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This article applies to selling in: Japan

Partial Refunds for BMVD Products

The following examples illustrate how refund credits and refund administration fees are calculated for a BMVD product.

Example 1: Partial Refund of a single item from an order

Suppose you receive the following single-item order for a book with standard shipping:

Cost of book: 5,000 JPY (item price set by you)
+ Standard Shipping: 262 JPY (rate set by Amazon)
Buyer's Total: 5,262 JPY

For this order, your proceeds would be as follows:

Product charges: 5,000 JPY
– Referral Fee: 789 JPY (referral fee of 15%)
– Variable Closing Fee: 80 JPY (fee for Books products)
+ Shipping: 262 JPY
Seller's Total: 4,393 JPY

Your total fees (referral and variable closing fee) for this order are 869 JPY.

You then issue a partial refund in the amount of 1,500 JPY of the product charges. The amount returned to you is calculated as a percentage of the referral fee, or commission, paid on the product charge, not including shipping. The variable closing fee is retained by Amazon.

Formula for refund credit

1,500 JPY (partial refund) / 5,000 JPY (product charge) = 30%

30% (percentage refunded) x 789 JPY (amount of referral fee) = 237 JPY (credit for refund)

Formula for administration fee

The administration fee in this case is 70% of 789 JPY, or 552 JPY, plus the 80 JPY variable closing fee, for a total of 632 JPY.

Example 2: Partial Refund of multiple items from an order

Because shipping for BMVD products is set per item, the shipping amount charged to the buyer cannot be consolidated. If a buyer orders multiple items from you, or multiple quantities of the same item, the buyer will be charged the same shipping rate for each item. In this case, you may want to issue a partial refund to return a portion of the product charges to the buyer.

Suppose you receive the following multiple-item order for DVDs with expedited shipping:

1 copy of DVD-1: 2,000 JPY
+ Shipping: 356 JPY
5 copies of DVD-2: 10,000 JPY
+ Shipping: 1,780 JPY
1 copy of DVD-3 (box set): 7,500 JPY
+ Shipping: 356 JPY
Buyer's Total: 21,992 JPY

For this order, your proceeds would be as follows:

Product charges: 19,500 JPY
– Referral Fee: 3,293 JPY (referral fee of 15%)
– Variable Closing Fee: 980 JPY (7 x 140 JPY fee for DVD products)
+ Shipping: 2,492 JPY
Seller's Total: 17,719 JPY

Your total fees for this order are 4,273 JPY.

You would then issue a refund of part of the shipping fees to return 1,300 JPY to the buyer. The amount returned to you is calculated as a percentage of the referral fee, charged on the product price. For BMVD products, Amazon does not calculate a referral fee on shipping, instead the referral fee percentage is charged on the product price, exclusive of shipping. In addition to the referral fee, a variable closing fee is applied. The variable closing fee is retained by Amazon when you issue a partial refund.

Formula for refund credit

1,300 JPY (partial refund) /19,500 JPY (product charge) = 6.67%

6.67% (percentage refunded) x 3,293 JPY (amount of referral fee) = 220 JPY (credit for refund)

Formula for administration fee

The administration fee in this case is 93.33% of 3,293 JPY, or 3,073, plus the 980 JPY in variable closing fees, for a total of 4,053 JPY,which is not credited to the seller account.

Partial refund for the purchase using Amazon points, visit this page.

All fees indicated above are before tax. Selling on Amazon service charge is subject to sales tax and will be billed to you separately.

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