1. Customer complains
2. Amazon gives them their money back
3. It comes out of your account
4. You wait for up to 45 days to find out why or what complaint was.
If your lucky (or unlucky depending on how you look at it) and the item was actually returned amazon will then determine if it can be resold the same way it was OR it will be placed into your ‘Unfullfillable’ inventory. At that point you can either have the item disposed or have it sent back to you. If its under 20 lbs its only .50 to have it shipped back to you. Then you can figure if the customer was full of it or what. Then you can re package and resend to amazon or if it was actually defective you can maybe sell it for parts on eBay.
Its an easy process and here is a short video on how to do it 🙂 This is only after it is actually returned, not how to find out why it was returned in the first place (thats another post/video)