Product

Sell price ($)

All-in cost per unit ($)

COGS + freight + initial FBA inbound

Return mechanics

Product category

Determines FBA return fee

Return rate % 8%

Typical: 5-10%. Apparel: 15-22%.

Resold as new (after grading) 40%

Resold for full price after Amazon grades them

Sold as Used-Like New (discount) 25%

Sold at ~70% of price via Amazon Warehouse Deals

Destroyed / unsellable 35%

Total loss. You can claim reimbursement if Amazon destroyed without authorization.

1. Better photos

Most #1 return reason: "Not as described / Wrong color." Lifestyle + scale photos cut returns by 3-5 points.

2. Honest dimensions

Apparel especially. Add a real size chart photo with measurements (not just S/M/L tags). 15% sizing returns can drop to 8%.

3. A+ Content videos

A 15-second demo video at the top of A+ content reduces returns by 10-15% on items with a learning curve (kitchen, electronics).

4. Negative review monitoring

2-star reviews tell you exactly why people return. Fix the top complaint each month. Update photos, listing copy, and product.

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