Amazon Goodwill Refund: Meaning, How It Works, Who Pays & How Much You Can Be Paid

As a customer, you reserve the right to a refund whenever Amazon fails to meet your expectations regarding an order. Ideally, Amazon should refund the exact amount you paid for the order. However, when it is the opposite, it is considered a Goodwill Refund. 

Here is an example: let’s assume you initiated a refund for a $125 order and got paid $200. The additional $75 is the Goodwill refund. It is simply Amazon’s way of compensating you for any delivery issue. 

So, what does this type of refund mean, and how does it work? Read this guide until the end to find out. You will also discover how the refund is calculated and how much you can expect to be paid if the package is from an Amazon retailer.

What is the Amazon Goodwill Refund?


The Amazon Goodwill Refund, or Amazon Guarantee, is an additional payment (accompanying a refund) issued by Amazon to customers who experience order or delivery issues. This type of refund is issued by discretion, not policy. 

In addition, not all Goodwill Concessions will cover the cost of your order or even more. Sometimes, customers may not get a third of the product’s price even after complaining to customer service. This occurs when an item is not returned in its original condition. 

Who is Eligible for the Amazon Goodwill Refund Work and How Does It Work? 

As I mentioned earlier, this type of refund is issued at Amazon’s discretion. You may be eligible if you: 

  • Received a damaged or defective item 
  • Received your order after the estimated delivery date 
  • Did not receive any item, received an incomplete order, or an empty package 
  • Experience a situation that negatively impacted your order experience from Amazon, a retailer, or a driver. 
  • Made a mistake while placing an order 
  • Bought a package that was eventually recalled for quality issues 

After contacting the contact service to express dissatisfaction with a purchase, Amazon will investigate your report. If the company deems it appropriate, it may issue a Goodwill refund as a demonstration of commitment to customer satisfaction. 

Amazon will likely refund you via your original payment method. However, it may also reward you via Amazon gift cards or other payment methods, depending on the situation and your preference. 

How High Can an Amazon Goodwill Refund Be?

It depends on the source of the item: 

For Amazon orders 

There is no fixed rule regarding how much you will pay as a Goodwill Refund. The Amazon customer service team will discuss and calculate how much you will get. 

For Retailers orders 

Unlike Amazon FBA orders, there is a cap on Goodwill Refunds for orders processed and shipped by a retailer. In this case, a Goodwill refund cannot exceed the price of the sold item, and there is a way to estimate how high it can get. 

Amazon calculates Goodwill refunds for orders in 2 ways:

  • By adding 50% of the amount the buyer paid for the product and shipping,
  • Doubling the amount paid for shipping and adding $30.

Hence, if you paid $50 and $20 for an item and its shipping, respectively, your Goodwill refund can be as high as $105 or $70.

How Do You Know If Your Amazon Refund Went Through? 

Amazon allows customers to view the status of a refund process. To do this: 

  1. Go to “Your Orders”
  2. Locate the specific order and click on “Problem with Order”
  3. The current status of your claim will appear. 

Who Pays for Amazon Goodwill Refunds?

Amazon is responsible for paying Goodwill refunds, irrespective of who processed or shipped the order. However, the process usually varies, as sellers are initially charged for the refund and reimbursed 45 days later. 

On the other hand, Amazon will bear the loss (without any reimbursement) if it processes and ships the order. 

Should The Buyer Return the Item after Getting an Amazon Goodwill Concession Refund?

You can receive a Goodwill refund when the package is still with you. Nevertheless, you should not make the mistake of keeping the item after receiving payment from Amazon. 

Amazon expects you to initiate a return process once you request a refund. However, since the ideal window for a return is 45 days, you will likely receive a refund before taking the item to the nearest warehouse or facility. 

The only exception is when you schedule a pickup for the return. You can also be directed to donate such an item to charity. Failure to return an item within the return window after receiving a Goodwill refund will force Amazon to take action.

In most cases, Amazon will charge you for the item or revert the Goodwill refund after reviewing the order again. 


Does Amazon give instant refunds?

The Amazon instant refund option will only appear for eligible purchases. It is an option that allows you to get your refund without waiting for your return to be processed by Amazon. 

How long will it take for Amazon to refund my money?

A refund process can take about 10 business days or more, depending on the payment method. It is usually faster for gift and credit card payments (2 to 5 business days).

What should you do if Amazon does not refund you? 

Contact Amazon’s support to escalate your claim. However, before you go through this process, double-check your payment method and communicate with your financial institution to be sure they are not responsible for the issue. 

In a Nutshell 

Any buyer can be eligible for an Amazon Goodwill refund because there are no hard and fast rules for it. This refund aims to ensure Amazon and retailers do their best to ensure customer satisfaction always. 

In addition, customers should remember to initiate a return process for the order or donate it to charity, depending on the circumstances surrounding it and Amazon’s instructions. 

This is because the Goodwill refund will be charged from the seller’s account initially. If your order was processed and fulfilled by Amazon, the company bears the loss with no hope of reimbursement. 

The same process works for items purchased from a retailer. However, they get reimbursed after being charged the Goodwill refund fee. This charge can disrupt a seller’s plan financially, which is why they must continue to provide excellent service. 

I hope you found this guide helpful. Please see what to do if Amazon sends you the wrong item and how to avoid such delivery mistakes

Thanks for reading.