Amazon gets more and more competitive each day, and staying ahead of the competition requires not only strategic investments but also maximizing your returns on every transaction. One often overlooked but highly effective strategy is to file an Amazon reimbursement claim.

Amazon Reimbursement vs Amazon Refunds

If as an FBA seller, you are not aware of how to boost your profits with minimum investment, you can not rise above the competition. Filing an Amazon reimbursement claim is one of the best ways you can see a rise in your profits with minimum effort.

But before diving into how to file these claims, it’s essential to understand the key differences between Amazon reimbursements and refunds.

What Are Amazon Refunds?

Refunds are the amounts returned to buyers when they decide to return merchandise. When a customer initiates a return, they are entitled to receive the full purchase price back through their chosen refund method. 

This process ensures customer satisfaction and maintains trust in the Amazon marketplace. Essentially, refunds are the mechanism through which buyers get their money back after returning an item.

What Are FBA Reimbursements?

On the other hand, reimbursements are compensations that sellers receive from Amazon for various issues, including returned items. Just as buyers must follow a process to return items and receive refunds, sellers must also follow a set procedure to claim reimbursements. 

These reimbursements cover instances such as lost or damaged inventory, incorrect customer refunds, or other discrepancies that result in financial losses for the seller. Filing for reimbursements helps sellers recover costs that might otherwise go unnoticed, thereby protecting their profit margins.

Why the Distinction Matters

Understanding the distinction between Amazon FBA refunds and reimbursements is crucial for effective financial management as an Amazon FBA seller. Refunds impact your sales and revenue calculations, reflecting customer returns directly. 

In contrast, reimbursements are about recouping losses and ensuring that you are compensated for inventory issues or procedural errors. By leveraging reimbursements, you can significantly boost your bottom line with minimal effort.

Requirements for Filing an Amazon Reimbursement Claim

Now that we’ve clarified the differences between Amazon refunds and reimbursements, let’s focus on the process of filing for Amazon FBA reimbursements. As an FBA seller, it’s essential to understand the specific requirements and policies to ensure your claims are processed smoothly.

Eligibility

Before you can file a reimbursement claim, you need to ensure your item meets Amazon’s eligibility criteria. The following points outline the necessary conditions:

• The item must have been registered in Amazon FBA at the time it was lost or damaged.
• It should comply with all FBA product requirements and restrictions.
• The item must adhere to Amazon’s FBA inventory requirements.
• Your shipping plan must accurately state the items and quantities.
• The item should not be pending disposal as requested.
• The item must not be defective.
• The damage to the item should not be customer-caused.
• Your seller account must be in good standing before filing a claim.

Ensuring your items meet these criteria is the first step towards successful reimbursement claims.

 

Policy

Amazon has a detailed reimbursement policy for FBA sellers facing inventory issues. Keep these guidelines in mind when filing a claim:

• Provide additional information such as receipts or invoices when re-evaluating your request.
• If Amazon finds the lost inventory or discovers an erroneous reimbursement, they may replace the item or reverse the credit.
• Prohibited or expired items are not eligible for refunds.
• Claims must include detailed information, such as sales history, ASIN with issues, and Amazon’s average FBA selling price.
• Multiple requests cannot be submitted simultaneously.
• Amazon has the right to dispose of or resell items they have reimbursed you for.

These rules are primarily for lost or damaged inventory. For further clarification, consider consulting a trusted Amazon reimbursement company, such as Refundget.

Different Classes of Reimbursements

Amazon FBA reimbursements can occur at various stages of the fulfillment process. Here are the main types:

Items Lost or Damaged in Amazon Warehouse

Amazon occasionally loses inventory due to misplacement or mistakenly placing it in another seller’s stock. In these cases, Amazon compensates sellers for each lost unit.

Damaged During Shipment to Customers or Return to Warehouse

Amazon employees work quickly to fulfill orders, which can sometimes result in accidental damage to items. If this happens, you are entitled to a reimbursement.

Customer Returned the Item

Several scenarios can occur with customer returns that warrant reimbursement claims:

• The customer received a refund but did not return the item.
• The original item was not returned.
• The returned product was not recorded.
• An incorrect refund amount was issued to the customer.
• The restocking fee was not credited.

Wrong Quantity of Orders

Errors in order processing can lead to customers receiving more items than ordered. In such cases, Amazon typically does not retrieve the extra items, making you eligible for reimbursement.

Overcharging of Amazon Fees

Amazon FBA charges various fees, including storage, fulfillment, and commission fees. Incorrect fee charges can add up over time, and you have the right to claim reimbursements for overcharges.

Understanding these categories and their associated requirements is crucial for ensuring you receive the reimbursements you’re entitled to.

How to File a Reimbursement Claim Step-by-Step:

Step 1: Identify the Issue

Begin by reviewing your inventory records to spot any discrepancies. Make sure you have evidence showing that the inventory was lost or damaged while under Amazon FBA’s care.

 

Step 2: Check for Existing Reimbursements

Before filing a new claim, check the Reimbursement reports in your Seller Central account to see if Amazon has already issued a reimbursement for the issue.

 

Step 3: Locate Shipments

Navigate to the ‘Shipments’ section under the ‘Inventory’ tab in your seller account. This section contains information about all your past shipments.

 

Step 4: Review Units Expected

In the ‘Shipments’ section, check the ‘Units Expected (units located)’ column in your shipping queue. If there’s a discrepancy between the number of units sent and the number received by Amazon, there may be an issue with the shipment.

 

Step 5: Initiate Research

Start the ‘research missing units’ process for Amazon to locate your missing inventory. If Amazon cannot find the missing units, you become eligible for reimbursement.

 

Step 6: Provide Documentation

Contact Seller Support to file a claim for damaged or missing units. Be ready to provide all necessary documentation and evidence to support your reimbursement claim.

 

Step 7: Submit Your Claim

Follow Amazon’s specific instructions for submitting your claim. This may involve filling out forms, providing documentation, and explaining the reason for your claim.

 

Step 8: Review the Claim

After submitting your claim, Amazon will review the provided information, documentation, and evidence to verify its validity.

 

Step 9: Receive Reimbursement or Replacement

If Amazon approves your claim, your lost or damaged inventory will either be replaced by the Fulfillment Network Stock Keeping Unit (FNSKU) or you’ll be reimbursed for the same value.

Final Notes

Amazon reimbursement policies may change over time. Sometimes, you may also miss the requirements to submit a claim. 

The best way to handle Amazon FBA reimbursement claims is to partner with Refundget, the Amazon reimbursement experts. From auditing your FBA account to preparing and filing the necessary documentation to monitoring the process, we handle it all for you.