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Partial Refunds for Media Products
The following examples illustrate how refund credits and refund administration fees are calculated for a Media Product.
Example 1: Partial Refund of a single item from an order
Suppose you receive the following single-item order for a book with standard shipping:
Cost of book: $50.00 (item price set by you) + Standard Shipping: $3.99 (rate set by Amazon) Buyer's Total: $53.99 For this order, your proceeds would be as follows:
Product charges: $50.00 ¨C Referral Fee: $7.50 (referral fee of 15%) ¨C Variable Closing Fee: $1.80 (fee for Books products) Note: The closing fee is based on the Selling on Amazon Fee Schedule.
+ Shipping: $3.99 Seller's Total: $44.69 Your total fees for this order would be $9.30 (the Referral Fee + the Variable Closing Fee).
You then issue a partial refund in the amount of $15.00 of the product charges. The amount returned to you is calculated as a percentage of the referral fee, or commission, paid on the product charge, not including shipping. The variable closing fee is retained by Amazon.
Formula for refund credit
$15.00 (partial refund) ¡Â $50.00 (product charge) = 30%
30% (percentage refunded) x $7.50 (amount of referral fee) = $2.25 (credit for refund)
Formula for refund administration fee
The Amazon refund administration fee in this case would be 70% of $7.50, or $5.25, plus the $1.80 variable closing fee, for a total of $7.05.
Example 2: Refund of multiple shipping fees from an order
Because shipping for Media Products is set per item, the shipping amount charged to the buyer cannot be consolidated. If a buyer orders multiple items from you, or multiple quantities of the same item, the buyer will be charged the same shipping rate for each item. In this case, you may want to issue a partial refund to return a portion of the shipping charges to the buyer.
Suppose you receive the following multiple-item order for DVDs with expedited shipping:
1 copy of DVD-1: $20.00 + Expedited Shipping: $6.19 5 copies of DVD-2: $100.00 + Expedited Shipping: $30.95 1 copy of DVD-3 (box set): $75.00 + Expedited Shipping: $6.19 Buyer's Total: $238.33 For this order, your proceeds would be as follows:
Product charges: $195.00 ¨C Referral Fee: $29.25 (referral fee of 15%) ¨C Variable Closing Fee: $9.45 (7 x $1.35 fee for DVD products) Note: The closing fee is based on the Selling on Amazon Fee Schedule.
+ Shipping: $43.33 Seller's Total: $199.63 Your total fees for this order would be $38.70 (the Referral Fee + the Variable Closing Fee).
You would then issue a refund of part of the shipping fees to return $23.33 to the buyer (retaining $20.00 as your actual shipping and handling costs). The amount returned to you is calculated as a percentage of the referral fee, charged on the product price. For Media Products, Amazon does not calculate a referral fee on shipping, instead the referral fee percentage is charged on the product price, exclusive of shipping. In addition to the referral fee, a variable closing fee is applied. The variable closing fee is retained by Amazon when you issue a partial refund.
Formula for refund credit
$23.33 (partial refund) ¡Â $195.00 (product charge) = 11.96%
11.96% (percentage refunded) x $29.25 (amount of referral fee) = $3.49 (credit for refund)
Formula for refund administration fee
The Amazon refund administration fee in this case would be 88.04% (100% - 11.96%) of the $29.25 Referral Fee, or $25.75, plus the $9.45 in variable closing fees, for a total of $35.20.
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