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FBA-FC Reimbursement Rate of Damaged Product and Grade Based Reimbursement

Table 1. Reimbursement Rate for all products
Table 1. Reimbursement Rate for all products
Category Product For units returned before Febuary 01, 2020 For units returned after February 01, 2020, and before January 18, 2021 For units returned on and after January 18, 2021
Effective Reimbursement Rate Effective Reimbursement Rate Effective Reimbursement Rate
Music Music 10% 10% 10%
DVD DVD 10% 10% 10%
Giftcards Gift Cards (Email/Physical) 0% 0% 0%
Wireless Cellular phones 30% 30% 30%
Smartphones 30% 30% 30%
Wireless Accessories Batteries 45% 45% 25%
Bluetooth headset 25% 25% 25%
Cases and covers 25% 25% 25%
Screen protectors 25% 25% 25%
Data Cables 25% 25% 25%
Others 25% 25% 25%
Office Products Office Products 45% 45% 45%
Apparels Apparels 28% 28% 28%
Apparel Eyewear Grade based reimbursement Grade based reimbursement 58%
Shoes Shoes 26% 26% 26%
Watches Watches 31% 31% 31%
Jewellery Jewellery 25% 25% 25%
Luggage Luggage 40% Grade based reimbursement12 Grade based reimbursement12
Large appliances Air Conditioner 35% 35% 35%
Refrigeration 35% 35% 35%
Washing Machines 35% 35% 35%
Dishwashers 35% 35% 35%
Cooking Applicances (Microwaves and Ovens) 50% 50% 50%
Others 50% 50% 50%
Electronics & PC Laptops/Notebooks/Desktop/Netbooks 25% 25% 25%
Tablets 45% 45% 45%
Other Electronics & PC Products0 25% 25% 25%
Camera Point & Shoot Cameras 37% 37% 37%
DSLR Cameras 37% 37% 37%
Pocket/Traditional Video 45% 45% 45%
Camera 45% 45% 45%
Handsfree/Professional Video Camera 45% 45% 45%
Others1 25% 25% 25%
Home Entertainment Televisions (LCD/LED/Plasma) 55% 55% 55%
Others2 25% 25% 35%
Personal care appliances All personal care appliances 32% 32% 32%
Toys All Toys 47% 47% 47%
Books All Books 35% 35% 76%
Sports Cycles3 50% 50% 63%
Apparels4 33% 28% 28%
Shoes5 33% 26% 26%
Other Sports Products6 33% 33% 52%
Software All software products 55% 55% 55%
Home Improvement All Home Improvement products 52% 52% 52%
Lawn & Garden All Lawn & Garden products 35% 35% 35%
Digital text Digital text 0% 0% 0%
Digital Accessories Digital Accessories 0% 0% 0%
Digital Devices Digital Devices 0% 0% 0%
Video Games Game CDs 60% 60% 60%
Headphones & Headsets 72% 25% 25%
Consoles & Accessories 72% 72% 56%
Tyres Tyres 65% 65% 65%
Automotive Other Automotive products (except Tyres)7 36% 36% 36%
Home Other Home Products(Except Lighting)8 30% 30% 27%
Bedsheets, towels, curtains9 30% 28% 18%
LED Lighting and Battens 60% 60% 60%
Other Lighting10 60% 60% 45%
Mirror 30% 30% 75%
Clock 30% 30% 50%
Pillows 30% 30% 37%
Kitchen Small Appliances 60% 60% 51%
Floorcare 45% 45% 34%
Arts, crafts, and sewing 60% 60% 45%
Home Environment 50% 50% 38%
Other Kitchen Products11 32% 32% 49%
Baby Products Baby Products 47% 47% 47%
Beauty Beauty 72% 72% 72%
Grocery Grocery 72% 72% 49%
Musical Instruments Musical Instruments 72% 62% 57%
Pet Products Pet Products 72% 72% 72%
Drugstore Drugstore 72% 72% 72%
Other category (Default Rate) 25% 25% 25%

For more details Grade based reimbursement12, check Table 4.

Note:
  • The above mentioned rates/value are final and inclusive of any taxes (as applicable). No extra reimbursements (apart from the above mentioned rates/value) will be given for any particular disposition or damage type.
  • We will reimburse* you based on our estimate of fair market value less FBA and Selling on Amazon fees that are applicable to the item as a percentage of reimbursement rates mentioned in table above.

*Effective reimbursement value = (Effective Reimbursement rate) x [(Fair Market Value of unit) - (Amazon SOA and FBA Fees)]

Table 2. Table 2. Category/GL WiseDetailed Product List
Table 2. Category/GL WiseDetailed Product List
Category/GL Products
Other Electronics & PC Products0 Communications, Mobile electronics, accessories and others Electronics products
Camera(Others)1 Lenses, Filters, Film Cameras, DSC Accessories, DVC Accessories, Digital Frames, Commercial and Home Security & Surveillance, Telescopes, Binoculars, Microscopes and others
Home Entertainment(Others)2 Televisions, Media Players, VCR, Home Theater Projectors, Home theatre in a box, Soundbars and other home entertainment products
Sports (Cycle)3 Road Bikes, Adult Trikes, Mountain Bikes, Balance Bikes, Recumbent Bikes, Comfort Bikes, Folding Bikes, Electric Bicycles, Other Bikes
Sports (Apparel)4 Weight Lifting Gloves, Shirts & Polos, Exercise & Fitness Tops, Goggles, Gloves, Accessories, Softball Tops, Tops, Exercise & Fitness Bottoms, Swimsuits,Soccer Fangear Apparel, Swimming Caps, American Football-Fangear, Clothing, Socks, Soccer Tops, Polos & T-Shirts, Other Leagues, Vests, Golf Bottoms, Training suits, Boats & boating, Tactical Bottoms, Outerwear, Shirts, Triathlon Bottoms, Pants & Shorts, Head & Wristbands, Swimming Tops, Cycling Gloves, Triathlon Tops, Tights, Caps, Running Tops, Outdoor Lifestyle Tops, Jump Robes, Sweatband Wrist, Chest & Body Protective Gear,Hats, Caps, Visors, Beanie, Rainwear Bottoms, Seats and Saddle Covers,Equestrian Tops, Basketball Bottoms, Golf Tops, Yoga Bottoms,Visors & Masks,Balls, Underwear, Hunting Accessories,Jackets,Sunglasses,Dance Tops, NFL, Yoga Tops,Pants and Shorts,Softball Bottoms,Outdoor Lifestyle Bottoms, Bags,Sports Bras, T-Shirts & Tops,Jackets, Vests & Coats,T-Shirts & Polos, Triathlon One Piece,Pants,Hand and Foot warmers,Boating Bottoms,Shorts,Baseball Tops,Hiking Bottoms,Running Bottoms, Tracksuits, Swimming One Piece, Cheerleading, Baselayer Tops,Snow & Ski Tops, Hunting One Piece, Team jerseys & Sets, Baselayer Bottoms,Hats & Caps, Football Bottoms, Martial Arts Bottoms, Lacrosse Tops, Polos, Sports Jackets & Blazers, Tennis Tops, Snow & Ski Bottoms, Skirts,Fishing Tops, Hiking Tops, Cycling Tops, Night Vision, Suits,Tactical Tops, MLB, Hunting Bottoms, Swimming Bottoms, Equestrian Bottoms, Tees, Jerseys & Team Jerseys, Tennis Bottoms, Basketball Tops, Shirts & Blouses, Dance Bottoms,Wrestling Bottoms, Tennisskirts, Coats, Teamjerseys & Sets, Baseball Bottoms,Climbing Gloves,Dresses,Cycling Bottoms, Team Jerseys & Jersey Sets, Outdoor Lifestyle One Piece,Jackets & Vests, Children's Clothing,Yoga Mats, Skateboarding Tops, Hunting Tops,Pants long,Soccer Bottoms, Hats, Lacrosse Bottoms, Wrestling Tops, Hockey Tops, Cold Weather Accessories, Gymnastics One Piece, Rainwear Tops, Sweatshirts, Martial Arts Tops, Skateboarding Bottoms, Hockey Bottoms, Football Tops, Baselayer One Piece, Gymnastics Bottoms
Sports (Shoes)5 Shoes, Roller-skates,Footwear (Not Shoes), Boots, Field Hockey Shoes
Sports (Other Sports Products)6 All other sports products except those mentioned in Cycle, Apparel, Shoes
Automotive7 Automotive accessories, clothing, helmets, equipment & tools, merchandise, chemicals, parts, accessories and all other automotive products
Other Home Products (Except Lighting)8 All other Home products except those mentioned in Bedsheets, towels, curtains, LED Lighting and Battens, Other Lighting, Mirror, Pillows, and Clock
Home(Bedsheets, Towels and Curtains)9 Fabrics, Cushion Covers, Curtain Linen, Aprons & Gloves, Slipcovers, Bedsheets and Pillow Covers, Towels, Shower Curtains, Aprons, Tablecloths & Runners, Bedding Sets, Kitchen Towels, Bed Skirts & Shams, Sheets and Pillow Covers, Curtain Linen, Tablecloths & Runners, Bedspreads, Mop - Cloth, Kids Bedding, Pillow Cases
Home (Lighting)10 Floor Lamps, Torches, Table Lamps, Lamp Bases, Desk Lamps, Lighting Fixtures, Clip /Sticking Lamps, Lamp Shades, Portable Lights, Seasonal Lights/Decorative Lights
Kitchen (Other Kitchen Products)11 All renewed items and all other kitchen products except those mentioned in Small Appliances, Floorcare, Arts and Sewing and Home Environment above
Kitchen (Small Appliances) Blenders, Bread Machines, Can Openers, Coffee Machines, Contact Grills, Convection Ovens, Deep Fryers, Electric Cookware, Electric Tea Pots and Water Boilers, Espresso Machines, Flat Grills, Food Processors, Food Steamers, Grinders, Hand Mixers, Ice Cream Machines, Juicers, Microwave Ovens, Rice Cookers, Slow Cookers, Specialty Electrics, Stand Mixers, Toaster Ovens, Toasters, Waffle Irons, Refrigerators, Rotisseries, Electric Knives, Slicers, Sharpeners, Lamps, Mixer Grinder Juicers, Cooktops - less than 4 burners (Electric), Cooktops - More Than 4 Burner (Electric), Misc
Kitchen (Floorcare) Upright Vacuums, Canister Vacuums, Robotic Vacuums & Accessories, Accessories, Handheld Vacuums, Electric Brooms, Irons, Ironing Boards and Accessories, Steamers, Floor Polishers, Carpet and Upholstery Cleaners, Floorcare Other, Vacuums Outlet
Kitchen (Arts, crafts, and sewing) Sewing Machines, Embroidery Machines
Kitchen (Home Environment) Portable Air Conditioners, Fans, Coolers, Heaters, Air Purifiers, Humidifiers, Dehumidifiers, Air Purifier Filters, Humidifier Accessories, Weather Stations, Water Heaters, Home Environment Other, Water Purifiers and Accessories, Voltage Stabilizers
PC Tablets, Laptops, Computer peripherals, computer storage, memory, Computing components & Networking and all other PC products
Wireless Accessories Service plans, warranties, car kit/chargers, clips/holsters, Bluetooth speakerphones and Headsets, antennas & boosters, battery, data cables, screen protectors cases and other wireless accessories
Video Games Game CDs, Consoles and Accessories

Note: We will not reimburse any further claims for missing mobile phone accessories.

Grade based reimbursements

For certain categories such as Mobiles, Large Appliances and Television, we have launched an improved evaluation process for your customer returned/rejected products that are deemed unsellable. As part of this new process, your customer returned/rejected unsaleable units will be graded to ascertain their status/condition when they are received at Amazon fulfilment centres. With this grading information, you will be able to make faster and better decisions for recovering value from this inventory. To provide you such service, you authorize us to undertake the appropriate process required for grading of your units. Currently, we provide grade based reimbursements for Mobiles,Softline categories (Shoes, Apparels, Luggage, Jewellery), Home Improvement category, Toys, Sports category ( Cycle and Others), Kitchen category (Other Kitchen Products), Home category, Large Appliances ( AC, Washing Machine, Refrigerator, Chimney, Cooler, Microwave) and Television. If a mobile phone is returned to an FC where we do not have grading process set up, we consider the reimbursement rate to be 30% of Fair Market Value and process payout accordingly minus the FBA and Selling on Amazon fees.

Grade based reimbursements for Mobile phones

As part of the inventory grading process for mobile phone units, we will:

  • Perform a six-sided visual inspection to check for scratches or dents or missing accessories or manuals.
  • For open-box products, check the functionality of the products. For example for mobile phones we will run a test using a mobile application to diagnose the mobile phone unit to verify basic functional elements like camera, screen, speakers, microphone and Wi-Fi are in working condition.
  • Perform a visual inspection of the outer packaging.

Based on the result of this process, we will categorise the unit into one of the five grades as shown in Table 3 below and attach a colour-coded sticker on the manufacturer packaging or box to identify corresponding the grade for a unit.

Table 3. Table 3. Definition of item grades and corresponding colour codes for mobiles
Table 3. Definition of item grades and corresponding colour codes for mobiles
Item Grade Grade Description How to identify item grade on physical unit? Effective reimbursement rate2
A+
  • Item package has company/brand seal intact but the outer packaging may have dents or blemishes.
Look for a Green sticker with the letter "A+" on the original package. 0%
A
  • The company/brand seal has been opened but the mobile phone unit does not have physical damage or blemishes.
  • The mobile phone unit passes the functional testing process. .
  • All accessories present and pass the functional testing process.
Look for a Yellow sticker with the letter "A" on the original package. 15%
B
  • The company/brand seal has been opened and the unit may have minor physical damage or blemishes and passes the functional testing process.
  • Accessories may be missing or may have failed the functional testing process.
  • Example, mobile phone has small scratches on the back cover or has a missing charger.
Look for an Orange sticker with the letter "B" on the original package. 25%
C
  • The company/brand seal has been opened and the mobile phone unit does not pass the functional testing process.
  • Example, mobile phone camera is not functioning.
Look for a Red sticker with the letter "C" on the original package. 0%
BER1
  • Mobile units that have significant damage.
  • Example, mobile phone unit is received completely broken into pieces or mobile phone has a cracked screen that may need to be replaced
Look for a Black sticker with the letters "BER" on the original package. 95%
Note:
  • Effective reimbursement rate2 is the rate of reimbursement that Amazon will provide for damages to seller inventory.
  • BER1 is defined as Beyond Economic Repair.
  • We will not reimburse any further claims for missing mobile accessories.
  • Units that are defective or damaged by distributors or sellers is not eligible for reimbursement. Grade C is tagged as a Defective Return since the unit did not pass the functional testing process for mobiles.

Grade based reimbursements for Softlines, Kitchen (Other Kitchen Products), Home Improvement, Toys, Home and Sports (Cycle and Others)

As part of the inventory grading process for shoes, apparels, luggage and jewellery, here forward referred to as softlines, we will:

  • Perform a six-sided visual inspection to check for scratches or dents or missing accessories.
  • For open-box products, check the functionality of the products. For example for luggage, we will check if the zippers are working. Similarly for products like apparels we will check if the unit has any blemishes or tear.
  • Perform a visual inspection of the outer packaging.

Based on the result of this process, we will categorise the unit into one of the 2 grades as shown in Table 4 below.

Table 4. Table 4. Reimbursement rate that will be considered for items graded at Amazon fulfilment centres
Table 4. Reimbursement rate that will be considered for items graded at Amazon fulfilment centres
Category Item Grade Effective reimbursement rate before February 05, 2021 Effective reimbursement rate on or after February 05, 2021
Apparels A 10% 10%
B 28% 28%
Shoes A 10% 10%
B 26% 26%
Luggage A 10% 10%
B 40% 40%
Jewellery A 10% 10%
B 25% 25%
Other Kitchen Products1 A Flat Reimbursement Rate7 22%
B 49%
Home (Bedsheets, towels, curtains)2 A Flat Reimbursement Rate7 10%
B 18%
Home (LED Bulbs and Battens) A Flat Reimbursement Rate7 23%
B 60%
Home (Other Lighting)3 A Flat Reimbursement Rate7 10%
B 45%
Home (Pillows) A Flat Reimbursement Rate7 18%
B 37%
Home (Clock) A Flat Reimbursement Rate7 13%
B 50%
Home (Mirrors) A Flat Reimbursement Rate7 12%
B 75%
Home (Other Home Products – Except Lighting)4 A Flat Reimbursement Rate7 10%
B 27%
Home Improvement A Flat Reimbursement Rate7 17%
B 52%
Toys A Flat Reimbursement Rate7 25%
B 47%
Sports ( Cycle )5 A Flat Reimbursement Rate7 20%
B 63%
Sports ( Others )6 A Flat Reimbursement Rate7 20%
B 52%

For details on 1,2,3,4,5,6, check Table 2.

For details on 7, check table 1.

Note: Before January 18 2021, Eyewear were graded in the same way as apparels and were paid reimbursements as the same rates as apparels . ( A : 10%, B: 28%) . From January 18th, 2021, we have moved Eyewear to Flat Reimbursement with the rate of 58% .

Grade based reimbursements for H&B Items

H&B consists of TV and Large Appliances (AC, Washing Machine, Refrigerator, Chimney, Cooler, Microwave, Dishwasher)

As part of the inventory grading process for H&B units, we will:

  • Perform a six-sided visual inspection to check for scratches or dents or missing accessories or manuals.
  • For open-box products, check the functionality of the products. For example in Washing Machine, we switch it on and check that it is running it in all cycles or not.
  • Perform a visual inspection of the outer packaging.

Effective March 1, 2020, we have modified the reimbursement rate of H&B (TV, AC, Washing Machine, Refrigerator, Chimney, Cooler, Microwave, Dishwasher) units as shown in the table below.

Table 5. Table 5. Grades, their corresponding Reimbursement Rates and colour codes for H&B units graded at Amazon fulfilment centres
Table 5. Grades, their corresponding Reimbursement Rates and colour codes for H&B units graded at Amazon fulfilment centres
Category Item Grade Grade Description How to identify item grade on physical unit? Effective Reimbursement Rates
Large Appliance (Washing Machine, Refrigerator, Chimney, Cooler, Microwave, Dishwasher ) A+ Item package has company/brand seal intact but the outer packaging may have dents or blemishes Look for a Green sticker on the original package 0%
A Brand/Generic seal opened; minimum box damage; no parts missing and has all accessories like TV wall mount, proper base/wheels (eg. case of refrigerators). The company/brand seal has been opened and the unit may have minor physical damage or blemishes and passes the functional testing process Look for a Yellow sticker on the original package 10%
B

Accessories may be missing or may have failed the functional testing process. The company/brand seal has been opened and the Outer box and inside packaging majorly damaged

Look for an Orange sticker on the original package 35%
C The product does not pass all functional test Look for a Black sticker on the original package 0%
BER Example, TV unit is received completely broken into pieces or mobile phone has a cracked screen that may need to be replaced. Look for a Black sticker on the original package 90%
Television A+ Item package has company/brand seal intact but the outer packaging may have dents or blemishes Look for a Green sticker on the original package 0%
A Brand/Generic seal opened ; minimum box damage; no parts missing and has all accessories like TV wall mount. The company/brand seal has been opened and the unit may have minor physical damage or blemishes and passes the functional testing process Look for a Yellow sticker on the original package 10%
B

Accessories may be missing or may have failed the functional testing process.

The company/brand seal has been opened and the Outer box and inside packaging majorly damaged
Look for an Orange sticker on the original package 35%
C The product does not pass all functional test. Look for a Black sticker on the original package. 0%
BER Example, TV unit is received completely broken into pieces or mobile phone has a cracked screen that may need to be replaced Look for a Black sticker on the original package 90%

Grade based reimbursements for Laptops:

As part of the inventory grading process for Laptops, we will:

  • Perform a six-sided visual inspection to check for scratches or dents or missing accessories or manuals.
  • For open-box products, check the functionality of the products. For example, for laptops we will run a test using an application to diagnose the laptop unit to verify basic functional elements like screen, speakers are in working condition.
  • Perform a visual inspection of the outer packaging.

Based on the result of this process, we will categorise the unit into one of the four grades as shown in Table 6 below and attach a colour-coded sticker on the manufacturer packaging or box to identify corresponding the grade for a unit

Table 6. Table 6. Definition of item grades and corresponding colour codes for Laptops
Table 6. Definition of item grades and corresponding colour codes for Laptops
Item Grade Grade Description How to identify item grade on physical unit? Effective reimbursement rate2 on or after February 05, 2021
A
  • The company/brand seal has been opened but the laptop does not have physical damage or blemishes.
  • The laptop unit passes the functional testing process. .
  • All accessories present and pass the functional testing process.
Look for a Yellow sticker with the letter "A" on the original package. 10%
B
  • The company/brand seal has been opened and the unit may have minor physical damage or blemishes and passes the functional testing process.
  • Accessories may be missing or may have failed the functional testing process.
  • Example, laptop has small scratches on the back cover or has a missing charger.
Look for an Orange sticker with the letter "B" on the original package. 25%
C
  • The company/brand seal has been opened and the laptop unit does not pass the functional testing process.
  • Example, webcam is not functioning.
Look for a Red sticker with the letter "C" on the original package. 0%
BER1
  • Laptop units that have significant damage.
  • Example, laptop unit is received completely broken into pieces or laptop has a cracked screen that may need to be replaced.
Look for a Black sticker with the letters "BER" on the original package. 90%

Note:

  • Effective reimbursement rate2 is the rate of reimbursement that Amazon will provide for damages to seller inventory.
  • BER1 is defined as Beyond Economic Repair.
  • We will not reimburse any further claims for missing mobile accessories.
  • Units that are defective or damaged by distributors or sellers is not eligible for reimbursement. Grade C is tagged as a Defective Return since the unit did not pass the functional testing process for mobiles.

We will reimburse you based on the grade based reimbursement rate as a percentage of our estimate of fair market value less FBA and Selling on Amazon fees that are applicable to the item. The aforementioned grade based reimbursement rate values will be applicable to units which are eligible for reimbursement under FBA Damaged Inventory Reimbursement Policy

The effective reimbursement value is calculated as shown below:

Effective reimbursement value = (Effective Reimbursement rate) x [(Fair Market Value of unit) - (Amazon SOA and FBA Fees)

Note: The reimbursement value is final and inclusive of any taxes (as applicable). No extra reimbursements will be given for any particular disposition or damage type

Example for mobiles

Assume the Fair Market Value of a mobile phone is estimated to be INR 25,000, total Amazon SOA and FBA fees are INR 1,000 and the mobile phone is graded as C, then the effective reimbursement value will be calculated as:

Current Reimbursement Value = (0%) x [(25000 – 1000)] = INR 0

Example for softlines

Assume the Fair Market Value of a shoe is estimated to be INR 1,200, total Amazon SOA and FBA fees are INR 200 and the shoe is graded as A, then the effective reimbursement value will be calculated as:

Current Reimbursement Value = (10%) x [(1200-200)] = INR 100

Example for H&B

Assume the Fair Market Value of a Refrigerator is estimated to be INR 20000, total Amazon SOA and FBA fees are INR 2000 and the Refrigerator is graded as A, then the effective reimbursement value will be calculated as:

Current Reimbursement Value = (10%) x [(20000-2000)] = INR 1800

Note: To prevent further degradation and improve the value recovery for your graded units, we recommend that you remove these units on a fortnightly basis from Amazon fulfilment centres. You may use the “Auto Unsellable Removal” feature to auto-schedule your unsellable inventory removal creation. Click here for help in setting up an automated removal.

See also:

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