, France, Italy and Spain.

What the 2021 returns processing fee changes covered

From	Change
1 March 2021	No returns processing fee on Watches and Jewellery
1 March 2021	Clothing, Shoes and Handbags returns fee cut to 50% of the fulfilment fee
1 April 2021	FBA New Selection expanded
1 June 2021	Annual fee changes take effect (delayed)

A worked example

A clothing seller has 1,000 FBA returns a month on items with a £3.00 fulfilment fee. At 50% of the fulfilment fee, the returns processing fee is £1.50 per return, or £1,500 a month. A jewellery seller with the same volume paid nothing from March 2021.

What it means for your bookkeeping

• Returns cost more than the refund. In categories where it applies, the returns processing fee is an extra cost per return. Track it separately to see the true cost of returns.

• Category matters. The same return costs very different amounts in different categories, which affects product margins.

• Delayed rises still came. The June 2021 changes altered other fees mid-year — compare per-unit fees across that date.

• VAT: fees billed in 2021 used the reverse charge for UK VAT-registered sellers — see VAT on Amazon fees.

• Where it shows up. Returns fees are deducted inside the settlement, so they only appear once you reconcile the settlement line by line.

How TrueBooks helps

TrueBooks posts refunds and each fee type — including returns processing fees — from your settlements to their own lines in Xero, so the full cost of returns is visible. See the Amazon Xero integration.