A Guide to Claim Amazon FBA Reimbursement Successfully

amazon fba inventory reimbursement

Amazon is powerfully well-organised, with the best-in-industry processes for everything they do. Their technology is second to none, allowing them to run like a clock. It also enjoys the reputation of being the best customer service provider.

Sad but true, Amazon does make mistakes, just like every business. Due to the enormous size of this business, even a tiny error rate will impact many orders, which could have been equivalent to millions of dollars.

Does Amazon Owe You Money?

Yes, Amazon could owe you FBA reimbursement. The tricky part is to find and claim the FBA reimbursement owed to you. It can be tough to get a refund. But, hiring professional Amazon FBA consulting services will make the task less stressful.

Studies show that FBA reimbursement can amount to 1% to 3% of the yearly revenue. If your business runs into millions, you could have a significant amount. Hence, it is worth tracking your inventory damages, overcharge fees and incorrect refunds that could qualify as FBA reimbursement. You must see that you file a claim to the appropriate department within eighteen months from the date of the error, with the help of an Amazon FBA consultant.

What are Amazon FBA reimbursements and Amazon claims?

Amazon FBA reimbursement is the amount paid for the discrepancy made by Amazon on your Amazon selling account. As a seller, you need to go for an FBA reimbursement claim with Amazon, which allows you to seek the recovery of funds that the e-commerce giant owes you for the discrepancies on your account.

Requesting for reimbursement of funds in an Amazon claim is a part of the reimbursement process. Sellers can claim for products sold as back as 18 months on their Amazon FBA selling account. If sellers don’t manage Amazon claims, they will leave their money behind. In short, it is the seller’s responsibility to claim Amazon’s reimbursement.  

What kind of mistakes does Amazon make?

Amazon, the e-commerce giant, generally picks up on its mistakes, but a few of the errors could be left unattended. If the volume is high, the errors could pile up into a massive value. The physical nature of the business and the number of people at the store to pick, pack and ship products mean that errors are bound to happen.

Several issues that could lead to FBA reimbursement include:

  • Items lost or damaged in Amazon Warehouse or by inbound shipper
  • Items destroyed by Amazon without prior permission
  • Customers receiving multiple items but charged for one or fewer than the received items
  • The customer received a refund without returning the item
  • The customer received a replacement item without the return of the original
  • Stock deducted after shipment closed
  • Inbound inventory not added to seller’s account
  • Orders with the weight or dimension mischarged
  • Mischarged commission fees
  • Issued reimbursement not showing up
  • Removal order not received

The most common FBA errors experienced by FBA sellers are damaged inventory (by warehouse or shipper) and issues with customer returns (the product never reaches the warehouse, or the customer never returns it).

Amazon handles thousands of products and returns in a day. The huge volume is the only reason for such common issues.

Many sellers are stepping back from FBA as they believe the process is complicated and they would lose money if Amazon does not reimburse them for their inventory. The fact is that Amazon FBA provides many benefits , such as:

  • Handling fulfillment process: When a customer places an order for your product, Amazon picks, sorts, packs, ships, and tracks the order. The e-commerce giant even takes care of returns and manages refunds. If you, as a seller, need to handle all these processes, you will need to put in a significant amount of time and effort. In short, fulfillment by Amazon is not capital-intensive. It means fewer upfront costs to do business, which is ideal for companies, especially those looking for expansion.
  • Manage your returns: At times, it can be hard dealing with frustrated customers. You need to understand the reason behind returning products and check if it is a valid reason. Further, you need to pay the cost for replacement or refund and notify the customer about the change in status. You will need to employ additional staff as it is not possible for you to handle all this alone. FBA makes it easy for you, as Amazon’s employees attend to these tasks.
  • Reduce shipping costs: Shipping companies charge a significant amount for delivering products. If you plan to burden your customers with these charges, some of them will shift to your competitor. If you do not opt for this, you will be restricting your business growth. Amazon FBA provides premium services at a small nominal price.
  • Eliminates the need for a warehouse: Every business requires a warehouse to store them; a few rent premises, while others opt to own one. You would also need personnel to manage the warehouse. These all could increase your budget. Amazon FBA offers fulfilment centres to store your products. All overhead costs are included in affordable monthly inventory fees.

Along with these benefits, you can sell your goods worldwide. If you have to do all this by yourself, you would need to set a large budget aside. FBA centres are set up all around the world, for consulting Amazon FBA, which makes it easy for you.

It is clear that Amazon FBA provides a set of benefits. It is clear that there could be chances of a few errors for which Amazon reimburses its sellers, leaving them no chance to complain. Hence most sellers opt for FBA as they believe it will bring them voluminous business by just paying some inventory charges to Amazon.

Benefits of Amazon Reimbursements

Amazon FBA sellers should be doing everything they can to increase cash flow. FBA reimbursement is one way of increasing cash flow. The benefits of reimbursement include:

  • Extra inflow will benefit sellers during these peak times and help them manage the issues that may arise from heavy Amazon inventory restrictions.
  • For submitting an Amazon claim, sellers need to conduct a detailed audit of their accounts. It will help them to analyse the most-loved products and the items that are doing so well. It allows the sellers to get a grip on their positives and work on their not-so-good points.

In general, there are three techniques for reimbursement: Self-managing, virtual assistants and solution providers. The complete process from start to finish is a bit tedious; the complication multiplies if the number of products increases. Amazon requires specific documentation to support all the claims.

If you plan for self-managing, you could be intimidated by information, but there is no guarantee that the claim is submitted correctly. Virtual assistants lack experience in the Amazon FBA platform. Hence, the chances are high for you to not get the maximum FBA reimbursements that you are eligible to receive. In both cases, you may not get the desired result, and money being left behind.

We at eStore Factory could be your solution providers. Our specialist, the Amazon FBA account manager, can work on your behalf to recover the reimbursements. Their experience will make it look simple and reduce stress, allowing you to concentrate on your business.