Amazon Restocking Fee – Everything You Need to Know
As Amazon sellers, we deal with returns all the time. Sometimes, buyers change their minds. Other times, they send back used or damaged products. These returns cost time and money. Thankfully, we have a tool to help cover those costs, the Amazon restocking fee. In this post, I’ll explain what a restocking fee is, when we can charge it, how much we can charge, and the new 2025 policy updates that affect us. If you’re a seller looking to protect your business from unnecessary losses, this is for you. What Is the Amazon Restocking Fee? The Amazon restocking fee is a percentage we can deduct from a customer’s refund when they return an item in poor condition or after Amazon’s 30-day return window. This fee helps cover costs like inspecting the item, cleaning or repackaging it, and the loss in value if the product can’t be sold as new. Let’s say a buyer sends back a $100 headset with scratches and no box. Charging a 30% restocking fee means we keep $30, and refund $70. This protects our profit margin and discourages careless returns. As explained in this Forceget article, restocking fees are especially helpful for sellers dealing with electronics, media, or other high-return items. When Are We Allowed to Charge It? Amazon only allows sellers to charge a restocking fee in specific cases. If a customer sends back a product because they didn’t like it or ordered the wrong item, we can charge a fee, but only if the item is returned used, damaged, or late. For example, if someone returned a blender after 40 days or sent back a phone with a cracked screen, we’re allowed to keep a portion of their refund. However, we cannot charge a restocking fee if the mistake was ours. That includes situations where we shipped the wrong item, the product arrived broken due to poor packaging, or the listing was misleading. Amazon wants the process to stay fair for buyers and sellers. For more real-world examples, check out this Amazon seller forum discussion. How Much Can We Charge in 2025? The exact amount depends on the item and why it’s being returned. Amazon sets limits to keep things balanced. We can charge up to 50% for items that are returned damaged or used in a way that reduces their value. For media items like DVDs or video games, where the seal is broken, we can also charge the full 50%. In severe cases, like totally unsellable returns, the fee may be 100%, but Amazon closely watches this. Most other returns fall under a 20% to 30% fee range, especially if they’re just late or missing original packaging. For example, if a $200 tablet is returned with a cracked screen, and we apply a 50% fee, the buyer gets a $100 refund. We retain $100 to cover losses. A full breakdown is available in this SourceMogul restocking fee guide, which is worth checking out if you’re unsure how much to charge per item type. What Changed in 2025? In late 2024, Amazon added a big new rule that became fully active in 2025. Now, whenever we charge a restocking fee for damage, we must provide photo evidence. This means taking clear pictures of the returned product, showing any scratches, missing parts, or broken packaging. We must upload those photos when processing the refund. Amazon uses these images to help resolve disputes and keep things fair. Since this change, many sellers, including myself, have noticed fewer unfair A-to-Z claims. According to ZonGuru, there’s been a 30% drop in such complaints since photo requirements were added. However, this policy does add extra work. I now inspect and photograph each return carefully, but it’s worth it to avoid penalties and lost money. FBA vs. FBM – Who Has More Control? If you sell using FBA, you have less control over restocking fees. Amazon handles the returns and automatically calculates the fee based on item condition. You don’t need to upload photos, but you also can’t adjust the fee yourself. As an FBM (Fulfilled by Merchant) seller, like me, you handle your own returns. This gives you more control; you can inspect each item, decide if a fee is fair, and issue the refund accordingly. But you must also follow the new photo rule and document everything properly. If you’re thinking of switching from FBA to FBM to control more of your returns, make sure you also have a system for tracking photos and communication with buyers. Watch Out for Local Laws Not all countries allow large restocking fees. In California, for example, sellers can only charge up to 20% on non-defective returns. In the European Union, buyers get a 14-day window to return goods with no restocking fee if the item isn’t damaged. As a seller, I always make sure my return policies meet these local rules. If you sell across different regions, you should check your return terms and adjust them as needed. It’s better to be safe than to get flagged by Amazon for breaking local laws. You can read more on Amazon’s official rules here: Amazon Return Policies Best Practices for Using Restocking Fees Restocking fees are about fairness. Overusing them or surprising customers with unexpected deductions can lead to bad reviews or negative feedback. So I always explain the fee clearly in my return messages. If I charge 30%, I show the reason and include pictures of the damage. I also make sure my return policy on my listings mentions restocking fees upfront. This clear, respectful communication helps me avoid complaints and build buyer trust, even when they don’t get a full refund. Use Restocking Fees the Smart Way The Amazon restocking fee is one of the few tools we have to protect ourselves from costly returns. When used correctly, it covers real business expenses and stops people from abusing the return system. With the 2025 update requiring photo evidence, the process is now more secure and fair for everyone. Yes,
