2026 US Fee Policy · Free Tool

Know what Amazon returns
actually cost you.

Since January 2026, Amazon charges a per-unit returns processing fee on every category once your return rate crosses its threshold. Estimate your monthly exposure, annualized loss, and Frequently Returned Item badge risk — before the charge shows up on your settlement report.

No sign-up required. Rates reflect Amazon's published 2026 US rate cards.

Returns Processing Fee Calculator

Model one SKU. Inputs are never sent anywhere — all math runs in your browser.

Units shipped in the measurement month. Fewer than 25 units/month is exempt from the fee.

Returns received within 3 months of shipment ÷ units shipped. Amazon attributes returns on this rolling window.

Apparel & Shoes have no threshold — every return is charged, but at a lower per-unit rate card.

Returns per month
Chargeable units (above threshold)
Fee per returned unit
Estimated monthly returns processing fee
Estimated annualized loss
Calculation assumptions
  • Fee = chargeable units × rate-card fee for your size tier, where chargeable units = (return rate − category threshold) × units shipped, rounded up.
  • Apparel & Shoes: no threshold; all returns are charged from the apparel rate card.
  • Exemptions not modeled: fewer than 25 units shipped/month, FBA New Selection (first 20 returns waived), returns caused by Amazon's own errors.
  • This is the returns processing fee only. It excludes refunds, sunk outbound fulfillment fees, refund admin fees, and unsellable inventory — your true cost per return is typically 3–5× the processing fee.
  • Amazon measures return rate on a 3-month rolling window; recent months are provisional.

Frequently asked questions

The short version of how the 2026 policy works.

What is the Amazon returns processing fee?
A per-unit charge Amazon deducts when your return rate exceeds the threshold for your product category. It applies to every category except Apparel and Shoes, which are charged on every return at a lower rate. The fee is billed between the 7th and 15th of the third month after shipment, which is why most sellers never connect it to the SKUs that caused it. Since January 15, 2026, it uses a dedicated rate card by size tier and shipping weight — it is no longer equal to the FBA fulfillment fee.
What does the "Frequently Returned Item" badge do to my sales?
When an ASIN runs above its category threshold, Amazon can display a "Frequently returned item" badge on the listing. Agency analyses report conversion drops of 20–50% on badged listings — typically far more costly than the fee itself. The effect compounds: lower conversion depresses organic rank, which raises ad dependency and TACoS. Treat the badge threshold as the real alarm line, not the fee.
How can I lower my return rate?
Most excess returns are expectation problems, not quality problems. The highest-leverage fixes are listing-side: real dimensions next to a familiar object, size charts for anything worn or fitted (including phone cases and covers), 10+ images showing actual use and scale, video (shown to cut "not as described" returns by 23–31%), and a monthly review of your return-reason data to map causes to specific listing elements. A practical monitoring rule: set an internal alert at 80% of your category threshold — that gives you roughly a 30-day window to act before fees trigger.
Are there exemptions?
Yes — three. Products shipping fewer than 25 units in a month are exempt that month. FBA New Selection waives the first 20 returned units for new-to-FBA parent ASINs (within 180 days of first inventory receipt). Returns caused by Amazon's own fulfillment errors don't count toward your return rate at all. None of these help an established ASIN running above threshold, which is the situation most sellers are actually in.