Amazon’s reimbursement policy is undergoing significant changes in 2024, impacting how sellers manage lost items, customer returns, and financial losses. Understanding the Amazon reimbursement policy update is crucial for maintaining profitability and efficient inventory management. 

Let’s break down the latest changes, what they mean for sellers, and how to handle them effectively.

What is Amazon FBA Reimbursement?

Fulfillment by Amazon (FBA) allows sellers to store their products in Amazon’s fulfillment centers. Amazon takes care of storage, packaging, and shipping. However, sometimes items are lost or damaged in these centers. The FBA reimbursement policy ensures that sellers are compensated for these losses.

What’s New in Amazon’s Reimbursement Policy?

Starting November 1, 2024, Amazon will proactively reimburse sellers for FBA items that are lost in fulfillment centers. 

Additionally, the eligibility window for filing claims is being updated on October 23, 2024. These changes aim to simplify the reimbursement process and minimize the need for manual claims, offering a more efficient experience for sellers.

Proactive Reimbursement for Lost FBA Items

One of the key updates is Amazon’s move towards proactive reimbursement for lost items. 

This means that once an item is reported lost in a fulfillment center, Amazon will automatically issue the reimbursement, which can be tracked in the Reimbursements report on Seller Central. 

This update reduces the administrative burden on sellers and enhances efficiency and transparency in handling lost inventory.

While this is a positive change, it is essential to note that not all situations are covered by proactive reimbursements. Manual claims are still required for certain cases and all removal claims.

Updated Eligibility Windows for Filing Claims

From October 23, 2024, the eligibility windows for filing manual claims are being refined. The new timelines are as follows:

• Fulfillment Center Operations Claims: Must be submitted within 60 days of the item being reported lost or damaged.
• FBA Customer Returns Claims: Can be submitted between 60-120 days after the customer refund or replacement date.
• Removal Claims for Items Lost in Transit: Must be submitted between 15-75 days from the shipment creation date.
• Other Removal Claims: Must be filed within 60 days of the shipment being delivered back to the seller.

Adapting to these new timelines will require sellers to revise their current processes to ensure timely submissions.

Multi-Channel Fulfillment Reimbursement Caps

Effective August 23, 2024, Amazon has introduced reimbursement caps for Multi-Channel Fulfillment (MCF) orders. These caps vary by country and set maximum limits for items lost or damaged during the fulfillment process:

• Australia: $450 AUD
• Canada: $400 CAD
• France, Germany, Italy, Spain: €275 EUR
• Japan: ¥2500 JPY
• Mexico: $5,000 MXN
• UK: £250 GBP

These caps provide predictability but may not fully cover losses for high-value items. Sellers dealing with such items should consider third-party insurance to cover potential losses beyond these caps.

Challenges and Considerations for Sellers

While the new policies aim to simplify processes and reduce manual workload, they also present challenges. 

The shorter eligibility windows require more vigilant inventory management, and the reimbursement caps may necessitate additional insurance for high-value items. 

Sellers must stay informed and adjust their strategies to align with these changes to avoid missed reimbursements and potential financial losses.

Tips for Handling the New Policies

• Stay Updated: Regularly check for updates to Amazon’s reimbursement policy and adjust your processes accordingly.
• Revise Internal Processes: Update your inventory management and claim filing processes to comply with the new timelines.
• Consider Insurance: For high-value items, explore third-party insurance options to cover potential losses beyond Amazon’s reimbursement caps.

How Our Expertise Can Help You

Overcoming the challenges of Amazon’s reimbursement policies demands specialized expertise and extensive experience. 

Our team possesses both, making us the ideal partner for Amazon sellers. We ensure that no potential reimbursement is overlooked by managing the entire process for you. 

From inventory monitoring to timely claim submissions, we handle every step with precision, ensuring you receive the reimbursements you are entitled to.

Inventory Management with Forceget

Forceget provides global supply chain solutions through a digital platform that integrates with Amazon Seller Central. This integration allows sellers to manage their inventory effectively by tracking inventory levels, receiving alerts for decreasing inventory, creating shipments, and getting quotes for warehousing and shipping. 

The platform supports multichannel sales, ensuring that all aspects of the global supply chain are managed digitally and efficiently.

With Forceget, sellers can:

• Track inventory levels in real-time.
• Receive alerts for low inventory to avoid additional fees.
• Create and manage shipments easily.
• Get competitive quotes for warehousing and shipping.
• Handle multichannel sales effortlessly.

By leveraging Forceget’s digital platform, Amazon sellers can streamline their operations, reduce costs, and focus on growing their business.