Fulfillment by Amazon (FBA) makes it possible for just about anyone to make money as an e-commerce seller—even without their own logistics, years of experience, or specialized training in the area. But as ever, FBA has its pitfalls — but it's easy to master when done right. Here's a fact: Amazon owes most FBA sellers money for incorrect inventory counts and no automatic refunds.

Shocking, but true. According to a report by Forbes, Amazon is able to ship 2.5 billion items a year. For example, some of these items have been lost, stolen or destroyed upon receipt, during sorting and packaging, or in transit. So, how do you submit a reimbursement request to Amazon? Let's get started!

What is Amazon's reimbursement policy?

The process by which Amazon FBA sellers claim compensation for shipments that have disappeared or been harmed in Amazon’s custody is known as the Amazon Reimbursement Policy.

You must meet certain requirements to be eligible for compensation.

Who is eligible for compensation from Amazon?

Not all sellers are eligible for Amazon FBA refunds. You can use the following list to assess your eligibility:

1. Only non-defective items are eligible for a refund from Amazon.

2. The seller needs to enter an appropriate shipping plan, which details the components and characteristics of your shipment.

3. Sellers need to use the Amazon FBA program to fulfill damaged or lost orders.

4. Products are only reimbursed by Amazon if they comply with Amazon's rules and specifications.

5. The goods must also comply with FBA's inventory standards.

6. You cannot ask Amazon to drop your product and then ask for a refund.

7. You cannot be compensated if Amazon has the right to dispose of an item (eg due to expiration).

8. If a consumer damages your item and then returns it, your item will not be compensated.

9. Some products cannot be compensated in principle. These include, for example, foods including pet food, pharmaceuticals, cosmetics, glass products, etc.

You may be eligible for Amazon FBA compensation through any of the above methods. To make sure you know what to do if Amazon mis-sells one of your items, let's now take a closer look at Amazon's reimbursement process.

How do I file a reimbursement request with Amazon?

This is a question we often hear. You can ask Amazon for money you think it owes due to inventory discrepancies and errors by filing an Amazon reimbursement claim. For example, if a customer receives a refund without returning it, Amazon may owe you money. There will be more reasons later.

Amazon FBA Refund Procedure

If Amazon loses any of your shipments, you must file an inventory report for each individual claim. You will need to submit the following data for this report:

1. Amazon's seller ID.

2. ASIN for each missing item.

3. The total amount of each missing product.

4. What caused the loss? (Amazon items are damaged, lost, or destroyed)

5. After you complete the Amazon Inventory Report, Amazon will check and decide if you are eligible for reimbursement.

6. If one of their partners makes a mistake or accidentally loses your item, Amazon will handle the Amazon FBA seller's claim for the loss of that product.

7. If Amazon rejects your claim, you can file a complaint.

8. To ensure that you receive compensation for product loss, you must follow Amazon's specific Amazon reimbursement process.

9. To ensure you receive payment, be sure to read Amazon's instructions carefully and complete the FBA reimbursement report.

10. If one of your products is misplaced by Amazon, you can submit an Amazon FBA seller reimbursement application to receive compensation for the damages.

Reason for claiming reimbursement

Items are lost by Amazon during inbound shipping

Products may be lost during Amazon's restocking process. This can happen if Amazon buys from a source and ships it to an Amazon warehouse.

Items lost in outbound shipping by Amazon

Additionally, sellers need to be aware of Amazon’s reimbursement policy for warehouse employee errors. Loss of products in transit to consumers falls within the scope of this policy and can be due to a variety of reasons. When loading your purchase into a delivery vehicle, Amazon employees may misplace your item or scan the wrong product barcode.

Amazon lost the item after the shipment arrived at the warehouse

Your eligibility for compensation from Amazon may depend on whether Amazon received your product at one of its warehouses, but the missing item was discovered after Amazon opened the box.

The "sorting" and "picking" phases are where Amazon employees most often lose products.

Item was damaged during delivery to customer or Amazon warehouse return

Whenever Amazon employees pick and box your order, they do it quickly and efficiently.

That's why Amazon employees occasionally make mistakes. These mistakes can damage your product and make you liable for payment. Your FBA inventory can be destroyed while Amazon is fulfilling an order, or while a carrier is delivering a customer return. Another typical area of ​​Amazon's FBA reimbursement is this.

The Amazon Seller Central Damaged Inventory report contains information on damaged items

1. Sellers are protected by Amazon's FBA Loss and Damage Policy, which does not occur in these situations.

2. Misplaced merchandise in fulfillment facilities

3. Merchandise injured in fulfillment facility

4. Items that are damaged or lost in transit from the fulfillment center to the customer

5. Goods damaged or lost en route to fulfillment center (for FBA).

6. The value of shipments lost from fulfillment centers in the past 30 days

You'll have to pay close attention to these situations to determine if Amazon is compensating you. When an employee damages your item, Amazon can file a claim on your behalf and reimburse you for the damage.

Amazon Destroys Inventory Products Without Your Knowledge or Consent

This is another situation where you can ask Amazon for reimbursement. Certain inventory items are occasionally destroyed without the seller's knowledge or permission. It happens when a consumer sends back a damaged item that was previously ruled unfit for sale. The value of the destroyed item should be reimbursed to you by Amazon, however, occasionally it is never paid. You must verify that the FBA reimbursement is processed on your side.

FBA Inventory Reimbursement

The product was not returned by the customer – he still got a refund

Any e-commerce company deals with customer returns on a regular basis. For FBA sellers, Amazon handles customer returns and refunds. Customers will occasionally receive a refund from Amazon without the need to return the item.

Due to the high number of returns processed each day, this type of reimbursement request is relatively common.

Within the allotted time limit, Amazon must resolve the issue. If it fails to do so, you can file a claim for reimbursement to get the money back.

The most common reason for Amazon reimbursement is that a customer is refunded without actually returning the order. This is also one of the most common questions Amazon workers and sellers encounter. Here are a few reasons to file a chargeback claim:

1. Customers who received a refund but did not return the item can return it if they are not satisfied with the item they purchased or if the item arrived damaged. In some cases, consumers choose not to return the item, even though they have paid in full.

2. If the consumer does not return the original, they may request a replacement order. The customer received a replacement item, as in the situation described above, but did not send the first item back.

3. The customer successfully returned it, but Amazon didn't add it back to your inventory, so it wasn't reported as a return.

4. Customers may receive the wrong refund amount or the wrong price for the item they ordered. They may receive twice as much goods as they spend.

5. There is no restocking fee credited. For some returns, Amazon assesses a 20% restocking fee to buyers. After debiting this fee from your account, they will issue you a refund and repurchase. Occasionally, though, they won't pay you back.

Incorrect number of orders received from consumers

No matter how diligent you are, incorrect order processing is impossible to prevent. Buyers may double or triple the quantity of goods ordered. Unfortunately, neither Amazon nor the customer will send the excess back to you once they become aware of the problem. You must identify inconsistencies in inventory and order information to prevent this from happening. Once you are fully aware of the situation, you can consider filing a claim with Amazon.

Amazon FBA fees

There are pros and cons to Amazon FBA. The various Amazon FBA fees that you have to pay are one of the cons. Storage fees, fulfillment fees, and commission fees are just some of the FBA fees that sellers must pay. These fees will vary based on the category, size or type of shipping packaging of the item. In some cases, you will be overcharged or incorrectly charged. You are entitled to claim compensation for the amount taken from you for these overcharged fees, which may increase.

Operation of the fulfillment center

Based on your Inventory Adjustment Report, your products may have been misplaced or damaged in Amazon fulfillment centers or other third-party locations operated by online retailers. In this case, you have 18 months from the day you are notified of the loss or damage to submit a refund request.

You need to take this issue very seriously. Check your "Inventory Adjustment Report" to make sure the date and correction codes for items lost or damaged are correct. Based on the information in Inventory and Fulfillment by Amazon, verify that the item has not been retrieved and/or picked up in a saleable or damaged condition.

Now check the progress of each refund on the "Fulfillment Center Operations" or the "Get support" page in Seller Center. Please send an inquiry if necessary. Enter the so-called transaction item ID (TRID) in the relevant Amazon tool to report damaged items. FNSKU should be entered for missing items. Amazon may request further information, such as the date or location of damage or loss. Both can be found in the Inventory Adjustment Report.

American local buyers show video, main picture video, more cross-border e-commerce information Public account: cross-border video cici