The following examples illustrate how the refund administration fee is calculated for a non-BMVD Product.
Suppose you receive the following two-item order:
Item A (item price) | 300.00 EUR |
Item B (item price) | 50.00 EUR |
Shipping on Item A | 40.00 EUR |
Shipping on Item B | 5.00 EUR |
Gift Wrap on Item A | 5.00 EUR |
Gift Wrap on Item B | 2.00 EUR |
TOTAL | 402.00 EUR |
You then refund Item A, including shipping and gift wrap (this is commonly done if the customer cancels the order before it ships). Assuming the referral fee for the product category is 15%, the initial holdback is calculated as follows:
= = Holdback Rate [Referral Fee x (Item A + Shipping Item A + Gift Wrap Item A)]
= 20% x [15% x (300 EUR + 40 EUR + 5 EUR)]
= 20% x [15% x 345 EUR ]
= 20% x [51.75 EUR ]
= 10.35 EUR
But as the holdback for this product cannot be greater than 5 EUR, it is capped at 5 EUR. Note that other item-related charges, such as shipping and gift wrap, are included in the holdback calculation, but tax is not. Amazon does not retain a portion of any refunded taxes.
Suppose you receive the same two-item order as described above, but this time you refund the order in full, including shipping and gift wrap (this is commonly done if the customer cancels the order before it ships). The initial refund administration fee calculation applies to each item in the refund, as follows:
= 20% x [Referral Fee x (Item A + Shipping Item A + Gift Wrap Item A)]
= 20% x [15% x (300 EUR + 40 EUR + 5 EUR)]
= 20% x [15% x 345 EUR]
= 20% x [51.75 EUR]
= 10.35 EUR
= 20% x [Referra lFee x (Item B + Shipping Item B + Gift Wrap Item B)]
= 20% x [15% x (50 EUR + 5 EUR + 2 EUR)]
= 20% x [15% x 57 EUR]
= 20% x [8.55 EUR]
= 1.71 EUR
Refund administration fees cannot exceed 5 EUR, so the first is capped at 5 EUR and the second is taken as is, for a total administration fee of 6.71 EUR. Other item-related charges, such as shipping and gift wrap, are included in the refund administration fee calculation, but tax is not. Amazon does not retain a portion of any refunded taxes.
Suppose you receive the following three-item order:
Item A (quantity: 2) | 600.00 EUR |
Item B | 50.00 EUR |
Shipping on Item A | 20.00 EUR |
Shipping on Item B | 5.00 EUR |
Gift Wrap on Item A | 5.00 EUR |
Gift Wrap on Item B | 2.00 EUR |
TOTAL | 682.00 EUR |
You then refund both quantities of Item A, excluding shipping and gift wrap (this is commonly done if the customer returns the order after it has shipped). Because the refund administration fee calculation applies to each unique item in a refund, and multiple quantities of a single item comprise a single item, the calculation is applied one time for both Item A's. Assuming again that the referral fee for items in this category is 15%, the initial refund administration fee (before applying the 5 EUR cap) is calculated as follows:
= 20% x [Referra lFee x (Item A's)]
= 20% x [15% x 600 EUR]
= 20% x [90 EUR]
= 18.00 EUR
As this refund administration fee is greater than 5 EUR, it is capped at 5 EUR. No refund administration fee calculations apply to subsequent refunds involving this item because the 5 EUR cap is already met.