Sellers who enrolled in FBA partial refunds before this update are still offering partial refunds on every eligible return reason. That default stays in place until they change it, even for returns that point to a defective product.
Amazon now lets FBA sellers in seven marketplaces choose which return reasons qualify, either across all ASINs with up to three configurations or for selected ASINs through an Excel upload. Amazon still decides which customers are eligible, which limits how many returns a seller’s settings actually reach.
Illustrative math on a $30 product shows when a partial refund costs less than a full return, and a seller’s own return data shows which reasons are worth enrolling. The update arrives alongside new MCF fee savings of up to 25%, giving sellers and the Amazon agency teams that manage their accounts more control over fulfillment and return costs.
Amazon Now Lets Sellers Pick Which Return Reasons Get FBA Partial Refunds
Amazon announced in Seller Central that FBA sellers can now choose which customer return reasons qualify for a partial refund. Before this change, sellers could choose which products took part, but the partial refund applied to every eligible return reason.
FBA partial refunds let a customer keep a product and get part of the purchase price back instead of shipping it to a fulfillment center. They work like Amazon returnless refunds, except the seller keeps part of the sale instead of refunding the full price.
| Detail | What It Means for Sellers |
|---|---|
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Marketplaces
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US, UK, Germany, France, Italy, Spain, and Canada
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All ASINs option
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Set refunds by return reason, with up to 3 configurations
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Selected ASINs option
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Upload an Excel file with products, reasons, and percentages
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Products or reasons left out
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Follow the standard return process
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Already enrolled
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All eligible reasons stay on until settings change
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Customer eligibility
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Amazon decides, using shopper profile and purchase history
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When Amazon first introduced the program on its Seller Forums, it covered six of these stores, so Canada is the one marketplace not named at launch. Sellers can update return reasons, switch setup options, or turn off specific reasons on the FBA Partial Refunds settings page.
Enrolled sellers see no automatic change, since partial refunds stay active for all eligible return reasons until they update their preferences. Ineligible customers still return items to a fulfillment center as usual, so some returns will follow the standard process regardless of a seller’s settings.
Return Condition Decides Whether FBA Partial Refunds Cost Less Than Full Returns
A seller-focused breakdown of the update answered the question with illustrative math, using a $30 product with a $10 landed cost and $4 in return handling. In that example, a 40% partial refund leaves the seller $8 ahead, while a full return that comes back unsellable leaves the seller $14 behind.f
The math changes when returned units can be resold at full price, because the seller keeps the unit and loses only the $4 in handling. Partial refunds make the most sense for return reasons where units rarely come back in sellable condition, while a standard FBA refund often costs less where they usually do.
Amazon did not list the allowed percentage range in its announcement, so sellers can see the available options on their settings page. A workable percentage reflects the FBA return processing costs tied to each reason, including handling and lost resale value, and reasons that may signal a defect can stay on the standard return process.
The FBA customer returns report lists return reason, ASIN, and condition, which shows how often units come back sellable for each reason. Return rate and refund cost per return show whether partial refunds by return reason are working, and both can shift as a catalog changes.
Amazon Launches MCF Fee Savings of Up to 25% for FBA Sellers in September 2026
The partial refund update follows a separate cost change Amazon announced for Multichannel Fulfillment merchants in September 2026. The new MCF Preferred Pricing Program combines a discount on MCF fees with FBA credits per unit shipped, for savings of 15% to 25% on fulfillment fees during the first six months.
US merchants can also add Prime delivery to their own websites at no cost beyond standard MCF fees. Amazon reports that more than 40% of eligible orders from early adopters shipped with Prime delivery.
Sellers who ran FBA and MCF from one shared inventory pool cut out-of-stock rates by an average of 19% and improved inventory turnover by an average of 12%, according to Amazon. These are company-reported averages, and results vary by seller.
Merchants can enroll in the MCF Preferred Pricing Program through Seller Central, and Amazon applies the discounts automatically when orders ship. The return reason controls for FBA partial refunds are also available now on the FBA Partial Refunds settings page in Seller Central.
