Watch out online retailers: Amazon changes the rules for FBA refunds

What actually happens if your goods get lost in a shipping center? And what is the best way for an online retailer to deal with this? In the past, a manual application for reimbursement had to be submitted for lost shipments. This is now set to change: From January 2025, Germany and Europe will be subject to a New regulation for all sellers who use the Fulfillment by Amazon (FBA) service. Particularly pleasing: lost goods in Amazon's shipping centers will be automatically refunded at the full retail price in the future.

The background

What is already common practice in the USA is now coming to Europe: Amazon is introducing a new policy for the refund of FBA items in Germany from January 15, 2025. Particular attention will be paid to lost goods. However, other areas are also affected by the changes. We have summarized the most important changes for you:

• Automation and transparency

Amazon promises fast and uncomplicated processing with these new features. As soon as a shipping center reports the loss of an item, the online retailer is automatically notified and receives a refund for the item at the full retail price. Sellers can view the status of the refund process at any time via Seller Central.

• Less bureaucracy, more focus on business

Another important change concerns the processing time for all other manual refund applications. Previously, retailers had 18 months to submit an application. In future, this period will be reduced to 60 days. A thorough goods inspection is therefore in the interests of online retailers.

• International sales: New mandatory disclosures

There is also important news for online retailers who trade their goods internationally and therefore across borders: From the end of 2024, it will be mandatory to indicate the country of origin for all items that are not imported from EU countries.

Conclusion

The new FBA guidelines offer online retailers numerous advantages. Above all, the automated refund for lost goods is an innovation that offers online retailers security, eliminates bureaucracy and thus also saves time and resources. Nevertheless, it remains to be seen how the innovations will prove themselves in practice.