Selling fee
Refund Commission
When a buyer returns an item, Amazon refunds most of your commission — but keeps a portion as an administrative fee.
Also known as: RefundCommission, Refund Administration Fee
What it is
On a refund, Amazon credits back the commission they originally charged, MINUS a refund administration fee (typically 20% of the original commission, with a $5 cap). This appears as a positive number in the RefundCommission row, partially offsetting the negative original Commission row.
How it appears in your settlement file
| amount-type | amount-description |
|---|---|
| ItemFees | RefundCommission |
Quick facts
- Who pays
- Amazon (paid to seller)
- Typical sign
- positive
Example
Original commission was -$7.50. Buyer refunds the order. RefundCommission row shows +$6.00 (you keep $1.50 cost).
Tips
- The 'kept' portion of commission on refunds is roughly 20%. So a refund effectively costs you 20% of the original commission as a sunk fee.
- This is why high-refund-rate products are extra expensive on Amazon — you eat the FBA fee, the refund admin, and inventory damage if returned.
See this fee in your own settlement
Drop your settlement .txt and we'll show you exactly how much this fee added up to in your period.
Convert your settlement file →📋 For accounting assistance and educational purposes only. Not financial, tax, or legal advice. Always verify figures against your official Amazon Seller Central reports before filing taxes. Not affiliated with Amazon.com, Inc. See full disclaimer.
Related fees
- Commission (Referral Fee) — Amazon's percentage cut of every sale, charged on the item price plus shipping.