Concessions

In the context of Amazon selling (both 1P and 3P), Concessions represent monetary refunds or discounts provided by Amazon to maintain customer satisfaction. These amounts are deducted from the seller’s or vendor’s account when Amazon grants partial or full refunds.

Common reasons for concessions include:

• Product not as described
• Item arrived damaged or defective
• Late shipment or delivery issues
• Customer service resolutions or goodwill credits

For 1P Vendors:
Concessions appear in remittance reports and impact profitability metrics such as Contribution Margin and Net PPM.

For 3P Sellers:
Refunds processed through Seller Central will reflect as order adjustments or refunds, which sellers can track in the Payments or Reports section.

Why it matters:

• High concession rates may signal product or fulfillment issues
• Frequent refunds can impact customer experience metrics
• Important to monitor for quality control and operational health

💡 Example:
A customer receives a damaged blender and contacts Amazon. Amazon issues a full refund - the refunded amount is recorded as a concession and deducted from the seller’s earnings.

In short:
Concessions are the refunds or credits Amazon gives to customers - and charges back to the seller or vendor - to resolve order-related problems.