Amazon’s 2024 updates to Seller Central policies are shaking things up. From new return fees to tougher performance metrics, it’s more important than ever to stay on top of the changes if you want to keep your business on track.

New Returns Processing Fee Structure

On June 1, 2024, Amazon introduced a returns processing fee for sellers with high return rates in most categories. Apparel and shoes, however, were exempt from these new charges. The fee is applied after tracking returns over a three-month period, kicking in when returns exceed category-specific thresholds. It starts at $1.84 but can go higher depending on the product's size and shipping weight. Sellers can keep track of return rates and thresholds through the FBA Returns dashboard, helping them adjust their strategies to keep costs under control. If you were shipping fewer than 25 units a month, you were automatically exempt. Plus, if you were in the FBA New Selection program, you got a pass on the first 20 returns over the threshold.

Product Bundling Restrictions

Amazon's new bundling rules went into effect on October 14, 2024, bringing big changes for sellers in grocery, pet, baby, health, and beauty categories. Now, only original manufacturers can bundle their own products — no more cross-brand bundles. Everything in a bundle must be from the same brand, so mixing products from different manufacturers is off the table. By late Q4 2024, Amazon will start enforcing these rules, giving sellers a 30-day notice before pulling any non-compliant listings.

For anyone already bundling, it's time to review your listings and either switch to manufacturer-created bundles or rethink your strategy before the enforcement deadline hits. These Amazon seller rules are serious, so staying on top of them is key.

Product Compliance Documentation Requirements

Amazon's compliance policy rolled out on September 30, 2024, requiring sellers to submit and get approval for safety docs before listing new products. Each product category has its own set of rules — like Children’s Product Certificates for toys, test reports for electronics, and safety certifications for medical devices. Sellers could upload their documents directly through the Manage Your Compliance dashboard, either one at a time or in bulk, up to 5,000 products. Amazon’s team reviewed the submissions, but didn’t say how long it would take. They also had the right to ask for extra info to make sure everything met safety standards.

FBA Reimbursement Policy Updates

Starting November 1, 2024, Amazon’s FBA program automatically reimburses sellers for lost or damaged items in fulfillment centers. No more dealing with manual claims in most cases. On October 23, 2024, the claim window was reduced from 18 months to just 60 days. This covers lost inventory, damaged products, and customer returns. Manual claims are still required for removal orders, mishandled returns, and any cases the system misses. Sellers need to provide documentation like invoices, tracking info, and inventory records. Sellers can track reimbursements through the Reimbursements Report in Seller Central, where they can see the status of both automated and manual claims.

Returns Management Changes

Amazon's Returnless Resolutions program lets FBA sellers offer refunds without requiring returns for items under $75, though dangerous goods and bulky items are excluded. Sellers can now customize inventory evaluation settings in Seller Central, deciding whether Amazon inspects returned items or handles evaluations for specific ASINs. Starting June 2024, products that exceed category-specific return rate thresholds face processing fees, ranging from 2.9% for grocery to 12.8% for backpacks (with apparel and shoes exempt). Amazon tracks returns over a three-month period, charging fees between the 7th and 15th day of the third month for units that surpass category thresholds. The Return Insights tool shows return percentages, category thresholds, and chargeable units on the FBA Returns dashboard.

Seller Account Performance Metrics

Amazon updated its seller performance metrics in 2024, tightening the rules for keeping your account in good standing. The Order Defect Rate now has to stay under 1%, and the Late Shipment Rate can’t top 4% of all orders. For seller-fulfilled orders, the Valid Tracking Rate is bumped up to 95%, and tracking numbers need to be added within 24 hours of shipment. The Account Health Rating now runs on a 0-1000 scale. Sellers with scores above 250 get Account Health Assurance, protecting them from deactivation. The Account Health dashboard gives real-time data on three key areas: Customer Service, Policy Compliance, and Shipping Performance.

Conclusion

Staying ahead of the curve requires adapting to new rules quickly and being proactive with your approach. Knowing how these changes impact your operations will make all the difference in protecting your seller account and maximizing your opportunities.