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?”