We sold a particularly high-value internal computer component back in April, which the buyer decided to return. The stated return reason is "No longer needed", and the buyer's only comment is that it didn't fit. The item arrived back to us and is critically damaged, such that it will no longer function. This is a seller fulfilled order, and the return resolution is "StandardRefund". No refund has been issued yet.

After reaching out to Selling Partner Support, I was told the following:

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* If the returned item is used, damaged, or incomplete, you are encouraged to initiate a partial refund through Seller Central > Orders > Manage Returns. The amount to refund is decided by the you.

* Photographic evidence is required to be submitted and it is recommended that the photos be shared with the customer through the Buyer-Seller Messaging system.

* If the box is returned empty or contains different items, you can decline the refund by submitting a 100% restocking fee refund through Seller Central > Orders > Manage Returns.

* Defective items that are returned in used condition, for example, with signs of wear or wash, can be declined for refunds. You can inform the customers by providing photographic evidence through the Buyer-Seller Messaging system. Decline the refund by submitting a 100% restocking fee refund through Seller Central > Orders > Manage Returns.

* Damaged items that are returned in damaged condition qualifies for a full refund as the original condition cannot be determined.

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Up until this, my understanding has been that we're required to issue at least a 50% refund even if the item is damaged beyond usability. According to this message from support though, it sounds like we should be safe to close the return without issuing a refund, and that we just need to inform the buyer. The item is effectively worthless due to the damage, so we don't want to refund anymore than the absolute minimum. I just also know if we do the "wrong" thing Amazon will take the full amount from us and deny any subsequent appeals (Which I'm sure they have every incentive to push us to do).

I also can't seem to get a straight answer as to the way to go about this if it is an option. Last I was told on the phone by Selling Partner Support, we should just complete the return without issuing a refund, then be prepared for an A-Z claim. However, during this process I've also been told that we should charge a 100% restocking fee from the "issue a refund" screen. If anyone knows which way is the better option between charging a restocking fee and declining to refund, please reply to this thread.

I'm hoping some of y'all have found a good way through this type of situation. As much as I'd like to just deduct the full 100%, I don't trust selling partner support for a second with our A-Z claim defect rate. Any thoughts or recommendations?