EUR 25 rule on Amazon and local return address

What is the EUR 25 rule?

Amazon makes it clear that if a customer returns a product that cost less than €25 or £20, and the seller does not provide a local return address – then Amazon automatically grants the customer a refund, without having to send the item back. This is known as a ‘ returnless refund‘ – a refund without having to send the product back.

Sounds innocent? For you as a seller, this means a concrete loss not only financially, but also operationally. The product stays with the customer and Amazon takes the full amount of the refund from your balance. You have no influence over the decision.

Source: Amazon returns – international rules

When does the automatic refund work?

Amazon grants a returnless refund most often in situations:

• when the product costs less than €25 or £20,
• when you do not have a local return address in the customer’s country,
• you do not use the APRL (Amazon Prepaid Return Label),
• when you do not manually respond to a return request in time,
• when the customer benefits from a free return under Amazon’s policy (e.g. fashion products).

Importantly – Amazon does not ask your permission. The decision is made automatically and the funds disappear from your account

What is the risk of not having a local return address?

For a retailer, not having a local address is a real financial and operational risk. Here are some of the most common consequences:

• the customer keeps the product, you have no goods and no money,
• Amazon makes the decision on its own,
• you cannot file a claim through SAFE-T,
• your account may be charged with negative indicators,
• you lose control of the logistics and reputation of the seller.

Worse still, incidents like this can happen again and again. Especially if you offer cheaper products that are statistically more likely to be returned. And many FBM companies have hundreds of such offers.

How to avoid automatic refunds?

If you don’t want Amazon to decide your balance on its own – you need to be proactive. How do you protect yourself?

• add a local return address in the customer’s country (e.g. DE, FR, ES, UK),
• activate APRL, Amazon’s automatic return label,
• regularly monitor return requests and respond within 3 days,
• make sure return addresses are up to date and correctly assigned to your account.

From August 2025, Amazon will reduce its response time to 3 days for product returns over €25 – read more about this change here: Amazon FBM and 3 days response time for returns >€25

What does the local return address and APRL give you?

A local address and APRL is a must-have kit today if you want to sell on Amazon without unpredictable losses. What do you gain?

• control over the return of goods,
• getting your products back instead of losing them,
• compliance with Amazon requirements,
• less manual handling,
• operational peace of mind – no unexpected balance charges.

With Global24 you can have local return addresses in 6 EU countries and the UK, ready to integrate with APRL. And if APRL doesn’t work – you still have our operational and manual handling facilities.

Summary

The €25 rule sounds inconspicuous, but its effects can be very painful for FBM sellers. Amazon acts fast, without asking permission – so you need to act even faster.

Selling products worth up to EUR 25? Do it now:

• set up a local return address,
• activate APRL,
• read Amazon’s return policy carefully,
• get to know Returnless refund before it “knows” your account.

And then get in touch with us. At Global24, you will not only receive return addresses, but also full support in setting up APRL and protecting your sales on Amazon.