Amazon has officially announced its extended holiday return policy for the 2025 shopping season. This one carries real operational and financial impact for sellers. Any item purchased between November 1 and December 31, 2025, can be returned until January 31, 2026.
The update applies to all seller-fulfilled, FBA, and Amazon retail orders, and it does not change return eligibility rules. Only the return window is extended, not the types of items that qualify.
Exception: Apple-branded products purchased in this period can be returned until January 15, 2026.
What does this actually mean for sellers?
Most sellers read the policy and think “longer return period,” but the real impact goes much deeper.
Sales are no longer “final” until January 31: A sale made on November 1 stays at risk for almost 90 days, which means you cannot treat that revenue as final until January 31. This impacts your revenue recognition, weekly cash flow planning, inventory accounting, and even how you forecast replacement stock for the holiday season.
Expect a heavy return spike between January 5 and January 31: This is the period when customers start opening gifts, requesting exchanges, and processing returns, so you should be ready for a surge in FBA returns, delays in restocking or reimbursements, more “item not as described” disputes, and an increase in replacement requests for MFN orders.
Cash flow pressure increases for MFN sellers: MFN sellers should expect higher outbound shipping costs for replacements, slower confirmation of final sales, and a heavier customer service workload throughout January. While Q4 profit may appear strong at first, the real impact of these extended returns will be felt in mid-January.
What about items that cannot be returned?
The usual non-returnable categories still apply, including:
Perishables
Safety risk items
Customized products
Redeemable items
Pharmacy items
Pet medication
Some digital products
Automobiles
What priority actions are sellers taking right now?
Recalculate break-even and Q4 margins: Before finalizing holiday pricing, add a 2 to 5 percent buffer for the expected rise in January returns. Adjust your discounts so you do not lose money on high-return items, and if you use coupons, set budget caps to prevent unexpected spikes in redemptions.
Fix unclear product expectations: Update your lifestyle images to show the true size, material, scale, and usage; add compatibility charts when needed; and include a short “Before you buy” note in your bullets to address common misunderstandings upfront.
Reduce preventable FBA returns: Switch to stronger packaging for fragile SKUs and add simple labels like “open carefully” or “assembly required” when needed. If your items often arrive damaged, consider using an FBA prep service to improve handling and reduce unnecessary return volume.
Build a January inventory and cash flow plan: For December, keep restocking tighter for mid-risk products and avoid over-ordering fast movers until you see early January trends. Also, keep some working capital aside, because cash flow will feel tighter until mid-February.
Review return settings in Seller Central: Review your inventory return and disposal settings. Check how Amazon is classifying returned units: sellable, damaged, or eligible for refurbishment. Make sure products that can still be sold don’t get moved to unsellable status by mistake.
The return window does not override category restrictions. However, with good planning, strong listings, and smart inventory management, you can protect your margins and reduce unnecessary returns.
Want help optimizing your listings, minimizing return rates, or planning your Q4 strategy? Our expert at selling on Amazon can guide you through return-proof listing setups, inventory planning, and post-holiday workflows so your business stays profitable during the entire extended return season.
