For anyone selling on Amazon, tracking your inventory and costs is essential, and for anyone selling under the FBA framework not tracking your business’s data can mean the difference between failure and success. One of the biggest things for Amazon FBA sellers to track is thier reimbursements. The Amazon FBA process to reimburse you for inventory is a vital one to maintain healthy margins and replenished inventory.
Occasionally, the Amazon FBA process will result in lost or no longer sellable inventory. This is inventory you can be reimbursed for, but only if you know about the process and how to get it done effectively. The first step is getting the right data because Amazon definitely doesn’t make it easy to find for most sellers.
We’re going to take a look at the Amazon FBA reimbursement process, and how having access to the right data can dramatically increase the amount of lost revenue due to inventory loss. We’ll cover where to pull the reports, the process for recovering money for your lost inventory, as well as what may qualify and what won’t. Here’s everything you need to know about Amazon FBA reimbursement.
In the Amazon FBA or Fulfilled By Amazon framework, reimbursement is when Amazon FBA sellers can request payment for products that are currently missing or have been damaged beyond sellability while in the possession of Amazon. The reimbursement policy states that for a seller to be eligible for reimbursement there must be specific criteria that are met, and Amazon must be provided with the proper FBA reimbursement report. Additionally, reimbursement is only a possibility if Amazon cannot find a comparable product to replace the one that was lost or damaged. If a suitable replacement can be found, the seller will not be reimbursed.
Well, believe it or not, there are several ways in which Amazon will either lose or accidentally damage your inventory, while it’s under their supervision as part of Amazon FBA. Sometimes it’s Amazon’s fault directly, and other times it may be classified as the customer’s fault. Sometimes products go missing during shipment either to or from Amazon FBA and sometimes products they have that are perfectly fine and ready for sale get lost or damaged in the warehouse.
There are even situations where Amazon loses a product when an internal employee makes a mistake while processing the product for shipment. Amazon employees in the warehouse are supposed to scan all packages before putting them on a truck for shipping, but this doesn’t always happen. This means that if the product gets lost in shipping there is no record of it leaving the warehouse.
Sometimes, the warehouse workers will damage items through mishandling or carelessness, and even misplace them entirely. This is one of the primary reasons that Amazon has a reimbursement policy such as they do, that even covers warehouse errors and related troubles.
Amazon even loses items during inbound shipping, when you are sending them from you or your supplier to the Amazon FBA location specified. This is even seen more often when products are shipped directly from suppliers to the Amazon FBA warehouse. If an order is received at a warehouse that is missing items that should be included or has damaged items included, the policy is for Amazon to contact the supplier for a refund, and that reimbursements will not be issued to sellers unless the seller is shown to not be at fault during the shipping process.
We buy millions of dollars of high quality big-brand name merchandise directly from manufactures and big box retailers. We pass on an amazing (wholesale price) to you. We own our warehouse and fulfill your manifest in blazing speed. We carry many big brand names that the vast majority of sellers struggle to acquire.
We Move Fast! As your order is being fulfilled at the warehouse, the upload team is optimizing your listings simultaneously.
1) We inspect, pack, prep, polybag, fold and ship to Amazon.
2) We upload each individual item.
3) We optimize each listing.
We Do the Heavy Lifting!
When a customer makes an order on Amazon from your store via Amazon FBA, the item is delivered to the customer. Amazon professional sellers generally get paid by Amazon every two weeks. Each payment includes 14 days of orders that were successfully delivered seven days ago.
One of the most challenging things about being an effective seller with the Amazon FBA program is staying on top of all of the reports and datasets that you may need for one reason or another, and the reimbursement process is no different. To get reimbursement, you’ll need the right reports, and Amazon doesn’t always make them easy to find.
If you’ve been notified of lost or damaged inventory, you can find the general report under Reports -> Inventory. From the inventory type, navigate to the Reimbursement subtype, and you should see a drop-down menu. Select Amazon FBA Seller Claims from that menu, specify any other parameters that need to be entered, then click “Run Report”. This will generate the reimbursement report as a PDF file for your records.
If you have had a product get lost or damaged in the Amazon FBA program, an inventory report will need to be filled out to receive reimbursement. This report will require the following:
Once you’ve filled out all of the required information, Amazon will review it and make a decision about your reimbursement eligibility. The Amazon Reimbursement Process can depend heavily on filling out the right report for the right type of reimbursement to obtain the correct reimbursement amount. Just remember that even if you get a denial, you are able to appeal that decision.
Always make sure you fill out the Amazon FBA reimbursement report so that you receive appropriate reimbursement. If one of your products was lost, be sure you use the Amazon FBA seller reimbursement claim process to get reimbursed for that loss.
You should be able to obtain Amazon FBA reimbursements for product loss during the initial inbound shipping process unless the seller is demonstrably at fault. Reimbursements are also possible for warehouse-related damage or loss, including if it is the fault of the Amazon worker during processing. Basically, what it comes down to is if there are any losses or damaged products that occur that are not the fault of the seller, there is generally a reimbursement policy that will apply.
It’s important to note, however, that not all Amazon FBA sellers will be eligible for reimbursement. Some of the cases where a reimbursement might not be possible include:
Many sellers find that continually monitoring their reports and pursuing their lost inventory reimbursements is a stressful and tedious job. What most of those sellers don’t know, however, is that partnering with a powerful firm like The Amazon Junkies can lead to a much more efficient and effective way to run their Amazon FBA business.
The Amazon Junkies can help you manage not only your reimbursement claims but your entire Amazon FBA business. For more information on how you and your entire organization can benefit from our expertise, reach out today.