So how do returns work with FBA. If I sell a new item, and it's returned as defective (for free shipping, I guess), does Amazon repackage it and sell it again for me, ship it to me to resend it in, or just sell it themselves and keep the profit.

I remember changing some settings that I can no longer find to send items to me, but I've never recieve one. (only had 3-4 returns so far, and one was before I switched the settings.

My margin on this item in particular is huge (3x before fees and shipping in cost) so I can afford a few returns and resales, but if I just am at a loss (and they say, go ahead and keep it refund) I'm screwed on any sort of profit if this happens more than once every few sales.

Are there more settings, or reports that I can find? (I found one under reports that shows returns, but I've had 3 in the last 30 days and it's only showing one item.)