How to Analyze FBA Return Reasons and Reduce Your Amazon Return Rate

Amazon’s FBA return policy is one of the most customer-friendly in e-commerce—which is great for buyers but can quickly cut into a seller’s profit margins.

Returns on Amazon can range from 5% to 15%, depending on the product category. In 2024, Amazon introduced additional fees for products with a return rate higher than their category average, making it more important than ever to monitor why your products are being returned.

By analyzing return reasons and trends, you can: ✅ Identify common product issues (e.g., misleading descriptions, packaging problems). ✅ Reduce return rates by making listing improvements. ✅ Minimize financial losses caused by refunds and unsellable inventory.

Let’s dive into three simple ways to quickly analyze FBA returns and take action without needing third-party tools.

Step 1: Use the Fastest Tools to Hear Directly from Customers

Instead of waiting for returns data to pile up, you can quickly identify product issues using Amazon’s built-in reports.

1️⃣ Voice of the Customer (VoC) Report

The Voice of the Customer dashboard helps you see customer complaints and issues before they turn into excessive returns.

🔹 Where to find it: 1️⃣ Log into Seller Central 2️⃣ Go to Performance > Voice of the Customer 3️⃣ Check Customer Experience Ratings for your ASINs

💡 Why it matters: ✔️ Monitor early complaints before they become refund requests. ✔️ Identify patterns in customer dissatisfaction. ✔️ Act quickly to fix listing issues, product descriptions, or quality concerns.

2️⃣ NSX Report (Negative Seller Experience Report)

The NSX report helps identify customer issues beyond just returns by tracking negative experiences like refunds, negative feedback, and product defects.

🔹 Where to find it: 1️⃣ Log into Seller Central 2️⃣ Go to Reports > Fulfillment 3️⃣ Scroll to Customer Concessions > NSX Report

💡 Why it matters: ✔️ See return patterns by ASIN in real-time. ✔️ Compare your product’s return rate to the category average. ✔️ Fix problems before Amazon flags your listing.

Step 2: Use the FBA Returns Report to Analyze Return Trends

Once you’ve checked VoC and NSX, you can dive deeper into return data with the FBA Returns Report.

🔹 Where to find it: 1️⃣ Log into Seller Central 2️⃣ Go to Reports > Fulfillment 3️⃣ Click Customer Concessions > FBA Customer Returns 4️⃣ Download the report and filter data by ASIN, return reason, and disposition

💡 Why this matters: ✔️ Identify which products get returned most. ✔️ See common customer return reasons (e.g., “Not as described,” “Defective”). ✔️ Track return trends after major sales events like Prime Day.

Step 3: Understanding FBA Return Dispositions

When a product is returned, Amazon assigns it a disposition based on its condition. Some items may go back into inventory, while others must be removed or disposed of.

Amazon’s FBA Return Dispositions:

✔️ Sellable– Item returned in good condition and restocked.

✔️ Damaged/Carrier Damaged– Amazon takes responsibility and compensates you.

✔️ Customer Damaged– Item is unsellable, but damage might be only cosmetic.

✔️ Defective– Product is unsellable due to performance issues.

✔️ Expired – Items near expiration are unsellable and may be removed by Amazon.

💡 Why this matters: If you see too many returns marked as “Defective” or “Customer Damaged,” this could signal a product or listing issue that needs to be fixed.

Step 4: How to Reduce Your Amazon Return Rate

🔹 1. Optimize Your Product Listings A clear and accurate product listing helps prevent misleading expectations that lead to returns. ✅ Use high-quality images – Show different angles & product details. ✅ Write a clear title & bullet points – Highlight key features & specifications. ✅ Add a FAQ section – Address common customer concerns upfront.

🔹 2. Improve Product Quality Frequent “Defective” returns could signal a manufacturing or supplier issue. ✅ Analyze negative reviews – Customers often mention defects in reviews. ✅ Request sample testing – Inspect the quality before restocking. ✅ Consider switching suppliers – If defects persist, it may be time for a change.

🔹 3. Improve Packaging to Prevent Damage Returns marked as “Damaged by Carrier” can often be prevented with better packaging. ✅ Use protective padding – Bubble wrap or air cushions for fragile items. ✅ Ensure sturdy outer boxes – Weak boxes lead to damaged products in transit. ✅ Test your packaging – Drop-test packages to simulate real shipping conditions.

🔹 4. Offer Detailed Sizing Guides for Apparel & Shoes Apparel has one of the highest return rates on Amazon. Many returns happen due to size issues. ✅ Provide accurate sizing charts – Include inches/cm for all sizes. ✅ Show models wearing different sizes – This helps customers gauge fit. ✅ Mention common fit issues – e.g., “Runs small, consider ordering one size up.”

🔹 5. Improve Customer Support Poor customer experience leads to higher return rates. ✅ Respond quickly to inquiries – Answer product-related questions before purchase. ✅ Resolve order issues promptly – Offer solutions before the customer decides to return. ✅ Provide warranty & troubleshooting info – This can prevent unnecessary returns.

Final Thoughts: Turn FBA Returns into Business Improvements

Returns are an unavoidable part of selling on Amazon, but tracking and analyzing return reasons can help you minimize losses and improve customer satisfaction.

📌 Key Takeaways: ✔️ Use Amazon’s Voice of the Customer & NSX report for quick issue detection. ✔️ Check FBA Returns Reports to track trends over time. ✔️ Optimize your product listings & packaging to reduce preventable returns. ✔️ Take proactive steps to improve product quality and the overall buying experience.

By making small, strategic improvements, you can reduce returns, save money, and keep customers happy!

💬 Have you noticed patterns in your FBA returns? What strategies have worked for you? Drop your thoughts in the comments!