In some cases, Sellers compensate buyers for order issues aside from or in addition to refunding basic order costs. For example, under Brazilian law, the seller must refund the return shipping cost if the customer return is requested under 7 days after delivery (7-day customer regret law). Also, when a buyer receives a defective item, the seller may cover the cost of return shipping in order to retrieve the item. Additionally, If a buyer is disappointed with the received item, but they are willing to keep it, a seller may choose to make a monetary concession to the buyer.
These cases are classified in two types of concessions:
In general, concessions can be issued to buyers out of Amazon platform, and the method can be agreed with the buyer through Buyer-Seller Messaging. However, gift cards are not compliant with Brazilian law for mandatory return shipping concessions. For these, Sellers should either offer pre-paid label (to avoid the return shipping concession), or refund the return shipping in cash. This holds true unless a customer is given the cash option but prefers not to take it, and accepts a gift card.
Sellers can always issue partial or full refunds for order costs, such as the product price or the shipping the buyer paid originally. Concessions allow sellers to compensate buyers for order issues as an alternative to or in addition to refunding order amounts. For example, in the case of a defective item, a seller might provide a return shipping concession and then process a full refund once the seller has received the return.
Concessions do not contribute to the refund percentage in your seller performance metrics. If one or more products in an order are fully refunded, then the order is counted as a refunded order and is included in your Refund Rate.