How Does SellerLegend Handle Refunds?
SellerLegend handles refunds differently from many other tools. Understanding this approach is important for interpreting your financial data correctly.
Refund Date Assignment
SellerLegend applies refunds to the original order date rather than the date the refund is received. For example, if an order placed on March 1 is refunded on March 15, the refund count will appear on March 1, not March 15.
Financial Adjustments
Revenue, fees, and COGS are all reversed on the original order date. This means today's financial metrics won't reflect refunds received today unless the original sale occurred today.
COGS Restock Logic
The platform assumes 68% of refunded units are returned to inventory, so only that percentage of COGS is restored to profit calculations.
Partial Fee Recovery
Not all original fees are refunded by Amazon, and some categories incur refund administration fees. This means refunded orders may show net negative profit, not zero.
Reporting Limitations
Refunds appear in dashboards and the Orders screen but are excluded from the P&L report to keep it focused on realized operational performance.
Why This Matters
This approach ensures consistency between when revenue is removed and when refund counts are updated, eliminating the confusion where refunds appeared without corresponding revenue changes on the refund receipt date.