The Amazon seller reimbursement system compensates sellers for financial losses resulting from various occurrences during the FBA process. The reimbursement policy covers a wide range of events, including damaged or lost inventory, incorrect fees, or technical issues.

What is Amazon FBA Reimbursement? 

Amazon FBA (Fulfillment by Amazon) reimbursement is the compensation for inventory or fee-related issues that may arise in the Amazon FBA program. Amazon fulfillment centers take care of all the necessary steps, from storing to shipping your products. If inventory-related issues occur during the process, Amazon reimburses FBA sellers.

Amazon Refund vs Reimbursement 

Buyers and sellers are affected in different ways when there’s a returned item. Both events occur in the Amazon FBA program. 

Amazon FBA Refund Process

A customer should complete the following steps to receive their money back. 

1. Sign into your Amazon Seller Central account and request a return.
2. Amazon will send a return shipping label to the buyer.
3. The buyer packs the item and completes the shipping labelling before returning the item.
4. Amazon reviews the receipt and starts processing the returned items within 30 days. 
5. Once the processing is complete, Amazon will issue a refund to the buyer. 

Amazon FBA Seller Reimbursement Process

Here’s an overview of the process for an Amazon seller:

1. The seller receives a deduction for the return funds in the subsequent disbursement before Amazon issues a shipping label.
2. The seller receives a deduction for the refund when it is issued to the buyer.
3. Upon arrival at the fulfillment center, Amazon assesses the condition of the returned items.
4. If the returned item is considered sellable, Amazon will replenish its stock.
5. For items deemed unsellable, Amazon investigates whether the seller qualifies for reimbursement.

Amazon refunds for FBA sellers

• Damaged Inventory: If a seller’s inventory incurs damage while in Amazon’s fulfillment network, be it during the fulfillment process, customer returns, or storage, the seller may qualify for reimbursement.  
• Missing Inventory: Should a seller’s inventory be lost either in transit to fulfillment centers, during storage within FBA centers, or in the return process, the seller is entitled to reimbursement.
• Overcharges for Storage Fee: Amazon imposes storage fees depending on the space an inventory occupies within a fulfillment center. Mistakes in storage fees can result from inaccurate measurements, product size classification, or miscalculations. 
• Overcharges for Order and Weight Handling Fees: Amazon incurs costs for the selection and packaging of a seller’s items for shipping, denoted as order and weight handling fees. Inaccurate measurements of a product’s weight and dimensions could result in excess charges.
• Overcharges for Removal and Disposal Fees: Amazon imposes fees for the removal or disposal of inventory. Mistakes may arise if a product is not adequately removed or disposed of, resulting in overcharges.

Before Filing an Amazon Claim

• Units: Ensure that the number of units matches the shipping plans.
• Contents: Review the ‘Contents’ tab in your shipping plan for detailed information regarding any discrepancies.
• Reimbursements: Check the ‘Reimbursements’ reports to see if Amazon has already reimbursed you.

How to file an Amazon Seller Reimbursement Claim

If Amazon hasn’t reimbursed you for the issue, you can file an amazon seller reimbursement claim. To do so, follow these steps:

1. In your Amazon Seller Central account, navigate to the ‘Inventory’ tab and click on shipments. Here you will see your shipping queue.
2. You can review the ‘Units Expected’ column to see if there are any differences. 
3. Under the ‘Contents’ tab, will see any discrepancies if there’s any.
4. If there is a discrepancy, you will have the option to take action.
5. Before submitting the claim, you will be required to submit documentation regarding your shipment. 
6. If Amazon determines that your reimbursement claim is valid, you will be either reimbursed or your lost or damaged items will be replaced with new items. 

Tips for Amazon Seller Reimbursement

Follow these additional Amazon tips for the best practices:

• Utilize seller resources: Amazon provides comprehensive guides and tutorials on the reimbursement process. Familiarize yourself with these resources to navigate the complexities efficiently.
• Seek community support: Online forums and communities of experienced Amazon sellers can offer valuable advice and support throughout the claim process.
• Stay updated: Amazon’s policies and procedures may change periodically. Regularly check for updates and stay informed to ensure your claims are compliant.