We recently had a FBM order, it was subject to a discretionary return. The buyer paid extra for expedited shipping, so I paid much more to ship it to meet his arrival date. He asks to return it, and Amazon refunds both the item price and the separate shipping charge.

What is going on here? I had thought that sellers decided what to refund, which is why I charge a separate shipping charge on FBM orders. Is that no longer the case? Worse than that, why would they ever refund an additional expedited shipping charge, which is an extra that the buyer wants, when it means that I had to pay 2-3x the regular shipping cost? I cannot afford to lose costs like this.

Admittedly I don't do a lot of FBM, so I'd appreciate someone letting me know what's up and how to navigate these things. And if Amazon is just going to auto-refund shipping on discretionary returns now, I will have to stop selling these items on their site.