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The Complete Guide to Amazon FBA Reimbursement [2023 Updated]

The Complete Guide to Amazon FBA Reimbursement [2023 Updated]

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Unfortunately, Amazon or their courier partners accidentally lose or damage your items every month. In some cases, Amazon refunds the customer, but your item never returns to the warehouse. However, Amazon FBA reimbursement policies ensure sellers get compensated for these mistakes.

If your lost or damaged inventory is part of the Fulfillment by Amazon (FBA) service, Amazon will offer a refund or replacement policy.

However, the fact is that Amazon misses a significant number of cases for FBA inventory reimbursements, and sellers have to monitor that they receive their money back manually.

This article looks at determining your reimbursement according to Amazon FBA refund policies and filing a reimbursement claim. Let’s get your money back!

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What Is Amazon FBA Reimbursement

amazon fba reimbursement

Amazon FBA Reimbursement is a process where Amazon reimburses sellers for various types of financial losses related to their inventory stored and fulfilled through the Fulfillment by Amazon (FBA) service.

It is essential for Amazon FBA sellers to understand and utilize the reimbursement process effectively, as it directly impacts their profitability and ensures they are fairly compensated for any losses incurred.

As an FBA seller, you entrust Amazon with your inventory’s storage, handling, and shipping. However, there are instances where your inventory may go missing, get damaged, or be returned incorrectly.

In such cases, Amazon FBA Refund Reimbursement provides a mechanism for you to recover the associated costs or fees you have incurred.

Different Types of Amazon FBA Reimbursements

Reimbursement Claim TypeDescription
Lost InventoryReimbursement for inventory that has been confirmed as lost by Amazon’s tracking system.
Damaged InventoryReimbursement for inventory that has been damaged while under Amazon’s control and responsibility.
Overcharged FeesReimbursement for fees that have been overcharged by Amazon, such as incorrect FBA storage fees.
Inaccurate RefundsReimbursement for refunds issued by Amazon that were incorrect or not initiated by customer returns.
Inbound Shipment ProblemsReimbursement for issues related to the receiving and processing of inventory during inbound shipments.
Missing ReturnsReimbursement for items that were returned by customers but not properly received or processed by Amazon.

Lost Inventory Reimbursement

Lost Inventory Reimbursement applies when your inventory stored in Amazon’s fulfillment centers goes missing or cannot be accounted for. It could be due to various reasons such as misplacement, shipping errors, or internal inventory handling issues.

By filing a claim for lost inventory reimbursement, you can recover the value of the lost items and ensure you are not bearing the financial burden of their disappearance.

For example, let’s say you sent 100 units of a product to Amazon’s warehouse, but only 80 units were received and accounted for in your inventory. In such a case, you have experienced a loss of 20 units. By filing a lost inventory reimbursement claim, you can receive reimbursement for the value of those 20 units, allowing you to recoup your investment.

amazon fba reimbursement

Damaged Inventory Reimbursement

Damaged Inventory Reimbursement pertains to situations where your inventory is received by customers in a damaged condition.

This could occur during fulfillment, transportation, or any other handling within Amazon’s facilities. Filing a claim for damaged inventory reimbursement enables you to receive compensation for the value of the damaged items, safeguarding your bottom line.

For instance, if you sent a shipment of delicate glassware to Amazon, but due to mishandling or inadequate packaging, a significant portion of the items arrived broken and unsellable.

By filing a damaged inventory reimbursement claim, you can recover the value of those damaged items and prevent the loss from impacting your profitability.

Return Processing Fee Reimbursement

Return Processing Fee Reimbursement comes into play when a customer returns a product to Amazon, but the return is not processed correctly, resulting in unnecessary fees being charged to your account.

This can happen if Amazon fails to update the return status, resulting in the retention of return processing fees that should have been waived. By filing a claim for return processing fee reimbursement, you can recover those fees and avoid unnecessary expenses.

For example, let’s say a customer returns an item within the designated return window, but Amazon fails to update the return status in a timely manner, leading to return processing fees being charged to your account.

By filing a return processing fee reimbursement claim, you can ensure that those fees are rightfully refunded to you, minimizing the impact on your profitability.

Overcharged FBA Fees Reimbursement

Overcharged FBA Fees Reimbursement applies when Amazon charges you more than the agreed-upon FBA fees for services such as fulfillment, storage, or removals. This could occur due to miscalculations or errors in the fee calculation process.

By filing a claim for overcharged FBA fees reimbursement, you can ensure you are billed accurately and receive reimbursement for any excess fees you have paid.

For instance, it is important to investigate further if the FBA fees charged for a particular product are significantly higher than anticipated based on the published fee schedule.

By filing an overcharged FBA fees reimbursement claim and providing evidence of the discrepancy, you can rectify the error and receive reimbursement for the excess fees.

Incorrect Measurements Reimbursement

Incorrect Measurements Reimbursement addresses situations where Amazon miscalculates the dimensions or weight of your inventory items. This can result in inaccurate storage fees or excessive shipping charges.

By filing a claim for incorrect measurements reimbursement, you can rectify these errors, receive reimbursement for any overcharges, and ensure accurate billing moving forward.

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For example, if you notice that Amazon has incorrectly recorded the dimensions of your product, resulting in higher storage fees, it is crucial to take action.

By filing an incorrect measurements reimbursement claim and providing evidence of the correct measurements, you can correct the billing discrepancy and receive reimbursement for any overcharged fees.

Understanding the different types of Amazon FBA reimbursements empowers you as a seller to identify instances where you are eligible for reimbursement. It is important to monitor your inventory and promptly file reimbursement claims for any applicable cases to mitigate financial losses and maintain a healthy profit margin.

How to Raise Successful Reimbursement Claims

1. Keep meticulous records

Maintain thorough documentation of your inventory shipments, including itemized lists, tracking numbers, and proof of delivery. This documentation will be invaluable when filing reimbursement claims as it provides evidence of your inventory’s status and condition.

2. Regularly reconcile your inventory

Conduct regular inventory reconciliations to identify any discrepancies between the number of units you sent to Amazon and the units they have accounted for in your inventory. Promptly address discrepancies and file reimbursement claims for missing or unaccounted items.

3. Monitor customer returns

Pay close attention to customer returns and ensure that Amazon accurately processes them and waives the appropriate return processing fees. If you notice any discrepancies, promptly file a return processing fee reimbursement claim to recover those fees.

4. Double-check fee calculations:

Regularly review your FBA fee calculations to ensure they align with the published fee schedule. If you identify any instances of overcharged fees, file an overcharged FBA fees reimbursement claim to rectify the error and receive reimbursement.

5. Stay proactive and persistent

Be proactive in monitoring your inventory and filing reimbursement claims promptly.

If a claim is initially denied, review the denial notice carefully, and if appropriate, appeal the decision. Additionally, reach out to Amazon Seller Support for assistance and clarification on any claim-related issues.

How to Determine How Much Amazon Owes You?

Let’s look at how to audit your inventory for products that Amazon has lost or damaged. As mentioned before, missing inventory is a common reason for compensation, but how do get reimbursed for Amazon FBA lost or damaged inventory? 

The first thing to do is get the Inventory Adjustments report from Seller Central. It shows the history of adjustments to your inventory in response to issues such as disposition changes, misplaced inventory, found inventory, and ownership corrections. You can download either a .csv or a .txt file that contains 18 months’ worth of inventory data. 

To get the report, take the following steps:

  1. Log in to your Seller Central account.
  2.  Go to Reports → Fulfillment → Inventory Adjustments.
  3. Request either .csv Download or Request .txt Download
  4. Save the file to your computer.
  5. After you’ve downloaded the file, you need a program such as Microsoft Excel to view the data and interpret it.

How to Read The Inventory Report?

The file that you download looks something like the image below.

When you have the report, pay careful attention to the note under the “Reason” column. Amazon has a list of adjustment reason codes such as letters and numbers that give you a better understanding of what exactly happened to your inventory. The type shows whether an adjustment increases or decreases your inventory level.

However, for FBA reimbursements, the essential codes to remember are E and M. Those exact codes represent inventory that Amazon has lost or damaged. As an Amazon business, you are eligible to claim reimbursement.

How to Claim FBA Reimbursement for Lost Inventory

The next step is to open a new case within Amazon Seller Central and claim FBA reimbursement. At this point, some people just send the entire file to Amazon and hope they will do the hard work for them. However, sending a lot of meaningless data to Amazon does not lead to efficient reimbursement results.

Sorting the data before sending it may speed up the process. However, figuring out what Amazon has reimbursed you for can be tricky. Instead of downloading a file, Amazon also lets you view the Inventory Adjustments Report online, allowing you to filter the data by reason group.

After finding the relevant information, navigate to the “Contact us” page on Seller Central and raise an FBA issue with lost and damaged item data attached.

After you submit the case, Amazon gets back to you within 12 hours and reimburses the amount within 5 to 10 business days.

How to Claim FBA Reimbursement for Customer Returns

When customers request a return, Amazon tends to refund them immediately, regardless of whether they actually return the item. Typically, you receive a confirmation of the refund and a second one after the item has arrived back at the Amazon warehouse.

From the FBA returns report, you can monitor the state of customer returns. If the report shows that the return has started, it means Amazon has refunded the customer, but your items have not been received back yet.

However, sometimes your inventory might never find its way back to the Amazon warehouse. If it has been more than 45 days since the customer initiated the return and Amazon hasn’t refunded your items, you need to raise an FBA reimbursement claim.

How to Claim FBA Reimbursement for Incorrectly Measured Items

Amazon scans the inventory that you send to determine the possible defective or damaged items during fulfillment center operations. Occasionally, these Cubiscans incorrectly measure your product because of an irregular bulge in the package. As a result, your item is classified into a higher size category, and Amazon overcharges the FBA fees.

To prevent this, you need to monitor Amazon’s CubiScan dimensions of your product. Typically, you input your ASIN into the Amazon FBA fee calculator and compare the fees to detect any irregularity. You have to ask Amazon to re-measure the item if you notice any. Keep in mind that you can only have an item re-measured once every 6 months.

After re-measuring the inventory, Amazon reimburses you for previously overcharged FBA fees. However, make sure that you receive your reimbursement from Amazon.

Tools for Amazon FBA Reimbursement

FBA Reimbursement Tab on Eva
FBA Reimbursement Tab on Eva

Monitoring and filing for reimbursements manually take a lot of time and effort. Like most aspects of selling on Amazon, there is a solution to ease getting Amazon FBA reimbursements process.

Amazon reimbursement services, such as Eva’s FBA Reimbursement service, offer an easier way to get refunds. Eva audits all your FBA sales, transactions, shipments, refunds, reimbursements, and inventory data and detects potential FBA reimbursement cases using artificial intelligence technology.

Also, an expert case management team will manage the whole claim process for you and maximize your Amazon reimbursement based on Amazon FBA reimbursement policies.

Instead of sending pointless reports to Amazon, the software picks the relevant information. You can claim FBA reimbursement with more certainty and 50% faster.

After filing the claim, the reimbursement appears in your account 4-5 days after Amazon approves it. Moreover, you can inspect all your refunds from the reimbursement report, including those requested by you and those generated automatically.

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What to Do If Your Amazon FBA Reimbursement Claim is Denied

If your Amazon FBA reimbursement claim is denied, don’t worry. You can take steps to address the denial and potentially get the reimbursement you deserve. Follow these steps when your claim is denied:

Review the Denial Notice

When your claim is denied, Amazon will provide you with a denial notice explaining the reason. It’s crucial to carefully review this notice to understand why your claim was rejected.

The denial notice may include specific details or requirements that were not met, such as missing documentation or insufficient evidence.

Appeal the Denial

If you believe your claim was wrongly denied, you have the option to appeal the decision. To appeal, you’ll need to provide additional information or evidence to support your claim.

This could include invoices, receipts, or other documentation validating your reimbursement request. Clearly explain why you believe your claim should be approved, addressing the specific concerns outlined in the denial notice. Take care to present your case in a clear and concise manner.

Contact Seller Support

In addition to appealing the denial, it’s advisable to reach out to Amazon’s Seller Support for further assistance.

Contacting Seller Support allows you to discuss the denial directly with Amazon’s representatives, clarify any misunderstandings, and seek guidance on how to proceed.

They may provide valuable insights, offer alternative solutions, or help escalate your case to the appropriate department for a thorough review.

Be prepared to provide all relevant information and reference your original claim when contacting Seller Support.

Remember to remain professional and polite throughout your communication with Amazon. Clear and concise explanations and supporting evidence can strengthen your case and increase your chances of a successful appeal or resolution.

Recent Updates and Changes in Amazon’s FBA Reimbursement Policies in 2023

As an Amazon FBA seller, it’s crucial to stay updated on the latest changes and updates in Amazon’s reimbursement policies.

In 2023, Amazon implemented several significant updates that can affect your FBA reimbursement process. Here are the key changes you should be aware of:

Increased Reimbursement Timeframe for Lost or Damaged Inventory

Previously, sellers had 12 months to file a claim for lost or damaged inventory. However, Amazon has recently increased this timeframe to 18 months.

This means that sellers now have an additional 6 months to file a claim and receive reimbursement for their lost or damaged inventory. It’s important to note the specific timeline and ensure you file your claim within the extended period to maximize your chances of receiving reimbursement.

New Requirements for Filing Claims for Incorrect Fees

Amazon has recently updated its requirements for filing claims related to incorrect fees. Sellers must now provide more detailed information when filing a claim, specifically identifying the specific FBA fees that they believe are incorrect.

This additional requirement helps Amazon process claims more efficiently and accurately. When filing a claim for incorrect fees, ensure that you gather all necessary documentation, such as fee breakdowns and invoices, to support your claim and clearly explain the discrepancies.

Improved Customer Support for FBA Reimbursements

In response to seller feedback and to enhance the overall experience, Amazon has made improvements to its customer support for FBA reimbursements. Sellers now have access to an FBA Reimbursement Support team. You can reach the Support Team via email or phone.

This dedicated support team is equipped to address your questions and concerns and provide guidance throughout the reimbursement process. If you encounter any issues or have inquiries related to your reimbursement claims, don’t hesitate to reach out to Amazon’s FBA Reimbursement Support team for assistance.

Conclusion

The Amazon FBA program is beneficial for thousands of entrepreneurs worldwide. However, despite Amazon making the process easier, sometimes mistakes are bound to happen.

Along with this convenience comes the need to regularly monitor the correctness of the fees that Amazon charges you. However, by following these methods and trusting a helpful tool such as Eva Reimbursement, you can claim back hundreds from Amazon.

What are you waiting for? Contact us today so we can help you get refunded by Amazon!

FAQ | Amazon FBA Reimbursement

Can Amazon force a seller to refund?

Yes, all Amazon sellers, no matter FBA or FBM, are required to follow the return policies with no exceptions.

How long does it take to get a refund from Amazon third party sellers?

According to Amazon’s return policy, third-party sellers must refund the customer within 2 days of receiving the returned order.

How do you get a refund on Amazon from a seller?

To get a refund on Amazon from a seller, you first need to contact the seller and request a refund. If the seller does not offer a refund, you can then contact Amazon customer service and request a refund.

Amazon will investigate your claim and if they find that you are entitled to a refund, they will process the refund for you. In most cases, Amazon will refund your money within 5-7 business days. So, if you are unsatisfied with a purchase from Amazon, don’t hesitate to request a refund.

Does Amazon reimburse sellers?

Yes, Amazon reimburses sellers for various types of financial losses through the FBA reimbursement process. Sellers can file claims for lost or damaged inventory, incorrect fees, overcharged FBA fees, and more.

What is Amazon FBA reimbursement?

Amazon FBA reimbursement refers to the process where Amazon compensates sellers for financial losses related to their inventory stored and fulfilled through the Fulfillment by Amazon (FBA) service. It allows sellers to file claims for various situations such as lost or damaged inventory, incorrect fees, overcharged FBA fees, and more.

How do I claim reimbursement on Amazon FBA?

1. Review your inventory: Regularly monitor your inventory to identify any discrepancies, such as missing or damaged items.

2. Gather documentation: Collect supporting documentation such as itemized lists, tracking numbers, and proof of delivery for the affected inventory.

3. File a reimbursement claim: Access the Amazon Seller Central dashboard, navigate to the appropriate section (such as the “Manage FBA Inventory” page), and select the option to file a reimbursement claim. Provide all necessary details and attach the supporting documentation.

4. Review and appeal if needed: If your claim is denied, carefully review the denial notice for any possible errors or missing information. If appropriate, appeal the decision with additional evidence to support your case.

5. Contact Seller Support: If you encounter difficulties or require further clarification, reach out to Amazon Seller Support for assistance with your reimbursement claim.4.

How much are FBA reimbursement fees?

The specific fees associated with Amazon FBA reimbursements can vary depending on the type of reimbursement and the circumstances involved. Amazon typically does not charge additional fees for reimbursement claims. However, it is important to note that there might be specific requirements or conditions that must be met for each type of reimbursement.

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