Revenue already adjusted - Refunds automatically deducted
The lost revenue from refunds is automatically subtracted from the overall revenue, though this is not specifically displayed within the top revenue chart.
Attributed to Day of Original Order
The lost revenue will be attributed to the day of the original order, which is the correct way to look at refunds accounting-wise.
This is contrary to the Seller Central's refund reports, which attribute refunds to the day of Amazon's payback transaction.
Example: if you sold 5 items on January 1st for $20 each (= $100), one of which is returned a week later, then your sales for that January 1st are retroactively corrected to $80.
Inventory Costs of Original Orders Remain
As Amazon's API does not provide information about the returned item's condition, Sellics assumes the "worst case scenario" for all refunds, meaning your products cannot be sold anymore.
Therefore, the cost of goods and (inbound) shipping costs for the original ordered unit(s) will still be included in the "return costs" on the day of the original order.
Amazon Referral Fees Paid Back
The referral fees for the original order are reimbursed by Amazon and is thus removed as a cost on the day of that order.
Added cost: Return Commission
However, Amazon does charge a return commission (15% of the referral fee), which is visible among the "Returns" costs (see image below).
FBA Fees Remain
Amazon does not return the FBA shipping fees, so that these costs will stay the same.
Product Replacements without Refunds not included (FBM)
For sellers doing FBM, it's possible to offer product replacements without refunding the original order.
As there is no new transaction, Amazon's API does not signal any return and no change is shown in Sellics for the respective order.
Canceled Orders not considered as Returns
If an order is canceled, the order simply disappears from the calculation and does not lead to any costs.
Product Level: Number of Refunds & other related Metrics in Extra Columns
Within the Profit Overview, you can select which columns to view for your products at the top of the table, which also includes these refund metrics:
"Return Cost", as shown in the image above, currently only includes the return commission, though we are considering to add the lost inventory costs and FBA fees into that metric in the future, in contrast to leaving them within the COGS and FBA shipping fees categories respectively.