Decoding Amazon Reimbursement: What It Is And How It Works

September 9, 2024

From time to time, Amazon will lose your inventory, use incorrect fees, or slip up in other ways. It happens. And although Amazon has a refund policy, the process is complex and time-consuming. Often, sellers don't even know about errors if they're not keeping a close eye on their accounts. Meaning they might be losing profits.

You might be losing, too.

So, what is Amazon reimbursement? Let's look at Amazon reimbursement policy and how you can get your refunds. It's your money, after all, and it's rightfully owed to you.

What Are Amazon FBA Reimbursements?

These reimbursements are financial compensations for your losses related to your inventory that was stored and fulfilled through the FBA.

If you're an FBA seller, you entrust Amazon to handle your orders, which goes all the way from storage to shipping. When errors happen, Amazon is responsible for them – and for covering your losses. That's where Amazon FBA Refund Reimbursement services come into play. But you have to make an Amazon reimbursement report and Amazon reimbursement audit yourself.

The Amazon FBA Reimbursement Policy

This policy is like a rulebook that covers all the instances in which you can request a refund. It includes various types of errors, such as unaccounted inventory, damages, overpriced fees, mishandled returns, and so on.

When things go wrong with FBA operations, the policy is where you should go for guidance.

Amazon Reimbursement Types

You can go over the Amazon Reimbursement policy to learn about every type in-depth, but here is a concise list of the most common ones.

Lost Inventory

Problem: your inventory becomes missing or unaccounted for at the Amazon warehouses, making you eligible for Amazon FBA inventory reimbursements.

Reason: this might happen because of different things like things being put in the wrong place, mistakes in shipping, or problems with how Amazon manages inventory internally.

Damaged Inventory

Problem: your inventory is damaged at the Amazon warehouses

Reason: mishandling during fulfillment/transportation or inadequate packaging. Sometimes Amazon issues reimbursement as soon as the damage is noticed, but many damaged goods go unnoticed.
Types of damage include: warehouse handling damage (items are damaged by Amazon warehouse workers), transportation damage (items are damaged in transit).

Overcharged Fees

Problem: Amazon charges fees for all FBA services like fulfillment, weight handling, storage, removals, or disposals. Sometimes errors occur, and you get overcharged.

Reason: miscalculation in storage fees due to incorrect measurements / incorrect weight / charging products that weren't actually removed / etc.

Inaccurate Refunds / Missing Returns

Problem: Amazon refunded the wrong amount of money / charged unnecessary fees, or the refund was not initiated by customer returns, warranting Amazon FBA return label reimbursements.

Reason: the product was returned by the customer but was not processed by Amazon.

Inbound Shipment Problems

Problem: issues with receiving and/or processing of inventory during inbound shipments.

Reason: inventory was misplaced or miscounted in Amazon warehouses when they received your shipments

How Much Does Amazon Owe You?

A big part of making sure you get the money you're owed is understanding how Amazon figures it out themselves.

Although there are Amazon reimbursement apps and Amazon reimbursement software that make it easier, it’s possible to do it manually, and here’s how.

For how to check reimbursement, Amazon settlement is where you need to go. The reports stored there will show you how much they say you should get back for each item that's missing or broken. Then, compare that data with the expected reimbursement values from your records.

If you find any differences, you can argue your case with proof to try to get the right amount of money back. After all, it's according to Amazon's rules.

Why do discrepancies happen? If reimbursement Amazon lacks information to calculate estimated product prices, they might guess based on how much similar products sell for. And that may not align with your actual products, so the reimbursements aren't accurate, either.

Since discrepancies and errors happen all the time, it's a good thing Amazon offers a way to get your money back. However, the auditing process takes a lot of time and effort on your behalf.

That's where Amazon FBA reimbursement services like Regainables come in. Signing up for Regainables to do the hard work for you will save you tons of time. Having an Amazon reimbursement tool will pay off as soon as your owed money starts coming in.

How to Make an Amazon Reimbursement Claim

So, how do you file a reimbursement claim Amazon will accept? It depends on the issue and when it occurred during the fulfillment process.

Shipment to Amazon

The problem happened: during shipment to Amazon.

Follow: the “Shipment to Amazon” process.

You may need to provide: shipment details like tracking numbers, delivery proofs, and evidence of loss or damage.

Fulfillment Center Operations

The problem happened: within Amazon's fulfillment centers.

Follow: the "Fulfillment Center Operations" process.

You may need to provide: inventory reconciliation reports or other supporting documents.

FBA Customer Returns

The problem happened: handling customer returns (processing errors or lost items).

Follow: the "FBA Customer Returns" process.

You may need to provide: details about specific orders that are being returned.

Removals

The problem happened: handling an Amazon removal order (unaccounted, damaged, or disposed items during removal).

Follow: the "Removals" process.

You may need to provide: supporting documentation regarding your removal orders.

Getting Amazon Seller Reimbursements The Easy Way

If you want to keep your profits, you need to monitor and audit your orders constantly. Amazon FBA seller reimbursements require a ton of time and effort. Most sellers are surprised when they learn how long does it take for Amazon reimbursements.

Sellers need to continuously check their records against Amazon's, ensuring the numbers match up for each product and its stock levels, as well as the fees they're charged. And finding discrepancies is just the start. Sellers also have to handle the process of filing and managing claims.

Fortunately, you can have Regainables do all of that for you.

FBA sellers often lose up to 3% of their potential yearly earnings due to FBA errors. Amazon audit reimbursement services can make sure that percent stays in your pocket.

Regainables is one of the best Amazon reimbursement services. It simplifies the entire process. You may not know how to file a reimbursement claim on Amazon or how to get Amazon receipt for reimbursement.

We do it for you. Our Amazon reimbursement specialists examine your account, document any discrepancies, handle the claims process, and all you need to do is decide how to use your re-earned money.

Contact us today and regain what you've lost.