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August 22, 2011

What is a Concession?

Sellers can always issue partial or full refunds for order costs, but the Amazon system also allows sellers to compensate buyers for order issues as an alternative to or in addition to refunding order amounts. Buyer credits that exceed the order total are called concessions. There are situations where you may want to issue funds to the buyer beyond the cost of the item(s) and shipping amount. For example, if a buyer receives a defective item and you want to compensate them for return shipping along with the order refund, you could issue a concession.

Concessions can be issued as partial refunds, with partial refunds, or along with full refunds. There are limits on the total amount sellers may provide to buyers when they issue order refunds and concessions. An order refund can't exceed the total amount originally paid by the buyer; however, the amount allowed in concessions may exceed the total cost of the order itself. Amazon displays the concession maximum for each item in an order using a formula that calculates the higher of the following two numbers:

Limit 1: 50% of the sum of original buyer-paid shipping plus product price
Limit 2: Twice the original buyer-paid shipping, plus $10 plus $20

To issue a concession:

  1. Log into your seller account.
  2. Go to your orders section and bring up the details of the specific order you want to refund.
  3. Click the "Refund order" button on the Order Details page.
  4. Choose the tab that fits your refund: Full (which is the default page) or Partial Refund (which is a tab below the order number).
  5. Use the pop-up menu to select the appropriate Reason for Refund. 
  6. Enter the amount of the return shipping and/or other concession into the Amount to Refund box.
    You will receive a pop-up asking you to confirm the concession.
  7. Add a memo to the buyer. 
    This is optional but highly recommended, allowing up to 255 characters.
  8. Click the Submit Refund button.


Additional facts to note about concessions:

  • It can take 15 minutes for the data to be updated in the order to reflect the refund in your seller account.
  • Buyers will see a concession amount as a different entry than a partial or full refund on their payment statement.
  • Concessions do not contribute to the refund percentage in your seller performance metrics. If one or more products in an order are fully refunded, then the order is counted as a refunded order and is included in your Refund Rate.

If you would like a more in-depth look at concessions, please access the Help section of your seller account and search for concessions.

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