For years, Amazon sellers of expensive goods—like electronics, cameras, and designer handbags—relied on a critical "loophole" in the return policy: the High-Value Exemption. This allowed merchants to opt out of Amazon's automated prepaid return labels for items priced over $100, giving them control over return shipping, insurance, and tracking to prevent fraud.
As of February 8, 2026, that safety net is disappearing.
Amazon has announced it will require all U.S. sellers to enroll in the Amazon Prepaid Return Label (APRL) program regardless of item price. This move aims to standardize the customer experience and speed up refunds, but it exposes sellers of premium products to new risks.
No More Manual Returns for >$100
Previously, if a customer wanted to return a $500 laptop, the seller could approve the request manually and provide their own shipping label (often with signature confirmation and high-value insurance).
Under the new policy:
- Automated Authorization: Amazon will automatically authorize the return request.
- Instant Labels: The customer will instantly receive a standard prepaid shipping label (UPS or USPS) generated by Amazon.
- Loss of Control: The seller cannot choose the carrier or add specific insurance protections to the return leg of the journey before the label is issued.
Amazon’s stated goal is "consistency." The company wants to reduce the refund cycle time from an average of 14 days to 7 days. By forcing all returns into its automated ecosystem, Amazon eliminates the back-and-forth messaging between buyers and sellers that often delays returns for high-ticket items.
Who Is Still Exempt?
While the price-based exemption is gone, certain category-based and characteristic-based exemptions remain. You do not need to use APRL for:
- Handmade products.
- Certified Pre-Owned Watches.
- Dangerous Goods (Hazmat).
- Extra-Large or Heavy Items (typically those requiring freight or special handling).
The Risks for Sellers
The removal of this exemption creates three primary dangers for merchants:
- Inadequate Insurance: Standard prepaid labels often carry limited carrier liability (e.g., up to $100). If a $1,000 item is lost or damaged by the carrier using Amazon's label, recovering the full value can be difficult.
- Return Fraud (The "Rock in a Box"): Automated labels make it easier for bad actors to quickly ship back a dummy item. Since the return is auto-authorized, the seller has less time to vet the buyer's claim before the package is in transit.
- Refund at First Scan (RFS): While Amazon has not explicitly stated that all high-value items will be subject to RFS (where the buyer gets refunded as soon as the carrier scans the package), enrollment in APRL often triggers this. If applied to high-value goods, sellers could lose their money days before receiving the box to verify the contents.
With the deadline approaching, sellers must urgently adapt their defensive strategies to protect their bottom line.
The first line of defense is mastering the SAFE-T Claim process. If a customer returns a damaged item or a completely different product, you must be prepared to file a claim immediately. However, success in this arena requires impeccable documentation, meaning you should maintain a rigorous record of photos showing the item’s condition before shipping, photos of the return package upon arrival, and detailed serial number tracking to prove discrepancies.
Furthermore, for items valued over $100, video documentation is becoming an essential safeguard. Sellers should consider filming both the packing process and the unboxing of returns. As automated approvals remove human oversight from the initial return authorization, this footage is increasingly the only evidence Amazon accepts to resolve high-value disputes in the seller's favor.
Finally, it is critical to review your margins in light of these new risks. Since you can no longer control the shipping method or insurance on the return leg, the financial liability for lost or damaged goods may shift back to you. Consequently, you may need to increase prices slightly to "self-insure" against a mathematically probable higher rate of loss or fraud.
12 Jan, 2026
