Even with systems as efficient as Amazon's, errors can occur. Whether it’s due to misplaced inventory, damaged goods, or other logistical issues, these mistakes can impact sellers using Amazon’s Fulfillment by Amazon (FBA) service. Fortunately, Amazon has a seller reimbursement policy FBA in place to address such issues.
Amazon FBA reimbursements are compensations for sellers when items are lost, damaged, or otherwise mishandled within Amazon’s fulfillment network. Through reimbursements, sellers can recover missing funds when something goes wrong.
Understanding how to check reimbursement Amazon offers and when these reimbursements apply is crucial for any seller looking to maximize their revenue and ensure that their inventory is accurately accounted for.
What Is The Amazon FBA Reimbursement Policy?
It is a comprehensive set of rules, guidelines, and procedures that govern how Amazon handles reimbursements for lost, damaged, or otherwise mishandled items within its fulfillment network. It covers various topics, including Amazon seller return policy and Amazon seller refund policy. Also, this policy outlines the specific conditions under which reimbursements are issued and provides sellers with the framework to file claims when discrepancies arise.
The Amazon FBA seller reimbursement policy is designed to help sellers recover the value of affected goods. It’s essential to familiarize yourself with this policy to ensure you can take advantage of its protections.
Types of Reimbursements and How to Deal with Each
Depending on the error, there are six main types of reimbursement. It may be clear what is Amazon reimbursement, but how each of them is categorized? They are sorted by the state in which inventory encountered problems.
1 - Shipment to Amazon
In which state did the error occur?
When your inventory is shipped from your warehouse to the FBA center.
What is the time frame for filing a claim?
You have 9 months after inventory has been delivered to the FBA facility.
What is required to file the claim?
- Proof that you own the inventory
- Amazon Shipment ID
- Proof that your inventory was delivered to FBA
2 - Fulfillment Center Operations (FBA)
In which state did the error occur?
After your inventory arrives at the FBA center. Errors may happen in the warehouse or during shipment to customers.
What is the time frame for filing a claim?
You have 18 months after the Inventory Ledger report shows the loss or damage of inventory.
NOTE: it will change to 2 months on 2024-10-23.
What is required to file the claim?
- Inventory Ledger Report
- Knowing the exact date of the error, FCID, and the amount of the ASINs/FNSKUs affected
3 - Customer Return
In which state did the error occur?
When Amazon is handling your inventory's return to the customer.
What is the time frame for filing a claim?
Your time frame opens 60 days after Amazon issues the refund or replacement to your customer. As stated in the Amazon return policy for sellers, you then have 18 months to file the claim. NOTE: it will change to 4 months on 2024-10-23.
What is required to file the claim?
- Amazon Order ID
- Proof that Amazon refunded/replaced the item (FBA returns report)
- Proof that the item was returned to you (Customer returns report)
4 - Removals
In which state did the error occur?
When your inventory is delivered from the FBA center to your warehouse.
When can you file a claim?
- Lost in transit: 14 days after the last delivery tracking update.
- Damaged in transit: right after receiving inventory.
- Dispute about wrongly set inventory condition: within 30 days of delivery.
What is the time frame for filing a claim?
You have 18 months after the starting day. NOTE: it will change to 2.5 months on 2024-10-23.
What is required to file the claim?
- Removal Order ID
- Shipment ID and tracking information
- LPN Number
- List of the ASINs/FNSKUs affected
- Photos that prove the damage
5 - Unused Shipping Labels
In which state did the error occur?
When you pay for shipping labels but end up not using them.
What is the time frame for filing a claim?
You have 9 months after the shipment is created in your Seller Central account to file the claim.
What is required to file the claim?
Amazon Shipment ID
6 - Incorrect FBA Fees
In which state did the error occur?
Any time there is a fee to pay.
What are the most common fee errors?
- Item Category (Fulfillment Fee): Amazon charges your items at a tier of a different size than they are.
- Storage Fee: Amazon charges you for more units in FBA inventory than you have.
- Shipping Credits: they do not match what's on the carrier invoice.
- Overcharged Long-Term Storage: you are charged beyond what's in the Amazon long-term policy.
- Prep Service Fees: Amazon charges for different preparations than went on.
- Disposal Fee: Amazon charges you for more inventory that was disposed of.
What is the time frame for filing a claim?
You have 3 months to file the claim.
Eligibility Requirements for Reimbursements
Although through the seller reimbursement policy Amazon allows sellers to recover losses within the FBA program, it is important to meet the eligibility criteria. Otherwise, your claim might get denied.
Keep these eligibility requirements in mind when seeking reimbursement:
General Eligibility Requirements
- Your FBA registration has to be up-to-date; the items must be registered in the FBA program when the error happens.
- Your items have to comply with FBA’s product and inventory standards.
- You must verify that you sent the correct items and quantities as per your shipping plan, with no shipment cancellations.
- Items must not be defective or customer-damaged.
- Items must not have pending disposal or be disposed of by your own request or Amazon’s decision.
- Your seller account should remain in good standing throughout the claim process.
Case-Specific Eligibility Requirements
- You must provide proof of loss, damage, or other errors for which you want reimbursement.
- There is a time frame for submitting your claims (usually 18 months; see the section above for time frames for types of reimbursement). You must not miss the window.
- Your reimbursement claim must adhere to the Amazon Reimbursement Policy.
- You will have to provide various documentation to support your case (see the section above).
Meeting these eligibility criteria for your claims will improve your likelihood of success.
How Long Do Reimbursements Take?
As per Amazon seller reimbursement policy, reimbursement claims are processed within 90 days. However, if further information is needed, the process may extend beyond this timeframe. Regular follow-ups help speed up the resolution and reach faster claims processing.
Here’s an overview of the Amazon reimbursement timeline:
Submission: The process starts when you submit a reimbursement request through Seller Central, providing details and evidence.
Review: Amazon reviews your request to assess the claim’s validity, with timing depending on the issue and request volume.
Resolution: If approved, the reimbursement will be processed.
Communication: Amazon will update you on your claim status and may request additional information; respond promptly to keep the process moving.
What Can Sellers Do If Reimbursement Request Is Denied?
As stated in the Amazon seller policy, sellers have 90 days to appeal a denied reimbursement request.
Before appealing, respond to the case with additional evidence to strengthen your claim. If the request is still denied, you can proceed with an appeal.
Throughout the appeal process, you may need to engage in multiple rounds of communication with Amazon. This involves responding promptly to any additional information requests and following up to track the status of your appeal.
The process can be time-consuming and challenging, often requiring expertise to ensure a successful outcome. To streamline this process, consider leveraging services like Regainables.
Regainables specializes in recovering reimbursements for FBA sellers, reviewing up to 18 months of your sales data to uncover potential reimbursements. Our service can recover up to 3% of your total sales revenue.
By entrusting the appeal process to experts, you can boost your chances of a successful resolution.
