Many retailers lose nearly 3% of their business earnings because they do not cash out on their Amazon FBA Reimbursements. This is unintentional, as many sellers may not even know they are losing this money. The great thing is that Amazon has set up a functional system to help sellers recover or reclaim this lost revenue. If you’re a retailer wondering what an Amazon FBA reimbursement is, we’ve got you covered.
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What is Amazon FBA Reimbursement?
Amazon FBA (Fulfillment by Amazon) reimbursement refers to receiving compensation for various inventory-related issues that may occur within the Amazon FBA program.
Amazon fulfillment centers handle everything from storage and packaging to shipping your products on your behalf, but sometimes they may lose, mishandle, or damage your inventory.
When this happens, the sellers suffer financial loss; sometimes, most just let it go. But Amazon has a reimbursement process to compensate sellers for the value of lost or damaged inventory.
Different Types of Amazon FBA Reimbursement
Reimbursement Lost Inventory
When Amazon confirms that they have received your inventory, but somehow it cannot be located in any of their fulfillment centers, it becomes a case of lost stock. If this happens, you’ll become eligible for FBA reimbursement for missing inventory, which means Amazon will reimburse you for the value of the merchandise.
You may be eligible for reimbursement if your inventory is damaged while under Amazon’s care, such as during transportation or storage. This includes cases where the product packaging is damaged or the items are broken or unsellable.
When your inventory is marked as “received” by Amazon but goes missing or unaccounted for when you request it to be shipped back to you, you may be entitled to reimbursement.
You may be overcharged occasionally for fees related to inventory storage, fulfillment, and other services. This doesn’t happen often, but when it does, Amazon will have to reimburse you for the extra fees. It’s important to review your account and invoices regularly to identify any discrepancies so you can request reimbursement where necessary.
How to Identify Amazon FBA Reimbursement
Review your inventory reports regularly to identify any discrepancies in the quantity or value of your goods. Carefully search for items that are marked as lost or damaged because those are items that can be reimbursed.
Various software tools are available to help you automate the process of identifying potential reimbursements by comparing your expected inventory levels with the records provided by Amazon. These reconciliation tools are very effective and great if you know little about how it works.
Order Defect Reports
Monitor your order defect reports for customer complaints about missing or damaged products. These reports can help you identify potential cases for reimbursement.
Seller Support and Seller Central
Contact the official Amazon Seller Support or utilize your Seller Central account resources to learn more about the reimbursement process and specific steps.
Third-Party Services for Amazon FBA Reimbursements
Professional service providers like Refund Retriever also assist sellers with Amazon FBA reimbursement. Refund Retriever only charges a fee if we successfully recover funds on your behalf, so you have nothing to lose.
The key is to monitor your inventory and review all associated reports actively. That way, you can identify potential issues and request Amazon FBA reimbursement. Contact us today at Refund Retriever to have all your FBA inventory checked for accuracy.