Amazon Updates FBM Refund Rules Effective January 26, 2026

Amazon has confirmed an update to its refund process for seller-fulfilled (FBM) orders, set to take effect on January 26, 2026. The change adjusts the timeline for issuing refunds on certain FBM returns and clarifies how automatic refunds and SAFE-T eligibility will be handled.

According to Amazon’s official policy updates, the new rules are intended to give sellers more time to inspect returned items. At the same time, the update introduces stricter consequences when refunds are not processed within the required window.

Refund Processing Window Expands to Four Calendar Days

Under the current Amazon FBM refund rules, sellers are required to issue refunds within 2 business days after receiving a returned item. Starting January 26, this window will expand to 4 calendar days, including weekends and holidays.

Amazon has stated that this change is meant to give sellers additional time to receive, inspect, and assess returned items before making a refund decision. For many sellers, this provides more flexibility compared to the existing business-day standard.

However, the extended window does not change what happens when deadlines are missed.

Automatic Refunds and SAFE-T Limits Still Apply

A close up view of yellow packages moving along a conveyor belt in a large warehouse. This image captures the essence of modern logistics and Amazon FBM Refund Rules.
Source: Vecteezy.com

If a seller does not issue a refund within the four-calendar-day window after receiving a return, Amazon may automatically refund the buyer. Once an automatic refund is issued, sellers will generally not be eligible to recover the funds through a SAFE-T claim.

Amazon has clarified that there are limited exceptions. SAFE-T claims may still be accepted in cases where the seller never received the returned item, such as:

  • returns lost in transit, or
  • delivery confirmation errors that are not attributable to the seller

Because the item was not available for inspection in these cases, sellers may still submit a SAFE-T claim with supporting evidence.

Amazon has also indicated that SAFE-T help pages are being updated to better reflect these scenarios, and sellers have been encouraged to share case IDs where reimbursement failed due to lost return shipments.

Which FBM Orders Are Affected

The updated refund policy does not apply to all FBM returns.

Amazon moderators have confirmed that Refund at First Scan (RFS) is not being removed. When Amazon provides a prepaid return label and RFS is triggered, refunds will continue to be issued at first scan, as they are today.

The new rules apply only to:

  • FBM orders
  • returns without an Amazon prepaid return label
  • cases where RFS is not triggered

For these orders, the seller has four calendar days after physically receiving the return to complete the refund before an automatic refund may occur.

What Amazon Recommends Sellers Do

Amazon is explicitly encouraging FBM sellers to use the Guided Refund Workflow (GRW). This workflow allows sellers to:

  • assess the condition of returned items,
  • apply appropriate restocking fees when applicable, and
  • upload documentation if the returned item differs from its original condition

Amazon has positioned GRW as the preferred way to handle FBM returns under the updated timeline, particularly when sellers need to document inspection results or protect SAFE-T eligibility in eligible cases.

What This Means for FBM Sellers

While the refund window is longer, refund risk has not been eliminated. Sellers who do not complete inspections and refunds within the four-day period still face automatic refunds and limited reimbursement options.

This is especially relevant for sellers handling:

  • cross-border returns with longer transit times,
  • high-value or resale-sensitive products, or
  • returns that require unpacking and condition verification

Under the updated policy, refund timing, documentation, and inspection speed directly affect whether sellers retain control over the refund process or lose it to automation.

Alexa Alix

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