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Returns Processing Fee

Also known as: Return Processing Fee, High Return Rate Fee

The FBA returns processing fee is a per-unit charge Amazon applies to products with high return rates (and to all apparel/shoe returns), introduced June 1, 2024.

Effective June 1, 2024, Amazon charges a returns processing fee on FBA products whose monthly return rate exceeds a category-specific threshold. The fee applies per returned unit above that threshold and is sized like a fulfillment fee — by product category, size, and weight (rates broadly ranging from about $2 to over $11 per unit).

Apparel and Shoes are treated differently: they have no return-rate threshold, so a fee is charged on every returned unit in those categories regardless of how high or low the return rate is. Products that ship fewer than ~25 units per month are generally exempt, and the fee is billed on a delayed schedule (months after the returns occur).

The returns processing fee turns high return rates into a direct, escalating cost, making it a strong incentive to fix the root causes of returns — inaccurate sizing, misleading images, poor quality, or wrong expectations set by the listing. It is separate from the loss of the unit itself and from any returnless refund.

Worked example

A clothing SKU sells 500 units and gets 60 returns in a month. Because apparel has no threshold, Amazon charges the returns processing fee on all 60 returned units, on top of the lost margin on those orders.

See it in action

Model return costs in margin