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How to deal with FBA Refund due to Undeliverable Shipping Address?

How to deal with FBA Refund due to Undeliverable Shipping Address?

Selling on Amazon has always been a perk for the sellers but since a couple of days ago, the FBA sellers are feeling inconvenience in managing the returns and refunds that is disappointing them. If you have participated in the Amazon community or Amazon seller forum, you can see the various FBA sellers are complaining about the refunds initiated by Amazon to the customers when it finds an undeliverable shipping address. Though Amazon initiates the refunds for the customer’s welfare and to serve them satisfactorily yet the Amazon sellers are not satisfied with it as it is affecting their profit margin.

Let’s hear what the issue is and what the Amazon sellers are complaining?


About 85% of customers are requesting returns and refunds because they are not getting the orders. Every now and then the sellers are seeming to face such issue and talking about. FBA says that while dispatching the products to customers, it finds the shipping address remaining no longer exists and therefore it has to refund the customers as they are not getting their ordered products. customer. But, on the other hand, Amazon is incurring charges as FBA servicing charges to FBA sellers even their items are returned and not sold out. This is affecting seller’s progress, sales and overall profit.

On the other hand, Amazon sellers say that:

  1. Most of the FBA sellers are complaining that there is around 80-85% of orders that are returning back due to non-existing shipping address making the sellers pay the FBA fees to Amazon.
  2. Amazon is troubling its sellers by initiating refunds to its customers in case of undeliverable shipping address which is in turn affecting their ROI and profit margin.
  3. There is a problem at customer’s side while providing the address so why do they need to pay for them? This is troubling the shopping and selling experience on Amazon. 
  4. The sellers say that customers are not providing the right address while ordering their product because of which both the parties are experiencing hassles.
  5. The sellers have legal points and reasons for the asked returns and refunds and expect that Amazon should understand them and scrutinize the case legitimately and should not deduct any charges when they are faultless. Though Amazon is fair but most of the time it is in side with its customers more than its sellers.
  6. Many sellers shared their experiences saying that while refunding to the customers, they had to more charges than the actual price of the items (item price to customers and servicing charge to Amazon).  

After analysing various cases on Amazon, we have come up with the possible reasons that are leading to drastic refunds and returns issues on Amazon.

Look at the following Reasons for Returns and analyze your case:

  1. The main reason for returns and refunds that have been appearing in many cases is wrong information about the address. Customers might have misspelt or miswritten the address, thus creating hassles to the delivery boy of Amazon. Thus, Amazon calls it as undeliverable shipping address that might not exist.
  2. Customers might have relocated to another address but forgot to mention it on their Amazon account while ordering the products. This will obviously result in no delivery and customers will ask for the refund.
  3. Since most of the people are working so they prefer to provide their office address so that they can pick the products timely. Also, it becomes easy for the delivery boys too to deliver the products. Giving home address and not becoming available in home causes trouble in the order receiving. But, sometimes the person might have switched from the company and the order is arriving at the previous organization. The receptionists would not be going to take the order. 
  4. Another reason responsible for refunds can be- most of the time, the buyers give multiple orders to reach $30 or more for being eligible for free shipping despite the fact that they want only one item. The buyers are wise enough and they trick the sellers by mentioning fake addresses to different products and give only the correct address for the product they want. This saves them to pay extra shipping charges from their account but the failure of other items delivered to an unreachable or fake address demands returns. 

How Can Sellers save them from such cases?

Many Amazon sellers have asked us that is there any solution to save them from such hassles of returns and refunds. Our experts of Amazon service providers have shown them solutions that are helping them to deal with frauds orders or buyers address change.

Implement few points while you dispatch your order and save yourself from being indulged into any issues.

  1. Confirm every order before delivery whether the buyer has made an authentic order or not. Else most of the time, customer reject the order receiving saying that they had not made the order. 
  2. Ask your delivery boy to confirm the address before dispatching the order. In case if the buyer has relocated, ask for the newer address. 
  3. Check the authenticity of the address provided before making the order ready for dispatch.
  4. Make a call before directly reaching to their address and confirm their availability to take their orders. 
  5. To be safer, Amazon sellers can ask for the address proof from the buyer. This will reduce the fraud address cases to the larger extent.
  6. In any case, if the customer appears faulty, make a policy to charge a fine as no refund, half-refund or some part of the item price. This will make customers become more attentive while making their order and giving their information.
  7. Resolve every case as per the Amazon guidelines so that you can be saved from infringing the Amazon return and refund policies else you might need to pay to Amazon.  Proper intera
  8. Handle your customers and maintain the polite communication with them. Proper interaction with the customers solves half of the problem at the very first step. 

Wrap Up:

Since a couple of days, FBA sellers are facing Refund issues for undeliverable shipping addresses affecting their sales graph and profit while online selling. Also, dealing with such issues troubles them mentally, financially and consumes most of their valuable time. Therefore, the Amazon experts suggest the Amazon sellers deal every issue calmly and wisely. Though Amazon has its guidelines and authentic behaviour for its sellers and it respects their rights so in any case if you find yourself right and correct, Amazon listens to its sellers and resolves every issue in a legitimate way. Afterall, Amazon wants its sellers to be the best in every other online marketplace.  

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