Refund Administration Fee Sample Calculations

The following examples illustrate how we calculate the refund administration fee.

Example 1: Refund of a single item from an order

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:

Refund administration fee for ItemA

=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.

Example 2: Refund of multiple (different) items from an order

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:

Refund administration fee for ItemA

= 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

Refund administration fee for ItemB

= 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.

Example 3: Refund of multiple quantities of the same item from an order

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:

Refund administration fee for both ItemA's

= 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.