Get the Amazon Reimbursements You Deserve: A Step-by-Step Guide
As an Amazon seller, you work hard to build your business. But despite your best efforts, you can still face inventory losses or erroneous fees that hurt your bottom line. The good news is, you can recover some of these costs through Amazon‘s reimbursement program. This comprehensive 2300+ word guide will walk you through everything you need to know to successfully claim the reimbursements you deserve.
What are Amazon Reimbursements and Why Do They Matter?
First, let‘s make sure we‘re on the same page regarding what an Amazon reimbursement is.
Simply put, an Amazon reimbursement is compensation you receive from Amazon to cover losses or errors like:
- Lost or damaged inventory while in Amazon‘s fulfillment centers
- Items refunded to customers but not returned
- Overcharges on fees like storage, shipping, or commissions
Reimbursements help Amazon sellers recoup potentially substantial amounts of lost profits. According to Jungle Scout, reimbursement amounts can range from a few dollars to thousands in extreme cases.
Without reimbursements, these inventory and fee issues could seriously hurt your business‘s bottom line. That‘s why it‘s so important to understand the reimbursement process inside and out.
When you know how to quickly identify and claim reimbursements you‘re owed, you can recover lost revenue and maintain healthy profit margins.
So let‘s dive into everything you need to know…
Refunds vs. Reimbursements: What‘s the Difference?
Before going any further, let‘s clarify the difference between refunds and reimbursements. Many sellers use these terms interchangeably, but they refer to distinct processes.
Refunds
Refunds are what buyers receive when they return an item they purchased from you back to Amazon.
The typical refund process goes like this:
- Customer initiates a return in their Amazon account
- Amazon issues them a prepaid return shipping label
- Customer ships item back to Amazon
- Amazon processes the return
- Refund is issued to the customer‘s original payment method
Refunds deduct funds from your seller account. But keep reading, because…
Reimbursements
Reimbursements are what Amazon pays you back for handling customer refunds and other inventory issues.
When Amazon issues a customer refund, they initially deduct the amount from your account right away. This is why monitoring reimbursements is key—it‘s how you recover the funds credited to buyers.
The reimbursement process involves submitting claims to Amazon with details on your inventory losses or fees you were overcharged. I‘ll explain exactly how to file for reimbursements shortly.
But first, let‘s look at…
Types of Inventory and Fees Eligible for Reimbursement
Not all inventory issues or fees are eligible for reimbursement. Amazon has specific policies around what types of losses they will reimburse.
According to Amazon‘s reimbursement policy guidelines, some common eligible scenarios include:
1. Lost or Damaged Inventory in Amazon Warehouses
Despite Amazon‘s large-scale automation, warehouse errors still occur. According to MWPVL International, a supply chain consultancy, Amazon‘s warehouse operations accuracy rate ranges from only 93-97%.
This means inventory can be misplaced or damaged at fulfillment centers. When this happens, you have the right to file for reimbursement.
Some examples include:
- Item was lost due to being placed in wrong bin location
- Inventory damage caused by mishandling in warehouse
2. Damage During Shipping
Your inventory goes through a lot of transit between Amazon‘s facilities and to customers. Items can get bumped and banged around in the process.
You may notice damage like:
- Torn packaging
- Cracked screens or dents on products
- Leaking liquids
Damaged products may be considered unfulfillable by Amazon. In these cases, you can claim reimbursement for the devalued items.
3. Customer Returns
Customer return scenarios like the following are eligible for reimbursement:
- Customer was refunded but never returned the item.
- Returned item doesn‘t match what was originally shipped.
- You were not reimbursed for return shipping fees deducted.
According to National Retail Federation (NRF) data, over 20% of items purchased online are returned. So you need to closely monitor return reimbursements.
4. Overcharged Fees
With all the different fees involved in FBA, occasional billing errors can occur. Some examples include:
- Being charged storage fees for inventory that already sold
- Erroneous prep service or weight handling fees
- Incorrect commissions on products sold
Always verify your monthly fee totals and request reimbursements for any overages found. This can quickly add up to hundreds in unearned fees.
Now that you know what types of issues are eligible, let‘s get into the details on how to claim your reimbursements…
Step-by-Step Guide to Filing Amazon Reimbursement Claims
The key to getting the reimbursements you deserve is submitting complete, well-documented claims. Follow these steps:
Step 1: Review Inventory and Fee Reports
Your first step is regularly checking your inventory and settlement reports in Seller Central. This helps you quickly identify:
- Any inventory losses or adjustments
- Fees charged for the period
Look for discrepancies between your records and Amazon‘s reports. Pay attention to:
- Units received vs. units shipped to Amazon
- Fees that exceed your typical amounts
Tip: Download reconciliation tools like Scoutify to automate this reporting.
Step 2: Verify Eligibility
Once you‘ve identified a potential issue, verify that it meets the eligibility criteria outlined earlier.
Double check that the loss or fee:
- Falls within the permitted reimbursement time limits (9 months for inventory, 60 days for fees)
- Doesn‘t relate to prohibited items or other ineligible situations
This saves you time by avoiding submissions that will get rejected anyway.
Step 3: Gather Supporting Documentation
Amazon requires documentation to verify your claims.
For inventory issues, provide:
- Order invoices
- Shipping plan with item descriptions and FNSKUs
- Photographic evidence of damage
For fee adjustments, submit:
- Screenshots of the charges from your reports
- Reasons showing the fees were applied in error
Tip: Keep accurate inventory records and bookkeeping to streamline this process.
Step 4: Submit Your Reimbursement Claim
Once you‘ve compiled your documentation, you‘re ready to file your claim.
For inventory reimbursements:
- Go to the "Contact Us" page in Seller Central
- Choose the Inventory Reimbursement option
- Select the reason that matches your issue
- Input your item details, FNSKU or shipment ID
- Upload supporting documents
For fee adjustments:
- Go to "Contact Us" and select the Accounting Assistance category
- Choose Fee Adjustment and explain the overcharge
- Input the relevant invoice numbers
- Attach documentation to back up your claim
Amazon will review your claim and issue your reimbursement if approved. Expect a 2-3 week turnaround.
Step 5: Follow Up on Your Claim Status
Don‘t just submit your claim and forget about it. Log into your reimbursement report regularly to monitor status.
If your claim is rejected, determine why and modify your information before re-submitting. Persistence pays off.
Pro Tip: Install an FBA reimbursement tracker like ReFunds Manager to automatically follow up for you.
Best Practices for Smooth Reimbursements
To make your reimbursements go quickly and smoothly:
- Avoid "reimbursement bots": Automated tools violate Amazon‘s fair use policies.
- Create claim templates: This speeds up submissions for common issues.
- Check return status diligently: This helps catch claims before windows close.
- Organize inbound shipments: Confirm units received match packing slips.
- Double check order details: Reduces shipment and fee discrepancies.
- Consider reconciliation software: Automates reporting for faster oversight.
- Enlist help for account management: Agencies like Seller Interactive offer reimbursement filing services.
The bottom line is that staying on top of your inventory and fees is critical for minimizing losses and speeding up repayments when issues do occur.
Don‘t Leave Money On The Table
As you can see, with the right systems and diligence, you can claim reimbursements fairly seamlessly and avoid losing profits.
Don‘t let lapses in oversight erode your margins. Follow this guide to expertly identify and efficiently claim all the Amazon reimbursements you‘re owed.
Remember—that lost revenue can be the difference between just scraping by and fully thriving with your Amazon FBA business. So take control of your inventory, validate those fees, and get the reimbursements you deserve!
