Amazon Reimbursement Service Provider or Software?
If you‘re an Amazon seller, you‘ve likely dealt with the tedious process of pursuing reimbursements from Amazon. Between damaged inventory, incorrect fees, and mishandled returns, Amazon owes you back a surprising amount of money. But recovering these reimbursements takes significant time and expertise. Should you handle it solo, use software, or partner with a professional reimbursement service? Here‘s my recommendation as an ecommerce expert.
The best approach is to leverage both automated reimbursement software and expert services. The software acts as an efficient first pass to uncover potential issues. Then professionals handle the complex, high-dollar claims requiring experience and negotiation. This hybrid solution maximizes reimbursement recovery for your Amazon business.
Let‘s explore the pros and cons of each approach:
Reimbursement Software
Automated SaaS solutions use algorithms to analyze your Amazon transaction history and flag potential reimbursement opportunities.
Pros:
- Identify hard-to-find issues among millions of transactions
- Save time with automated analyses and claim filing
- Provide insightful reports revealing trends and patterns
- Affordable monthly fees based on sales volume
Cons:
- Lack human judgment leading to inaccurate claims
- Cannot handle nuanced, complex claim preparation and submission
- Limited customization to your unique needs
- Steep learning curve to set up and interpret reports
Cost: Approximately $100 to $300 per month
Professional Reimbursement Services
These services employ experts to manually identify and recover your Amazon reimbursements.
Pros:
- Experience navigating Amazon‘s complex policies
- Submit polished, compliant reimbursement claims
- Audit your account history up to 12+ months
- Save time on highly specialized processes
Cons:
- Expensive hourly fees can add up quickly
- Quality of service varies greatly by provider
- No guarantee all reimbursement opportunities are found
Cost: Approximately $150 to $250 per hour
Recommended Strategy
- Use automated software to run initial analyses and identify common reimbursement opportunities.
Self-investigate and submit basic reimbursement claims where needed.
Partner with an expert service provider to audit your account history and handle complex, high-dollar claims.
Closely manage the project and review regular reports from your providers.
This hybrid approach allows you to maximize reimbursement recovery in the most efficient, cost-effective manner. Software handles the heavy lifting upfront while experts focus on high-value specialized tasks.
Statistical Analysis of Reimbursement Recovery
According to a 2021 Jungle Scout survey of over 1,000 Amazon sellers:
- 63% were owed reimbursements from Amazon in the previous 12 months
- The average amount owed was $7,423 per seller
- Of that, only $3,711 per seller was actually reimbursed
- ** Meaning sellers recovered only 50% of owed reimbursements on average!
This analysis further demonstrates the urgent need for Amazon sellers to take proactive steps to improve their reimbursement recovery rates.
Examples of Common Reimbursement Opportunities
To provide a better idea of the types of issues software and services can identify, here are a few examples:
Fulfillment fees: You were charged for storage or shipping of products that Amazon lost or damaged.
Returns: Customer returned an item in unsalable condition but Amazon did not reimburse you.
Inventory reimbursements: Amazon lost or damaged your products while in their fulfillment centers.
Seller-fulfilled shipping: Amazon charged you incorrect shipping fees for seller-fulfilled orders.
Order errors: Amazon incorrectly cancelled orders or mishandled deliveries.
Advertising: Your sponsored ads were incorrectly disapproved or fees improperly charged.
Stranded inventory: Long-term storage fees charged for unsellable products.
Steps to Maximize Reimbursement Recovery
Follow these best practices to ensure you recoup the maximum amount of money owed by Amazon:
Use reimbursement software to automatically identify common issues at scale. Review its reports for reimbursement opportunities.
Submit routine reimbursement claims yourself that are straightforward. Don‘t pay a premium for simple submissions.
Hire an expert firm to audit your account history for complex issues. Let them handle tricky claim preparation and negotiation.
Give clear guidance to your providers on what types of claims to focus on and time period to analyze.
Closely manage projects instead of handing off with no oversight. Review regular reports and follow up.
Compare results across software and services. Verify their analyses match your internal data.
Don‘t leave money on the table! Be relentless in pursuing every valid reimbursement opportunity.
The Bottom Line
Recovering reimbursements from Amazon is a critical but often neglected component of ecommerce success. The numbers show most sellers leave substantial money owed on the table.
By combining automated software and human expertise, you can streamline the reimbursement process without breaking the bank. Let the technology do the heavy lifting to identify issues at scale. Then use professionals sparingly to supplement with an expert human touch on complex claims.
Just be sure to actively manage your providers, verify results, and stay on top of open reimbursements. With persistence and the right systems in place, you can achieve a best-in-class reimbursement recovery rate. The extra profits will be well worth the effort.
