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Vendors have a damage or returns allowance deducted from their remittances. This is initially estimated by the Amazon Vendor Manager and is part of the of the legal agreements you sign in Vendor Central when you first get setup (Question: Do you have all your agreements downloaded? They are legal contracts!). A better name for it would be “Return Allowance.” On return to Amazon, products may be either placed back in inventory if unopened, refurbished/evaluated and sold on Warehouse Deals, liquidated, or destroyed. In any case, that agreement means they won’t come back. As this allowance agreement comes to the end of its term, your vendor manager will pull a report and review your returns rate. They will then negotiate with you to cover return costs if your return rate exceeds your current deduction.

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