Amazon has introduced a significant update to its Fulfilled-by-Merchant (FBM) return policy, temporarily adding UPS as a shipping option for its Prepaid Return Label (APRL) program. This move aims to provide sellers with more flexibility and cost-effective solutions for handling returns.
UPS Joins as a Return Shipping Option
The new UPS return option applies to items weighing less than 15 ounces with a girth under 130 inches. The trial period will extend through November 1, 2022, as Amazon evaluates the impact of this change on FBM sales. Notably, Amazon will continue covering the cost difference between UPS and USPS return labels, automatically refunding eligible price discrepancies by December 1, 2022.
Understanding Return Shipping Costs
Amazon calculates return shipping fees based on the carrier-measured weight and dimensions at the time of shipment:
- Small packages (under 15 oz, girth below 130 inches): Buyers may choose UPS or USPS. USPS fees use actual weight, while UPS uses billable weight (the greater of actual weight or dimensional weight). Sellers can claim refunds if UPS costs exceed USPS rates.
- Larger packages: Fees always use billable weight calculations.
Additional Fees to Consider
Sellers should be aware of potential surcharges:
- UPS Large Package Surcharge: Applies when length plus girth exceeds 130 inches or length surpasses 96 inches, with minimum charges of $122.50.
- UPS Additional Handling Fees: Minimum $15.31 charges for non-standard packaging, cylindrical items, oversized packages (over 48" longest side or 30" second-longest side), or packages exceeding 50 lbs or 105" length+girth.
Maximum Package Limitations
Amazon enforces strict size limits: packages cannot exceed 150 lbs, 108" in length, or 165" length+girth. Items surpassing these thresholds won't qualify for prepaid return labels.
Strategic Recommendations for Sellers
This policy change presents an opportunity for FBM sellers to optimize return operations. Key actions include:
- Verifying accurate product dimensions and weights in seller inventory
- Monitoring Amazon's shipping rate updates
- Selecting the most cost-effective return method for each product category
Amazon maintains confidentiality regarding specific rate information, requiring sellers to comply with the Amazon Services Business Solutions Agreement terms.