FBA-FC reimbursement rate of damaged product and grade-based reimbursement

For more details on grade-based reimbursement¹², refer to Table 4.

*Effective reimbursement value = (Effective reimbursement rate) x [(Fair market value of unit) - (Amazon SOA and FBA fees)]

Grade-based reimbursements

For certain categories such as Mobiles, Large Appliances and Television, we have launched an improved evaluation process for your customer returned or 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 or 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 authorise us to undertake the appropriate process required for grading of your units. Currently, we provide grade-based reimbursements for Mobiles, Softline categories (Shoes, Apparel, Luggage, Jewelry), 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 a fulfilment centres 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 Mobiles

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.

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, Apparel, 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 Apparel 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.

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

For details on 7, check table 1.

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.

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

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 mobile phones.

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)

Example of 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 of 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 of 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

See also:

• FBA-FC Damaged Inventory Reimbursement policy
• FBA-FC Lost Inventory Reimbursement policy