The following examples illustrate how we calculate the refund administration fee.
Suppose you receive the following two-item order:
ItemA (item price) | 3,000 JPY |
ItemB (item price) | 50,000 JPY |
Shipping on ItemA | 500 JPY |
Shipping on ItemB | 1,000 JPY |
Gift Wrap on ItemA | 308 JPY |
Gift Wrap on ItemB | 308 JPY |
TOTAL | 55,116 JPY |
You then refund ItemA, including shipping and gift wrap (this is commonly done if the customer cancels the item before the order ships). Assuming the referral fee for the item is 15%, the refund administration fee is calculated as follows:
=10% x [ReferralFee x (ItemA + ShippingItemA + GiftWrapItemA)]
= 10% x [15% x (3,000 JPY + 500 JPY + 308 JPY)]
= 10% x [15% x 3,808 JPY]
= 10% x [571 JPY]
= 57 JPY
The refund administration fee for this line item is 10% or 500 JPY, whichever is lesser amount. For this example, 57 JPY will be charged as the refund administration fee.
Suppose you receive the same two-item order as described above, but this time you refund the order in full, including shipping and gift wrap. The initial refund administration fee calculation applies to each line item in the refund, as follows:
= 10% x [ReferralFee x (ItemA + ShippingItemA + GiftWrapItemA)]
= 10% x [15% x (3,000 JPY + 500 JPY + 308 JPY)]
= 10% x [15% x 3,808 JPY]
= 10% x [571 JPY]
= 57 JPY
= 10% x [ReferralFee x (ItemB + ShippingItemB + GiftWrapItemB)]
= 10% x [15% x (50,000 JPY + 1,000 JPY + 308 JPY)]
= 10% x [15% x 51,308 JPY]
= 10% x [7,696 JPY]
= 770 JPY (*rounded to the nearest decimal)
Refund administration fees cannot exceed 500 JPY, so the fee for item B is capped at 500 JPY. For this example, the total of 557 JPY will be charged as the refund administration fee.
Suppose you receive the following three-item order:
ItemA (quantity: 2) | 30,000 JPY |
ItemB | 5,000 JPY |
Shipping on ItemA | 1,000 JPY |
Shipping on ItemB | 500 JPY |
TOTAL | 36,500 JPY |
You then refund both quantities of ItemA. Because the refund administration fee calculation applies to each unique line item in a refund, and multiple quantities of a single item comprise a single line item, the calculation is applied one time for both ItemA's. Assuming again that the referral fee for items is 15%, the initial refund administration fee (before applying the 500 JPY cap) is calculated as follows:
= 10% x [ReferralFee x (ItemA's)]
= 10% x [15% x 30,000 JPY]
= 10% x [4,500 JPY]
= 450 JPY
The refund administration fee for this line item is 10% or 500 JPY, whichever is lesser amount. For this example, 450 JPY will be charged as the refund administration fee. All fees indicated above are before-tax price. Consumption tax for the services rendered by Selling on Amazon will be charged to you separately.