The A2Z Guarantee Recovery Fee, also called A-Z Warranty Case Refund, relates to claims made by customers under Amazon’s A-to-Z Guarantee. If a customer doesn’t receive the purchased product, the product arrives damaged, or it doesn’t match the description, Amazon may issue a refund to the buyer through this program.
Note: The guarantee itself protects customers when they buy a third-party fulfillment product from Amazon FBM sellers only.
The amount of the A2Z Guarantee Recovery Fee typically depends on the size of the refund issued. If the claim is successful, Amazon refunds the full amount to the customer and deducts that same amount from the seller’s account. On top of that, Amazon may hold back a portion of the sales commission (usually around 20%), meaning you, as a seller, lose both the product and part of the fee you originally earned from the sale.
For sellers, losing multiple A-to-Z claims can be costly as Amazon will deduct the full refund from the seller's account + a potential fee (around 20%). The thing is that if your claims rate is too high, it can negatively impact your order defect rate (ODR). And if that number gets too high, your account could be at risk of suspension.
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