Amazon's refund administration fee, explained
When you refund an Amazon order, Amazon gives back the referral fee it took on the sale, minus a refund administration fee: the lesser of $5.00 or 20% of that referral fee. Here's what that leaves you paying on a refund, and where to find it in your payout.
refund administration fee
20% of the referral fee, under the $5.00 cap.
What a refund costs you
- The sale goes back to the buyer: the item price, and the shipping and gift wrap they paid.
- Amazon gives back the referral fee it took on the sale, minus the refund administration fee.
- The FBA fulfillment fee isn't given back: the unit was shipped either way.
- Returns processing: if the product's return rate is above its category's threshold, Amazon also charges a returns processing fee per returned unit.
- The unit itself: if it comes back sellable it goes back into stock; if it never comes back or comes back damaged by Amazon or the carrier, Amazon owes you for it: see Amazon FBA reimbursement rules.
Where it shows in your settlement report
A refund is its own set of lines in the payout: the item price taken back from you, the referral fee given back (amount description Commission, a positive amount) and the refund administration fee (RefundCommission, a negative amount). The settlement report guide walks through a refund line by line, and the settlement report analyzer adds up yours.
Examples
| Item | Referral fee | Refund administration fee | Given back |
|---|---|---|---|
| $9.99 home and kitchen | $1.50 | $0.30 | $1.20 |
| $24.99 home and kitchen | $3.75 | $0.75 | $3.00 |
| $18.00 beauty, health and personal care | $2.70 | $0.54 | $2.16 |
| $299.00 home and kitchen | $44.85 | $5.00 | $39.85 |
Referral fees by category, with their price bands and minimums: Amazon referral fees.
MyProfit counts refunds, the fees Amazon keeps and the units that come back in each product's profit, and lists the refunds Amazon still owes you for.
Source: Amazon's "Selling on Amazon fee schedule" in Seller Central, read October 3, 2026. Amazon can change its fees at any time.
See what refunds and returns cost each product
MyProfit pulls your orders, fees, settlements, returns and ad spend from Amazon every night and shows your real profit by product, day and payout. 30 days of everything free, then $19.99 a month, or keep the free plan: it finds the money Amazon still owes you and checks your FBA fees, for good.