Amazon FBM returns 2026: What's changing in January

Last week we got an email from Amazon about an "improvement" in the returns process for FBM sellers. It sounded optimistic - more time to process returns, less stress, better control.

Then we had a phone call with a client who's been selling via FBM since 2018. "So I have 4 days instead of 2?" he asked. "Yes," we said. "And what's the catch?" he asked immediately.

Smart guy. Because there's always a catch with Amazon changes.

Here's what's actually happening starting January 26, 2026, and why at AMZ Genesis we're already advising clients to prepare now, not wait for January.

What exactly is changing

Okay, let's start with the basics. Before January 26, 2026, if you're an FBM seller and a customer returns a product, you have 2 business days to process the return and issue a refund. If you don't? Amazon automatically refunds the customer and takes it from you.

Starting January 26, Amazon is changing this to 4 calendar days.

At first glance - great, right? More time. Less stress. Opportunity to review the product properly before deciding whether to give a full refund or partial.

But there are several important details that Amazon mentions in smaller print in their announcement.

Calendar days, not business days

First thing - notice they're CALENDAR days, not business days. Which in practice means if a return arrives Friday afternoon, your 4 days end on Tuesday.

We had a client at AMZ Genesis who thought 4 calendar days meant "no problem, I have the whole week." Not quite. Weekends count. Holidays count. And if you're a small business without a warehouse team working seven days a week, this can be a problem.

Refund at First Scan still exists

This is the big "but" in the whole change.

Refund at First Scan - or RFS for those familiar - is that system where Amazon automatically refunds the customer the moment the returned product is scanned at a carrier facility. Without waiting for it to arrive at your location. Without asking you if the product is in the same condition.

RFS continues to exist after January 26. And you know when it triggers? When the customer uses an Amazon prepaid return label.

Which means for quite a few returns, those 4 days don't help you at all. Because the money's already been refunded before the product arrives at your location.

In practice, we at AMZ Genesis see that about 60-70% of returns for our FBM clients use prepaid labels. Which means the new policy only affects 30-40% of cases.

When do you actually have those 4 days

Okay, so when exactly do those 4 days help you?

When a customer returns a product WITHOUT using an Amazon prepaid label. Which usually happens when:

• You provided your own return label
• The customer ships the product at their own responsibility
• You have your own return procedure outside Amazon's system

In these cases, the 4-day window opens from the moment the product arrives at your location (or more precisely, when it's marked as "delivered" in the tracking system).

During these 4 days you can:

• Physically inspect the product
• Document its condition
• Take photos if necessary
• Decide whether to give a full refund, partial, or dispute the return

And this is where the Guided Refund Workflow comes in, which Amazon is actively encouraging sellers to use.

Guided Refund Workflow - your new best friend

This is a tool in Seller Central that's existed for a while, but many sellers don't use it because... well, Amazon doesn't advertise it much.

Now though, with the new policy, it becomes quite important.

GRW allows you to:

1. Rate the condition of the returned product (new, used, damaged)
2. Apply restocking fees where appropriate (up to 20% for most categories)
3. Upload photos and documentation
4. Choose the type of refund based on the product's condition

We had a case two months ago - client sells electronics via FBM. They receive a return. The product comes with a broken screen - clearly dropped after the customer received it. Without GRW, they would've just issued a full refund to avoid an A-to-Z claim.

With GRW, they documented the condition, uploaded photos, applied a 50% restocking fee because the product was clearly damaged by the customer. Amazon approved it. They saved $180 on the return, which at 15-20 returns monthly... you do the math.

SAFE-T claims - why automatic refunds are a problem

Here comes the critical part that many sellers miss.

SAFE-T (Seller Assurance for E-commerce Transactions) is Amazon's program that allows you to file a claim for reimbursement when Amazon has issued a refund to a customer, but you believe it wasn't your fault.

For example - customer claims the product didn't arrive, but tracking shows it was delivered. Or customer returns something completely different from what you shipped.

In these cases, you can file a SAFE-T claim and Amazon sometimes reimburses you.

But - and this is a big BUT - according to the new policy, if you don't process the return within the 4 days and Amazon issues an automatic refund, your ability to file a SAFE-T claim is drastically limited.

There are exceptions - if the product is lost in transit, or if there's an error in delivery confirmation, you can still file a claim. But for most other cases? You're out of luck.

This means the new policy actually has a dual purpose:

1. Gives you more time (good)
2. But if you miss the deadline, you lose reimbursement rights (bad)

What to do practically

Alright, enough theory. Here's what we recommend at AMZ Genesis for our FBM clients.

First - set up return notifications

Don't rely on checking Seller Central every day. Set up email or SMS notifications for every return. Because those 4 days pass FAST, especially over the weekend.

We had a client who missed a return because it was Saturday and he doesn't work Saturdays and Sundays. Monday he had other things. Tuesday he remembered. Already too late - automatic refund, no SAFE-T option.

Second - use GRW for EVERY return

Even if you're going to give a full refund, go through GRW. Because it creates documentation in the system. And if later you have a problem with that customer - chronic returner, or someone trying to abuse the system - you have history.

Amazon tracks this. They see which customers have a pattern of abuse. But only if you document properly.

Third - photograph everything

When a product comes back, take photos before opening it. Then open it and take more photos. Especially if there's damage or missing parts.

It may seem paranoid, but trust me - we've seen cases where these photos saved hundreds of dollars.

Fourth - have a clear return policy

Many FBM sellers have a vague return policy because they rely on Amazon's standard one. This is a mistake.

Create a clear, detailed policy. How many days customers have to return. What condition the product should be in. What restocking fees you apply. Who pays return shipping.

And then follow it consistently. Because Amazon tracks your consistency.

Fifth - consider if FBM is still right for you

Honestly? With all these changes, especially RFS remaining, returns are getting more complicated for FBM sellers.

If you're selling high-value products with high return rates, maybe it's time to think about:

• Moving to FBA (where Amazon handles returns)
• Hybrid model - some SKUs FBA, others FBM
• Improved packaging and product descriptions to reduce returns

At AMZ Genesis we often do "FBA vs FBM" analyses for clients. Sometimes we discover that the real costs of handling FBM returns are actually higher than FBA fees. Which makes FBA more profitable, despite the fees.

What to expect after January 26

Realistically, here's what will probably happen.

The first few weeks there'll be confusion. Some sellers will think they have 4 days for all returns and will be surprised when RFS still works for prepaid labels.

There'll be more automatic refunds than usual, because sellers will miss the 4-day deadline, especially over weekends.

Amazon's support will be overwhelmed with questions about SAFE-T claims.

And after a month or two, things will settle into the "new normal."

Sellers who prepared - who set up systems, who know how to use GRW, who document properly - will do well.

Those who wait to see what happens? They'll lose money in the learning process.

Frequently asked questions

Do these 4 days apply to all returns?

No. Only for returns that DON'T use Amazon prepaid return labels with Refund at First Scan. For RFS returns, the refund is automatic upon scanning, so time doesn't matter.

What happens if I miss the 4-day deadline?

Amazon automatically issues a full refund to the customer. And - this is important - you lose the right to most SAFE-T claims except in specific cases like lost package or incorrect delivery confirmation.

Can I apply a restocking fee?

Yes, through the Guided Refund Workflow. Amazon allows up to 20% restocking fee for most categories, if the product is returned in used or damaged condition. But you must document properly.

How do I file a SAFE-T claim?

Log into Seller Central, go to Orders, find the relevant order, and click "File a SAFE-T claim." You'll need to provide evidence why you believe the refund shouldn't be at your expense. Tracking information, photos, communication with the customer - everything helps.

Is it still worth selling via FBM after this change?

Depends on your business model. FBM still makes sense for specialized products, high margins, customizable items, or when you want full control over customer experience. But you need to be ready to handle the returns process properly, because Amazon is making it increasingly complex.

Can AMZ Genesis help me with FBM return management?

Absolutely. We help FBM clients set up proper systems for handling returns, train their teams how to use GRW correctly, and can even manage the return process for them if they don't have in-house capacity. The goal is to minimize losses from unfair returns and maximize approved SAFE-T claims.

Conclusion - prepare now

The change starting January 26, 2026 isn't the end of the world for FBM sellers. But it's not the pure plus that Amazon presents it as either.

Reality is somewhere in the middle. You have more time - which is good. But you also have more responsibility to act within that time, otherwise you lose protection - which isn't good.

The sellers who'll do best are those who:

• Understand exactly when they have those 4 days (not for RFS returns)
• Use Guided Refund Workflow consistently
• Document everything with photos and notes
• Have systems for tracking return deadlines
• Know when and how to file SAFE-T claims

And if all this sounds overwhelming - that's normal. Returns management was never simple on Amazon, and it's getting more complex.

If you want help preparing for the changes, or if you just want someone to review your current FBM setup and identify weak spots, AMZ Genesis is here for exactly that. Contact us for a consultation - better to be ready in January than learn the hard way in February.