Optimizing Amazon Vendor Agreements and Pricing
Transcription
You have several options from which to choose when it comes to the handling of your returns, you can choose to not have any returns, which is a lot less effort and administration, but can result in a higher damage allowance percentage on your agreement. You can choose to accept any returns with no maximum or minimum value stipulated, which can greatly reduce your damage allowance percentage on your agreement.
show moreOr you can choose to accept some returns, which you can specify, perhaps you would only like to receive damaged products so that you can have your quality control department run investigations on them in order to improve production of the ASIN, or perhaps you wish to accept overstocked product returns only in which case you can negotiate a percentage of overstocked ASIN.
For example, if the ASIN is 20% overstocked, you will accept the return. Regardless of which of the above options you end up choosing and how you specify them, you would still be liable for the damage allowance agreement and would need to factor this into your initial custom model per ASIN, before uploading your product catalog onto vendor central, running a variety of custom models with damage allowance, percentages ranging from 2% for full acceptance of all returns all the way up to 6% or 7%.
For no returns whatsoever will enable you to make the best decision for your business with Amazon before agreeing to a return policy with Amazon on the setup of your account with them.