Amazon returns and FBA reimbursement gaps quietly drain revenue for sellers, yet few recognize the full impact until they analyze their operations. Mark Daniel Zalomajev from INNELS met Ivan Raineri in Bali, where the two connected over a shared passion for e-commerce and Amazon business optimization. Ivan, the founder of Eagle Eye, previously built Italy’s leading FBA reimbursement service and now provides software solutions to streamline returns and reimbursements for Amazon sellers. Their collaboration highlights practical strategies for managing reverse logistics, optimizing costs, and improving overall Amazon account performance.
The problem with returns is emotional. Sellers often take returns personally and avoid looking at the numbers, but ignoring them can be costly,” Ivan Raineri explains.
This article offers actionable insights for Amazon account management, Amazon PPC optimization, and operational efficiency for medium and large sellers looking to scale profitably.
Returns are not merely operational inconveniences; they represent lost revenue, immobilized capital, and missed growth opportunities. Ivan emphasizes that while FBA reimbursements typically account for 2–3% of annual revenue, return rates in categories such as electronics can exceed 15%, creating substantial hidden costs. Many sellers fail to address this because returns are perceived as personal rejections rather than business metrics.
The normal reaction we have as human beings is just look on the other side, just close your eyes. It’s crazy because we are entrepreneurs, but we are still human,” Ivan Raineri points out.
For Amazon marketing agencies and brand managers, recognizing these costs is crucial for developing a full-spectrum Amazon growth strategy.
The Role of Sourcing Costs in Maximizing Reimbursements
Amazon now calculates reimbursements based on sourcing costs instead of retail price, which can significantly affect recovery from lost or damaged inventory. Sellers who rely on Amazon’s default valuation often leave substantial money unclaimed. Ivan notes that only 5% of sellers actively update their sourcing costs, exposing a common blind spot.
Many sellers are not actively updating their sourcing cost. On the sellers we analyzed, only 5% had updated it, meaning they are trusting Amazon’s evaluation and leaving money on the table,” —Ivan Raineri reveals.
By accurately documenting sourcing costs, sellers can optimize FBA reimbursements and recover significant lost capital, an essential step for a profitable Amazon account management strategy.
Automation can simplify returns management, but human oversight ensures accuracy and accountability. Eagle Eye’s platform allows sellers to track inbound return shipments, verify quantities, assess product quality, and document issues with photos, which are submitted directly to the team for reimbursement processing.
Automation is great, but humans must stay in the loop. The human touch ensures accuracy and accountability,” Ivan Raineri emphasizes.
This hybrid approach protects sellable inventory, reduces capital waste, and maintains operational efficiency, particularly critical when scaling Amazon PPC campaigns and overall store performance.
While competitors provide reimbursement tracking, Eagle Eye stands out for its European market expertise, handling warranty-related return fraud and ensuring sellable inventory is reclaimed rather than destroyed. The software is adaptable to U.S. sellers but addresses EU-specific complexities that many tools overlook.
Many U.S. sellers destroy returned inventory unnecessarily. With the right system, it can be checked and resold, saving significant money,” Ivan Raineri explains.
This approach highlights the value of an Amazon marketing agency that combines operational intelligence with localized compliance expertise for cross-market expansion.
The end of commingled inventory and Amazon’s use of returnless refunds require sellers to gain better visibility over reverse logistics. Ivan stresses that while these changes may introduce short-term friction, they create opportunities for improved efficiency and profitability.
Returnless refunds are a major challenge. Amazon sometimes refunds customers without requiring returns, and sellers have little visibility or compensation. Greater clarity and shared responsibility would significantly benefit brands,” Ivan Raineri notes.
For e-commerce managers, understanding these shifts is essential to anticipate challenges and implement effective Amazon account management practices.
Delegation and structured operational processes are vital for scaling an Amazon business without burnout. Ivan recommends systematically offloading administrative and operational tasks to focus on leadership, strategy, and high-value decisions.
Start with admin tasks, then delivery, marketing, sales, and finally leadership. Delegation frees your time for high-value decisions and ensures accountability,” he advises.
This strategy allows Amazon sellers to convert returns from a hidden loss into reclaimed capital while maintaining operational oversight, supporting growth and profitability.
Effective management of FBA returns and reimbursements is no longer optional. By auditing returns, updating sourcing costs, combining human oversight with automation, and implementing strategic delegation, sellers can transform what is traditionally seen as a loss into an actionable revenue opportunity.
The biggest myth about Amazon returns is that you cannot do anything about it. Returns are an opportunity to recover money and units which is capital,” Ivan Raineri concludes.
For Amazon sellers, integrating these insights into a comprehensive account management and Amazon growth strategy ensures sustainable profitability and long-term operational success.
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