Amazon FBM Return Policy Update 2026

The End of the High-Value Exemption: Surviving Amazon’s 2026 Return Policy

If you ship your own orders (FBM) to avoid FBA fees, you likely enjoyed the control it gave you over returns—especially for expensive products. Amazon has decided that “Customer Consistency” matters more than “Seller Control.” Effective February 8, 2026, the High-Value Return Exemption is eliminated. Combined with a tighter refund window starting January 26, 2026, FBM sellers are about to face the same “Auto-Return” reality that FBA sellers have dealt with for years. What is Changing? Mandatory Prepaid Labels  Previously, if an item was over ~$100, you could handle the return manually. You could send your own insured FedEx label. Now, Amazon generates a UPS or USPS label automatically. The Risk: These standard labels often have minimal insurance. If a $1,000 item breaks on the way back, you cannot file a claim with UPS because Amazon is the account holder. You must file a claim with Amazon (SAFE-T), which is a much harder battle. The 4-Day “Action” Window Amazon’s PR says they are “reducing the refund cycle to 7 days.” But the rule that affects you is the 4 Calendar Day processing window (formerly 2 business days). Day 0: Item Delivered to you. Day 4: You MUST issue a refund or charge a restocking fee. Day 5: Amazon Auto-Refunds the customer 100% of the sale price. Note: “Calendar Days” includes weekends. If a return arrives on Friday, your deadline is Tuesday. Who Is Still Exempt? Check your catalog. If you sell in these categories, you can breathe a sigh of relief (for now): Handmade: Custom items are too complex for auto-returns. Certified Pre-Owned Watches: Verification is required. Dangerous Goods (Hazmat): Requires specific labeling Amazon’s system can’t generate. Heavy/Bulky: Items that can’t fit on a standard UPS truck. Your Action Plan: The “Defensive Receiving” Protocol You can no longer prevent the return. You can only defend your money after it arrives. Step 1: The “Quarantine” Zone Create a specific area in your warehouse for FBM returns. Do not mix them with general inventory. Step 2: Evidence Gathering You need Proof of Condition. Photo of the shipping label (readable tracking). Photo of the unopened box (checking for damage). Photo of the item out of the box (verifying serial numbers). Pro Tip: If the serial number doesn’t match what you shipped, DO NOT REFUND. File a SAFE-T claim immediately for “Materially Different Item.” Step 3: The Restocking Fee If the item is opened, used, or damaged, you are entitled to charge a restocking fee (usually 20-50%). You must apply this within the 4-day window. If you wait for the auto-refund, you lose this right. Where Big Internet Ecommerce (BIE) Fits In SAFE-T Claim Specialist: We handle the bureaucracy. We know exactly which photos and keywords Amazon’s investigators need to see to approve a reimbursement claim. Policy Audits: We review your catalog to ensure any “Heavy/Bulky” or “Hazmat” items are correctly flagged in the backend so they remain exempt from this policy. Customer Service Scripts: We rewrite your automated messaging to set clear expectations with buyers about restocking fees before they ship the item back, discouraging “rent-and-return” behavior. Control is gone. Compliance is everything. Book a 20-min session with Big Internet Ecommerce (BIE) today! Follow Big Internet Ecommerce (BIE) on Instagram & LinkedIn to stay updated with the latest trends in Amazon selling.

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