I never had returns, I am a handmade soft toy maker with small sales numbers as all my products are "really" handmade by me, boutique, products.

Lately I decided to try FBA, hoping to reach the customers more effectively since I'm not in US and I had my first return which is quite surprising since none of my customers returned or complained about my products so far.

The returned item has been identified by Amazon as "damaged by customer" and not saleable.

Fine, but the point is, Amazon doesn't reimburse the seller (as per policy) for the returned items damaged by the customer!

I admit that I was not aware of this detail of the policy (I just presumed what is reasonable, that is if customer damages, they bear the cost).

However, I really can't rationalize, how I can be responsible to refund a customer who returns the item in non-saleable condition, it doesn't make sense at all. If Amazon prefers to refund the customer as a result of their commercial decision, they should do it, not me. In addition to that, I have to bear the cost of removal as well!

One can say that unconditional customer satisfaction is beneficial in long term for me as well but there should be a "logical" limit to that if customer is abusing this policy which I feel is the case this time.