Amazon’s FBA service has its perks. They help you handle the storage, shipping, and customer service, freeing you to focus on other parts of your Amazon business. This can be a big relief.
However, it's not all smooth sailing. While Amazon FBA eases many tasks, it doesn't handle everything. As a seller, you should know that Amazon can make mistakes. Some sellers may not pay close attention to their FBA inventory, but remember, your profits are your responsibility.
Thankfully, in cases where Amazon has lost or damaged items, Amazon reimburses sellers. However, you need to claim reimbursement to retrieve your funds.
The first step is to check your inventory report and ensure you are eligible for reimbursement process. This is where employing an efficient reimbursement service could really come in handy.
In this article, we’ll delve into the details of Amazon FBA reimbursements and guide you on how to reclaim money that is rightfully yours.
What is Amazon FBA Reimbursement?
Amazon FBA Reimbursement is a process where sellers get reimbursed by Amazon for losses related to their inventory in the FBA program.
As an Amazon FBA seller, you must know how to get these reimbursements. It affects your profits and ensures you get paid back for any losses.
After all, you rely on Amazon to store, handle, and ship your items. It’s only natural that sometimes, your items might get lost, damaged, or returned wrongly.
In these situations, Amazon FBA reimbursement tools let you get back the money or fees you've lost, facilitating refunds for FBA sellers.
Different Types of Amazon FBA Reimbursements
Lost Inventory Reimbursement
Lost Inventory Reimbursement is for when Amazon loses items. They either go missing in Amazon's warehouses or can't be found. This could happen due to misplacing items, shipping mistakes, or problems with how Amazon handles inventory.
You can file a claim for lost inventory reimbursement to regain the value of the lost items. This way, you won't have to pay for items that disappeared.
For instance, imagine you sent 100 units of a product to Amazon's warehouse, but they only recorded 80 units. You've lost 20 units. If you file a claim for these lost 20 units, you can get money back for them, helping you regain your investment.
Regularly review the reimbursements report in your Amazon Seller Central account for effective inventory management.
Damaged Inventory Reimbursement
Damaged Inventory Reimbursement is for when customers get their items damaged.
This can happen while Amazon is fulfilling, transporting, or handling your items. When you file a claim for damaged inventory, you can get paid for the value of these damaged items, protecting your earnings according to Amazon's FBA reimbursement policy.
For example, say you sent fragile glassware to Amazon. If mishandled or poorly packaged, many arrive broken and can't be sold. This makes you eligible for a reimbursement. When you make a claim for these damaged items, you can get back their value, saving your profits.
Return Processing Fee Reimbursement
Return Processing Fee Reimbursement is needed when a customer sends a product back to Amazon, but Amazon doesn't properly record the return. This can lead to you being charged return processing fees you shouldn't have to pay. You can file a claim to get these fees back as a part of reimbursement for sellers.
For instance, imagine a customer returns an item within the allowed time, but Amazon is slow to update the return status. This delay leads to return processing fees on your account.
If you file a claim for these fees, you can get them refunded through Amazon refunds. This will help you keep your profits intact.
Overcharged FBA Fees Reimbursement
Overcharged FBA Fees Reimbursement is used when Amazon bills you more for FBA services like fulfillment, storage, or removals than they should. This overcharging can happen because of mistakes in calculating fees.
To fix this, you can file a claim to get back any extra fees you've paid. This makes sure you're charged correctly.
For example, if you notice the FBA fees for an item are much higher than the fees listed, you should look into it.
You can file a claim for these higher fees and show proof of the error to get back the extra money you paid.
Incorrect Measurements Reimbursement
Incorrect Measurements Reimbursement occurs when Amazon gets your items' size or weight wrong. This can lead to you paying too much for storage or shipping.
Fill a claim for this reimbursement to fix these mistakes, get back overpaid fees, and make sure future charges are correct. For instance, if Amazon records your product's size wrongly, causing higher storage fees, you need to act.
If you make a claim for these wrong measurements and show the right size, you can adjust the charges and get a refund for the extra fees.
How to Successfully File Reimbursement Claims
Sellers often have chances to recover losses in their business. But it's key to note that Amazon is now more thorough in checking FBA reimbursement claims to make sure they're valid.
Here's how to handle the FBA reimbursement process.
1. Keep Detailed Records
Always keep detailed records of your inventory shipments. This includes lists of items, tracking numbers, and delivery proofs. These records are very important when you file for reimbursements, as they show what you sent and its condition, helping you support your claim.
2. Regularly Check Your Inventory
Make it a habit to compare your inventory records with what Amazon has. If there are any differences, like lost or damaged inventory, file a claim right away to get reimbursed for it.
3. Watch Customer Returns
Keep an eye on how Amazon handles returns from customers. Make sure they process them correctly and don't charge you the wrong fees. If there's an error, quickly file a claim to get those fees back.
4. Verify Fee Charges
Check your FBA fee charges often to ensure they match the fees Amazon lists. If you find any fees that are too high, file a claim to correct the mistake and get your money back.
5. Be Active and Keep Trying
Stay active in keeping track of your inventory and file claims as soon as needed.
If Amazon denies a claim, read their denial notice carefully. If you think they're wrong, appeal their decision. Also, don't hesitate to contact Amazon Seller Support for help or more information about your claim.
How to Find Out How Much Amazon Owes You
First, you need to check your inventory for any items that Amazon might have lost or damaged. This will help you figure out if Amazon owes you money. Consider employing an FBA reimbursement service to assist with this process.
Start by getting the Inventory Adjustments report from your Seller Central account on Amazon. This report lists all the changes made to your inventory. It includes information about items that got lost, items that were found, and changes in who owns what. You can download this report as either a .csv or .txt file. It will have data from the past 18 months.
Here’s how to get the report:
1. Log in to your Seller Central account.
2. Go to the 'Reports' section, then 'Fulfillment', and click on 'Inventory Adjustments'.
3. Choose to download the report as a .csv or .txt file.
4. Save the file on your computer.
When you open the report, look at the 'Reason' column. Amazon uses different codes, like letters and numbers, to describe what happened to your items. These codes also tell you if your total number of items has increased or decreased.
For FBA reimbursements, the important codes to look for are 'E' and 'M'. These codes mean that Amazon either lost or damaged your items. If you see these codes in your report, it means you can ask Amazon to pay you back for these items.
How to Get Amazon FBA Money Back for Lost Items
First, go to Amazon Seller Central and start a new case to ask for FBA reimbursement. Don't just send all your data to Amazon; sorting it first can help speed things up. To see what Amazon already paid you back for, check the Inventory Adjustments Report online. This lets you filter by reason.
Once you have the right info, head to the “Contact Us” page on Seller Central. Open a case about lost or damaged items and attach the necessary details.
After you submit your case, Amazon should respond in about 12 hours and process your reimbursement in 5 to 10 business days.
How to Claim FBA Money Back for Customer Returns
When customers ask for a return, Amazon often refunds them right away, even if they haven't returned the item yet. You can keep track of returns with the FBA returns report. If it says the return has started, it means Amazon has refunded the customer, but your item hasn't come back yet.
If more than 45 days pass after the return starts and you haven't got your items back, you need to ask Amazon for reimbursement.
How to Get Money Back for Items Amazon Measured Wrong
Amazon checks your inventory for defects or damage. Sometimes, their machines, called Cubiscans, wrongly measure your product due to package bulges. This can lead to higher FBA fees.
Watch out for wrong measurements by Amazon. Use the Amazon FBA fee calculator with your ASIN and compare the fees. If something seems off, ask Amazon to measure again. Remember, you can only ask for re-measurement every 6 months.
Once Amazon re-measures your items, they should pay you back for any extra fees. Make sure you get this reimbursement from Amazon.
What to Do if Amazon Denies Your FBA Reimbursement Claim
If Amazon denies your FBA reimbursement claim, don't worry. There are steps you can take to try and reverse the decision and possibly get the reimbursement you're after.
Look Over the Denial Notice: Amazon will send you a notice explaining why they denied your claim. It's important to read this carefully to understand their reasoning.
The notice might point out things you missed, like not having enough proof or missing documents.
Appeal the Decision: If you think Amazon made a mistake denying your claim, you can appeal. For your appeal, you'll need to give more details or proof to back up your claim.
This might include things like invoices or receipts. Make sure to clearly explain why you think your claim should be accepted and directly address the issues Amazon mentioned in their denial notice.
Talk to Seller Support: Besides appealing, you should also contact Amazon's Seller Support for extra help.
Talking to Seller Support lets you discuss your claim with Amazon's team, clear up any confusion, and get advice on what to do next.
They might offer helpful tips, suggest other ways to solve the problem, or even take your case to a higher level for another look.
Be ready to give them all the info they need and refer back to your original claim. When you talk to Amazon, stay professional and polite. Being clear and having good proof can make your case stronger and increase your chances of winning your appeal or finding a solution.
Stay on Track With Your Amazon FBA Reimbursements
The success of your business depends on more than just product quality. The delivery process to your customer, often managed by Amazon's FBA service, plays a significant role in your overall service quality.
You must closely monitor your Amazon inventory and apply for reimbursements when necessary. This will help you maximize your earnings while benefiting from Amazon's FBA service.
We know that staying on top of everything can be challenging. If you need expert help with your Amazon reimbursement claim, don’t hesitate to Contact Us.
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