Fulfilment by Amazon (FBA) is a service that allows merchants to extend their businesses by handling shipping, packing, and customer fulfilment. When you register for FBA, Amazon assumes responsibility for any inventory damage that occurs during its operations. But how can you be compensated as a supplier for these losses? Amazon’s reimbursement services come in handy here. It’s critical to keep track of reimbursements so you can get the money you deserve. We’ll show you how to get your Amazon FBA reimbursement by using Seller Central.
Amazon continues to be the world’s largest e-commerce platform. It has the most active customers, suppliers, and revenue streams. While Amazon has a long list of accomplishments, there have been a few setbacks along the road.
According to Market.us, Amazon’s Fulfillment by Amazon (FBA) service sends out around 1.6 million shipments every day. As a result, certain unheard-of product harm occurs along the road. As a result, according to the FBA Compensation Policy, sellers are frequently entitled to reimbursement.
What exactly are Amazon FBA reimbursements?
FBA fee reimbursements are when you get a refund for a Fulfillment by Amazon fee that you shouldn’t have to pay because of their terms of service.
Unfortunately, unless you should not have to pay the cost, you will not be repaid. Amazon doesn’t randomly reimburse fees, but wouldn’t it be lovely if they did?
Tracking FBA charge issues and requesting refunds are only a few of the downsides of selling on Amazon, which also include a lack of branding and control over your consumer base.
Amazon FBA inventory reimbursement policy
If an item you ship to Amazon as part of the Fulfillment by Amazon (FBA) programme is lost or destroyed at a facility or by a carrier managed by Amazon or on behalf of Amazon, Amazon will either replace it with a new item of the same FNSKU or compensate the seller. (Amazon.com)
As an Amazon seller, you should be aware of this function and familiar with its norms and rules. Here’s how we broke it down for you.
Amazon compares prices using the following pricing indicators:
- Amazon’s current list price for the item
- Over the last 90 days, the average price at which you’ve sold the item on Amazon.
- The current Amazon average list price for the identical item from other vendors
- Over the last 365 days, the average price at which other sellers have sold the identical item.
They will assign an estimated selling price based on the price of a comparable product if they do not have enough information to determine the estimated sale price of a unit using the price indicators indicated above. To help assess that value, Amazon FBA may request further information or documentation.
Criteria for Amazon FBA refund eligibility
The following are the terms and conditions that must be met for an item to be eligible for Amazon FBA reimbursement:
- When an item is lost or damaged, it is registered in FBA.
- FBA product criteria and restrictions, as well as FBA inventory requirements, are met.
- You sent us the items and quantities specified in your delivery plan.
- The item is not in the process of being disposed of or has been disposed of because we have exercised our right to do so.
- The device is in good working order and has not been damaged by a customer.
- When you file a claim for a lost or damaged item, your selling account is in regular condition.
Dangerous goods, toxic materials, heat-sensitive products, and other items are prohibited from being sold or reimbursed on Amazon. Before submitting your merchandise, make it a practice to check Amazon Seller Central’s list of prohibited items.
Based on the four circumstances above, there are numerous procedures for collecting your FBA reimbursement. To prevent being identified as a violation, keep track of your reimbursement requests and avoid asking for several reimbursements from Amazon at the same time.
What are the most common scenarios for Amazon FBA reimbursement?
As a vendor, you will be responsible for the majority of the work; no one will provide you with instructions, so be prepared. Because the Amazon FBA charge structure is so convoluted, and there is so much Amazon daily sales volume, problems are going to arise. We’ve divided the many types of reimbursements into key categories to help you understand them better. Take a look!
1. Inbound Shipment Problems
As a seller, you want your produce/inventory to be received, placed, and processed correctly by Amazon FBA facilities. That is what one would expect from Amazon, yet there are a few concerns that can arise:
- Missing Units: Amazon may not receive or scan in all of the units you get for various reasons.
- Inbound Carrier Loss or Damage: It may be difficult to believe, but the inbound carrier may lose or misplace some of your inventory. As a result, you must choose your inbound seller with caution. You must choose someone who is well-liked by others or who can be trusted.
- After the shipment is completed, the stock is deducted: You might be able to view the correct number of units received by Amazon after the shipment closes. However, some things may be deducted after the package has been closed for unclear reasons. As a vendor, you must be available at all times and maintain a close eye on your inventory. Under Amazon FBA’s terms of service, the merchandise you ship is protected, so if it is lost or destroyed after you deliver it, you are entitled to reimbursement.
How much will you be reimbursed?
The item’s average retail price (not what you are listing it for at that time).
2. Inventory that has gone missing
Inventory might go missing at the warehouse for a variety of reasons, including being mixed up with inventory from other merchants or being transported to another location. It doesn’t matter how it happened or when it happened; the fact is that it did.
A significant portion of your inventory is missing and cannot be ascribed to recent orders. What causes this to happen? It occurs primarily as a result of Amazon’s large volume of products and orders; this is a pretty typical occurrence, with many merchants losing a few pieces each month.
3. Inventory can harm
As a seller on one of the largest eCommerce platforms, you must be mentally prepared for any challenge. Employees (not on purpose) who are completing orders or couriers who are returning consumers to the Amazon warehouse can harm your FBA-house inventory.
This is another common reimbursement category due to the volume of products. Amazon staff are also people, and accidents do happen when people move things quickly. As a result, it is only natural to remain calm and find a solution to the problem.
4. Problems with Customer Returns
This is one of the most commonly used Amazon FBA reimbursement categories. This category accounts for the majority of customer difficulties, and with so many returns processed each day, troubles are unavoidable.
- Uncredited Restocking Cost: Amazon can charge a restocking fee of up to 20%, which they deduct from your account for some returns, but not all returns. They may neglect to repay you the same amount after restocking.
- Double the Refund: In some situations, the consumer may receive a refund for the incorrect amount or for more items than they returned. For example, a consumer returns one device and is reimbursed for two others.
- Goods Not Returned: Before returning a product, the customer may obtain the correct refund amount.
- Replacement Item Received: In some situations, the consumer may receive a replacement item but not return the original.
- Unsellable Goods: A returned product may be unsellable, in which case Amazon should compensate the seller.
- Return Product Not Added to Inventory: In some circumstances, a client can return a product, but it is not added back to your inventory for various reasons.
Amazon must compensate you if your inventory is lost or damaged during the fulfilment process. Customers have 60 days to 18 months from the date of their refund or replacement to file a customer returns claim. Check the Manage FBA Returns report to see if Amazon has refunded or replaced the item on your FBA order before filing a claim.
After you’ve double-checked the information above, use Amazon’s status checker to register a reimbursement claim by entering the client order ID.
5. Inventory destroyed
If a returned item is unsellable or severely damaged, it cannot be used or even returned to inventory. Without your permission, Amazon can destroy it.
Don’t worry; whenever this happens, Amazon is supposed to refund you for the same item’s value. However, the compensation does not always arrive. As a seller, it’s your responsibility to ensure that reimbursements are executed on time.
How Do You Recognize Amazon FBA Returns?
Here’s a quick way to keep track of what’s been returned.
- Log in to Seller Central and select Reports from the top menu.
- Under reports, select the fulfilment link.
- From the left-hand column, select returns.
To create a Returns Report, follow these steps:
- Hover the pointer over reports at the top of the screen when logged into Seller Central.
- Under reports, click the payments option.
- Filter the view by refund, choose a time frame, and then click Update.
This way you can find out what items have been reimbursed to your consumers.
How do Amazon sellers submit a claim for Amazon FBA reimbursement?
As an Amazon seller, you should proceed with caution when filing Amazon reimbursement requests. Simple errors might result in your Amazon seller account being suspended or terminated. The most crucial thing you should avoid is attempting to claim your return using an automated FBA reimbursement programme. The use of automated tools to open cases is prohibited under Amazon policy.
Furthermore, opening too many cases at the same time may result in a warning or even account suspension. So you’re probably asking, how can I get compensated from Amazon? We have provided examples and methods for you to use.
What is the best way to check for Amazon FBA reimbursements?
The procedure for filing a claim differs depending on where your item was lost or damaged within the fulfilment process:
- Delivery to Amazon
- Operation of fulfilment centres
- Returns from FBA customers
- Removals
1. Delivery to Amazon
This section is for claims involving things that were lost or damaged in transit to us. You can register a claim once a shipment is marked as eligible for investigation on the Reconcile tab of the Summary page in your shipping workflow.
Make sure you register a claim within 9 months of the verified delivery date to an Amazon fulfilment centre or a third-party facility on Amazon’s behalf.
You can file a claim after verifying the return and the reimbursement report (to ensure you have not already been reimbursed).
Use the Reconcile tab to file a claim for missing units. To file a claim for damaged units, go to Seller Central’s Contact Us page and fill out the form.
To get a list of the documentation you’ll need to file a claim, click here.
2. Fulfillment Center operations
After the Amazon Fulfillment Centers receive them from you, this category applies to qualifying items that are lost or damaged by an Amazon FBA fulfilment centre or a facility operated on behalf of Amazon. Your Inventory Adjustment report will detail these missing or damaged products.
Make sure you file a claim within 18 months of the item becoming missing or being damaged on your Inventory Adjustment report.
3. Returns for FBA customers
This category includes items that were lost or damaged during your FBA customer order. Your seller account’s merchandise must have already been refunded or replaced by Amazon. This category’s refund procedure is governed by the FBA Customer Return Policy.
After 45 days and within 18 months after the customer refund or replacement has been processed, you can file a customer return claim for FBA customer returns.
4. Removals
You can make a customer return claim no sooner than 45 days and no later than 18 months after the client receives a refund or replacement under this type of compensation. It’s vital to remember that the item couldn’t have been returned to you because you broke a programme policy or other Amazon selling terms and conditions. The loss or damage had to have happened after the item had left an Amazon facility.
You must file a claim for items lost in transit to your return shipping address within 14 days of the last verified movement of your removal package. You may file a claim for items damaged in transit as soon as you get them.
Final Thoughts
Being an Amazon seller is a difficult job. There’s a lot to keep track of, particularly when it comes to inventory. If you’ve ever sold on Amazon and haven’t checked your reimbursement eligibility, now is the time to do so.
The more you sell on Amazon, the more inventory you’ll have to send them, and the more things they’ll lose or damage. We operate on razor-thin margins in retail, particularly on the internet, and getting money back for this inventory is vital to maintaining a profitable business.
