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Amazon.com is set to refund customers for unresolved returns dating back to 2018 which was shortly after Amazon was set up in Australia. The move follows an internal review that uncovered
discrepancies which the Company has apologised for. Management claim that returns were never properly processed. The full scope of the refunds remains unclear, but Amazon executives hinted
that the amount could total hundreds of millions of US dollars. Pictures at the Amazon Fulfillment Centre BWU2 at Kemps Creek as it prepares for its official opening. An Amazon spoksperson
told ChannelNews “Following a recent internal review, we identified a very small subset of returns where we issued a refund without the payment completing, or where we could not verify that
the correct item had been sent back to us so no refund was issued. There is no action required from customers to receive the refunds, and we have fixed the payment issue and made process
changes to more promptly contact customers about unresolved returns going forward.”. Chief Financial Officer Brian Olsavsky revealed that the company took a one-time charge of approximately
$1.1 billion in the first quarter of 2025. The charge was attributed in part to unresolved customer returns as well as inventory costs linked to anticipated tariffs. Affected customers
received emails from Amazon explaining that a small number of returns were left unresolved because the company could not verify that the correct items were sent back. Instead of further
investigating the returns, Amazon opted to issue refunds. The company acknowledged that communication with customers could have been clearer and more timely. Meanwhile, Amazon is facing a
lawsuit alleging that it reversed refunds for customers who followed its policy by dropping off merchandise at designated locations. Though customers initially received immediate refunds
upon drop-off, they were later charged full price if the items never arrived at an Amazon facility. A recent legal claim against the Company points to concerns about fraud within the return
process. A US federal judge recently denied Amazon’s attempt to dismiss the case. A company spokesperson declined to confirm whether the refunds are linked to the lawsuit but assured
customers that no action is required to receive them. Amazon has since made changes to improve the return process and strengthen communication regarding unresolved returns. Among those
benefiting from the refunds is shopper Steven Pope, who was reimbursed nearly $1,800 last week for a 55-inch smart TV he purchased in 2018. “I’m probably not the only customer who has
experienced this,” Pope remarked in a LinkedIn post. “But isn’t that crazy—seven years to pay out a return?” About Post Author David Richards David Richards has been writing about technology
for more than 30 years. A former Fleet Street journalist, he wrote the Award Winning Series on the Federated Ships Painters + Dockers Union for the Bulletin that led to a Royal Commission.
He is also a Logie Winner for Outstanding Contribution To TV Journalism with a story called The Werribee Affair. In 1997, he built the largest Australian technology media company and prior
to that the third largest PR company that became the foundation company for Ogilvy PR. Today he writes about technology and the impact on both business and consumers.