In addition to order income, part of the income from selling goods on Amazon comes from platform compensation, that is, FBA inventory compensation fees.

When calculating profits in finance, it is difficult to pay attention to the cost of inventory compensation. Therefore, the data of the exported profit report is inaccurate. The boss makes judgments based on "fake data", which is easy to make mistakes.

Even, because the seller does not have the habit of regularly checking FBA inventory, the "inventory compensation fee" that Amazon platform "owes" to you has not been paid, and the compensation cannot be settled. The seller loses a lot of profits, but is still kept in the dark.

How much do you know about the easily overlooked FBA inventory compensation fees?

What is the Amazon Inventory Compensation Fee?

The Amazon inventory adjustment compensation fee refers to: the platform needs to pay the seller the corresponding compensation fee due to the platform error, resulting in damage or loss of the goods.

In this regard, Amazon officially said this:

"During the FBA service period, if the goods sent to the FBA warehouse are lost or damaged due to the platform, we will provide new goods with the same FNSKU to replace the goods, or provide you with compensation."

Common Amazon claims:

1) The goods stored in the FBA warehouse have been lost for more than 1 month.

2) The goods are damaged due to mistakes in the FBA warehouse, such as improper operation of the handling personnel.

3) During the FBA distribution process, the goods are lost or damaged.

4) Without the consent of the seller, the FBA warehouse makes a claim to destroy or discard the goods.

Amazon Claim Amount:

1) In the past 18 months, the median price of the item on Amazon.

2) In the past 18 months, the median price of a single product on Amazon for competing products of the same category.

How do I find out that Amazon needs to pay inventory compensation fees?

Amazon's business is spread all over the world, and there are countless goods in and out of warehouses, shelves, allocations, and transportation every day. The business volume is huge and cumbersome, and there will be times when mistakes are made.

As a seller, you must proactively find out that Amazon's inventory is abnormal and apply for a claim in time.

The first step is to monitor the inventory in real-time in Lingxing ERP and find problems in time

It is difficult for sellers to discover that FBA inventory is missing or damaged until Amazon sends an official report notification. In Leader ERP, inventory anomalies can be found in time.

Leading Star ERP has opened up the interface with Amazon's FBA warehouse and synchronized inventory in real time.

If inventory is lost or destroyed, it will be displayed in the "Inventory Removal" column of the Linkstar ERP inventory report. If the seller finds that the value is abnormal and has doubts about the value, he can proceed to the next step.

The second step, check the Amazon Inventory Reconciliation Report

That is, the Amazon Inventory Adjustment Report. In this report, sellers can view the inventory flow of the past 18 months, including records of sold items, returned orders, removed items, discovered damage, and lost items.

Looking at the report, it's important to note that:

1) Amazon Inventory Reconciliation Report, generated on the 5th of the following month.

2) The best way to check inventory is to use the FNSKU field in the report.

3) If in this report, any inventory discrepancy is found, it is recommended to expand the date range of the report to check the reason (such as an increase in inventory in the report, because the lost goods in previous months were found).

How to successfully file an Amazon claim?

If the Amazon FBA goods are found to be lost or damaged and Amazon has not compensated, the seller can apply for a claim and submit the application within 18 months from the date when the warehouse reports the loss or damage of the goods. Outside this period, it does not meet Amazon's compensation requirements .

To get a claim from Amazon, the following conditions must be met:

1) Lost or damaged goods have been registered at the FBA logistics office.

2) The goods must meet the requirements of FBA logistics and inventory.

3) The number of goods sent by the seller to FBA is exactly the same as the number planned when the shipment was created.

4) The goods are not in a state of waiting for disposal.

5) The goods are flawless, and there is no damage caused by the buyer.

6) When the buyer makes a claim, the sales account is in normal operation.

How do I file an Amazon claim?

Before filing a claim, check the report

Check Amazon's [Inventory Report] to determine when the goods were lost or damaged and the inventory code;

Check the Manage FBA Inventory Report to make sure that lost or damaged items are not available for sale;

Check the [Amazon Compensation Report] to find out whether compensation has been obtained. It is recommended to search by FNSKU and date to find the result.

Prepare relevant documents

Before applying for a claim, the seller had better prepare the information that may be used, including:

POD (logistics information), packing list, purchase contract, and payment invoice can all be found in Linkstar ERP.

Generally speaking, submitting these materials to Amazon can prove the value of the goods, and the success rate of the claim can be greatly improved.

In the Amazon background, submit a claim application

After finding the problem, if Amazon does not make a claim, the seller can submit a claim application in the Amazon background.

In the Amazon back office, select:

[Help] > [Need More Help] > [Get Support] > [Fulfillment by Amazon] > [Inventory Damaged at Warehouse] or [Inventory Lost at Warehouse], and then select [Investigate Damaged Inventory at FBA Warehouse] as appropriate ] or [Missing inventory at FBA warehouses].

In the pop-up interface, fill in the specific information, including:

Inform Amazon that you have inspected the report and found that the goods may be lost or damaged, and provide as much information as possible to prove the situation, such as discrepancies found in the report, as well as prepared materials, and ask Amazon to investigate.

Acceptance of Claim Results

After receiving the seller's application, Amazon will process it as soon as possible.

In Amazon's [Reports] > [Payments-Reimbursements Report], or [Amazon Reports-Payments-Date Range Reports] > [Type] > [Adjustment] > [FBA Inventory Reimbursement] > [Customer Return], sellers can view claims result and amount of compensation.

There is also a simpler way of acceptance. The [Profit Report] of LEADSTAR ERP will automatically update accurate Amazon revenue, expenditure and other profit-related data the next day, including FBA inventory compensation costs.

Knowing every detail of Amazon's expenses and calculating profits without omitting every expense and income, the calculated costs and profits can help the boss make accurate decisions and truly achieve refined operations.