Running an eCommerce company is easier than you imagine. A large part of this is due to Amazon and their FBA service, where your items are stored, packed, and shipped out of Amazon’s warehouses. This is why 90% of Amazon sellers use FBA.
While FBA is convenient, it isn’t perfect. Orders can get lost and damaged, or the warehouse staff may have incorrectly packed the order. What happens if you run into order issues with FBA? Sellers can take advantage of the Amazon FBA reimbursement service.
This post will outline Amazon FBA refunds, the program’s benefits, if you qualify for a refund, how to initiate a refund, and what to do if you run into further issues.
Overview of Amazon FBA Reimbursement
Amazon FBA reimbursement is the process of refunding sellers when they suffer a loss at Amazon’s expense. If you’re entitled to a refund, Amazon will reimburse any fees and costs associated with the inventory loss.
Taking advantage of FBA’s reimbursement is integral since these order issues affect profitability. But as a seller, it can be difficult to know which refunds you’re entitled to and how to contact Amazon. Keeping up with every transaction and discovering issues with your orders is also tedious.
Benefits Amazon FBA Reimbursement
There are many reasons why Amazon offers an FBA reimbursement process. First off, they want customers and sellers to choose Amazon for shopping and selling needs, and will take every measure to provide the best service.
Here are other benefits of the Amazon FBA reimbursement process:
- Customer trust
- Protects sellers
- Error reduction on Amazon’s part
- Timely claims submission process
- Maximized reimbursement
- Dedicated support
Which Items Can Amazon Reimburse?
There are a few situations where you qualify for an Amazon FBA reimbursement. Here are the most common examples.
Damaged Inventory
If Amazon damages your inventory during order or shipping fulfillment, you can receive an Amazon FBA inventory reimbursement for your losses.
Amazon’s damaged inventory policy will cover sellers in these cases:
- Damaged shipments on the way to a fulfillment center
- Items damaged at the fulfillment center
- Damaged shipments on the way to the customer
While Amazon will cover your losses in these cases, sellers must proactively monitor their inventory, orders, and shipments. Amazon may initiate a case, but you must file a claim in certain situations. We’ll discuss this more in-depth later.
Order Quantity Issues
You may encounter order fulfillment issues even if your items arrive at the fulfillment center. A common example is order quantity issues when warehouse workers include the incorrect number of items in a parcel. For example, customers may receive two by mistake if they order one item.
If the customer doesn’t return the second item, you lose the product and potential revenue. The best way to track these errors is to know your order details and keep up with your inventory report.
Customer Returns
While FBA handles customer returns and refunds, there are times when Amazon messes up. For example, Amazon may mistakenly refund customers when they don’t initiate one. In this case, you can receive a reimbursement for Amazon’s mistake. You can also receive a refund for a customer return if Amazon doesn’t receive the returned product after the refund was initiated.
FBA Fee Errors
As a seller, you pay many FBA fees. Could you get any of these refunded during an Amazon FBA reimbursement? It depends.
If you can prove Amazon overcharged you, you’re entitled to a refund. FBA fees are different for every category and may change over time, so keeping track of the costs you’re paying is vital.
Lost Inventory
Your inventory may get lost on the way to an Amazon fulfillment center or while in the warehouse, or an order may get lost in transit. Lost inventory includes full orders or parcels with missing and incomplete items.
The best way to know about lost products and receive an FBA inventory reimbursement is to keep up with your inventory reports. These reports offer information about your inventory, including sellable and unsellable items, inventory age, amount, and more.
How to Initiate an Amazon FBA Reimbursement
There are a couple of ways to claim an Amazon FBA reimbursement. You can file the claim yourself and seek help from a third party. There are also many tools you can use to ease the process.
DIY
If you look through your inventory and order reports and see anything incorrect, you can file a claim with Amazon. While filing a claim with Amazon can be complicated, this is the cheapest method.
The method to file a claim depends on the issue. For example, if you have lost items, contact Seller Central Support and provide either the FNSKU (for inventory missing from Amazon warehouses) or the transaction ID (for items missing in a customer’s order).
You may still have to consider other information when filing your claim, such as the warehouse return policy.
Third Party
You can also outsource FBA claims to a third-party Amazon data expert. You’ll send them your reports, and they can find the needed information and submit the claim for you.
While this is less work for you, it does cost money, and another party will need to access your Seller Central account, as well as your inventory and order data.
Tools to Use
Thanks to automation, navigating Amazon errors and claims is easier than ever. Third-party tools like Refundly, Amzrefund, and Eva can audit your reports and detect potential errors.
Some of these subscriptions include access to a case management team, which will manage the entire claims process for you.
While these tools usually cost money, you’ll have a stronger case and can get your claims approved and refund received faster than manually filing your claim.
What If You Run Into Issues With Amazon?
Before Amazon initiates a refund, they will inspect all claims to ensure you’re entitled to a reimbursement. There may come a time when they don’t see you eligible for compensation, such as if there’s no proof Amazon was responsible for the damaged or missing items.
Certain situations are also more difficult to prove under the Amazon FBA reimbursement policy. For example, let’s say a customer was the one to reach out about a damaged order. Amazon may not approve this case, since there’s no proof the carrier or warehouse staff damaged the item.
In addition, Amazon may experience delays in approving or refunding you.
What are your options as a seller? The only control you have is to track the claim and send reminders to Amazon. You can also use a third party Amazon data expert or tool to expedite the claims process.
Amazon FBA Reimbursement FAQs
How long will it take to get an Amazon reimbursement?
This depends on the claim. In some cases, Amazon will process the refund quickly, such as in a few days. Complex cases will require more research and documentation, and they may take weeks or months to resolve.
Does Amazon charge reimbursement fees?
Amazon usually doesn’t charge a reimbursement fee. That said, they may under certain conditions. It’s best to compare the reimbursement with your damages to ensure you’re receiving the full refund.
My customer said their order was damaged but they never returned the product. Will I receive an FBA reimbursement?
In this case, Amazon will refund the customer but will need proof that their warehouse staff or carriers damaged the item. If there’s no proof and the customer never sent the item back, you may have to eat the damaged cost under the FBA inventory reimbursement policy.
Amazon FBA Reimbursement Benefits Sellers and Customers
There are many benefits to Amazon’s FBA program, but issues can arise. Your inventory can get damaged at the warehouse or your orders lost in transit. Fortunately, Amazon FBA reimbursement can guarantee you’ll get compensated for your losses if these issues occur.
That said, you must file a claim and prove Amazon was at fault if they hadn’t already refunded you. Sellers can do this themselves or use a third-party, such as an Amazon data expert or a tool.
You can also partner with an eCommerce agency. When you work with AMZ Advisers, we match you with a dedicated team. We will monitor your inventory, orders, and eCommerce bookkeeping, and will reach out if we catch any problems.
Are you ready to get started? Contact us today.
Author
Stephanie Jensen has been writing e-commerce content for seven years, and her copy has helped numerous stores rank on Amazon. Follow her on LinkedIn for more insight into freelance writing and creating high-quality content.
