Key Categories of Amazon FBA Reimbursements

Amazon FBA Seller Reimbursements

Did your inbound shipment miss on some inventory? Amazon owes you some money as per the FBA reimbursement policy. In simple words, FBA reimbursements can be defined as the amount Amazon owes to Amazon FBA sellers for issues or errors that need to be resolved.

This blog will help you understand different types of FBA reimbursement and an easy process to claim the amount without any complications, with the help of Amazon seller consulting services.

Everyone does make mistakes, and so does Amazon. The issue is that if Amazon can make mistakes, it will cost brands some money. Due to the large scale of sales taking place on the platform every minute of every day, Amazon cannot keep track of every error that occurs. Issues can range from miscalculated or misappropriated weight/dimension fees to product removal orders that were never received.

Types of reimbursements

The few categories of Amazon FBA reimbursements are:

#1: Issues with inbound shipment

You send your stock to the Amazon FBA warehouse. You wish the inventory reaches its destination and proceeds towards the customer without any major hiccups. The few common issues in this category include:

  • Missing units: In many unavoidable situations, Amazon may not receive all the units sent by you.
  • Damaged or lost by inbound carriers: The chances of the inbound carriers misplacing or losing inventory are high. It could be a part or whole of the inventory.
  • Stock deducted after shipment closes: You might see the correct number of units received by Amazon. But a few items have been deducted for an unknown reason after the shipment closes. 

If the inventory is lost or damaged, Amazon FBA protects the stock as part of Amazon’s terms of service. Amazon owes you the amount equivalent for the goods lost or damaged. Generally, it is the average sales price of the item.

#2: Lost and missing inventory

The goods may be lost or could be missing in the warehouse. It could be because the inventory could have been put in another seller’s account or moved somewhere else, which could be accidental.

The fact is that a few items are missing in the recent orders. It is because of the massive volume of products and orders; hence, it is a common occurrence. A few sellers report to have lost a few units almost every month.

#4: Damaged inventory

Your inventory could be damaged by some Amazon employees while fulfilling orders, by outbound carriers during customer delivery or while bringing back the items to the Amazon warehouse.

Accidents are bound to happen, which could cause some damage to a few inventories. Hence, it is one of the most common categories for reimbursements.

In a few cases, the customer could receive a slightly damaged item, which they would prefer to return. Amazon can’t catch all such issues because of the great number of deliveries.

#5: Customer return issues

It is one of the most common categories of FBA reimbursement, and the highest number of individual issues fall in this category. With so many returns being processed every day, such problems are unavoidable.

  • Uncredited restocking fees: Amazon charges the customer a 20% restocking fee, which they will take from your account. Amazon needs to refund that fee. But in some cases, the e-commerce giant might forget the refund after restocking is completed.
  • Customer refunded too much: The customer could be refunded with the wrong price or refunded for two units, while they returned only one.
  • Return product not received for refund or replacement: It could happen that the customer received the refund, but failed to return the product. In other cases, the customer receives a replacement product, but the warehouse fails to get the original product. The problem could be at the customer’s end also.
  • Return product unsellable: A returned product may not be in a condition in which Amazon can sell it to another customer. Amazon reimburses for such items.
  • Returned product not added to your inventory: Sometimes, a returned item may not reach the warehouse; hence, they are not added to the available stock.

#6: Destroyed inventory

Amazon destroys some inventory without your permission. It could happen because a customer returns a damaged product or product that cannot be sold to other customers. Amazon is supposed to refund you for all the items that undergo this process. At certain times, the reimbursement never happens. With the help of a few professionals, you can make your claim. They find the errors and ensure that the claims are processed.

#7: FBA fee errors

Amazon sellers pay Amazon commission fees, storage fees, long-term storage fees and shipping fees. The fee depends on:

  • The category in which you are selling your product
  • How long the product has been stored with Amazon
  • The size/weight of the item 

Amazon could overcharge you or charge shipping fees twice, or the commission fees are charged for the wrong category ( for example, charge 15% commission fees in books for an item in the consumer electronics category, which is supposed to be 8%). Over time, such small amounts can add up to huge reimbursements that could eat up your profits.

#8: Order quantity errors

You could face issues with processing order quantities. For example,a customer could receive three items while they pay for two. In most cases, the customers will not return the extra items received. They would enjoy their luck.

It is next to impossible for Amazon to detect such errors. You need to find inconsistencies in your account and inform Amazon about it.

#9: Missing reimbursements

At times, Amazon shows that they have reimbursed a claim amount. But actually, they haven’t done it yet. A professional account manager can detect such errors and ensure that you would be compensated accordingly.

#10: Chargebacks

You are not refunded for a chargeback? You can make your claim. In most cases, sellers like you are busy with their business. You would not have time or experience in finding such errors. 

A consulting Amazon FBA expert can spot such issues to get the refund in the shortest interval.

#11: Missing removal orders

Removal orders help lower your monthly fees. If you did not receive the inventory, you could reclaim a sizable portion. An experienced Amazon FBA account manager can make it simple for you.

#12: Inaccurate reimbursements

Generally, Amazon does not pay the full amount concerning your reimbursement. A professional company will keep track of the exact amount, and you get the maximum amount from the e-commerce giant.

Most business owners try to focus on their business and are inexperiened in handling their Amazon accounts. Hence, most of them ignore or try doing it. The worst part is that they would not get reimbursement because of the wrong claim or improper filing.

Why do you need to hire a professional FBA account manager?

Hiring a dedicated Amazon account management service can help as they guide you through the entire FBA reimbursement process. They would check on the logs for discrepancies with inventory reports and sales logs. They conduct comprehensive auditing and manual cross-reference. It will help in making fool-proof and valid claims to seek maximum FBA reimbursement. Their experience helps in following all Amazon guidelines and filing for Amazon FBA seller reimbursement. Once Amazon accepts the claim, they manually track the reimbursement process.

If you are looking for reliable Amazon FBA consulting services, you can contact us, – eStore Factory. Our representative can help you to get the most from Amazon.