In the competitive world of Amazon selling, ensuring every dollar counts is crucial for maintaining profitability. Many sellers using Fulfillment by Amazon (FBA) are unaware that they could be losing substantial profits due to unclaimed reimbursements. Conducting an FBA reimbursement audit is essential as it helps identify discrepancies in inventory, fees, and customer returns that Amazon should reimburse. 

By regularly auditing your FBA transactions, you can reclaim lost funds, improve your bottom line, and ensure your business operates smoothly.

What are Amazon FBA Reimbursements?

Amazon FBA reimbursements are compensations issued by Amazon to sellers for various discrepancies that occur within the FBA system. These include unaccounted or damaged inventory, incorrect fees, and mishandled customer returns. 

Essentially, FBA reimbursements help correct errors and ensure sellers are not financially disadvantaged due to mistakes made by Amazon’s fulfillment centers.

What is the Amazon Reimbursement Policy in 2024?

The Amazon Reimbursement Policy outlines the scenarios in which Amazon will reimburse sellers for losses incurred within the FBA program. In 2024, the policy continues to cover a wide range of issues, such as:

• Unaccounted or damaged inventory
• Fee discrepancies
• Mishandled customer returns

The policy also defines the eligibility criteria for reimbursements and the process for filing claims. 

What’s an FBA Audit?

An FBA audit involves a thorough review of your Amazon FBA transactions to identify discrepancies that may qualify for reimbursements. This process includes examining inventory levels, fees charged, and the handling of customer returns. Regular audits help ensure that your records match Amazon’s and that you receive all reimbursements you’re entitled to.

What are the Different Types of Amazon Audits?

Amazon audits can be categorized into several types based on the nature of discrepancies:

• Inventory Audits: Check for lost, damaged, or unaccounted inventory.

• Fee Audits: Verify if you have been overcharged for storage, shipping, or other services.

• Return Audits: Ensure that customer returns are processed correctly and that you are reimbursed for any damaged or lost items.

• Inbound Shipment Audits: Verify that the inventory you send to Amazon matches what is recorded in their system.

What are the Reasons Amazon Might Owe an FBA Seller a Refund?

There are multiple reasons why Amazon might owe an FBA seller a refund, including:

• Lost Inventory: Items that go missing in Amazon’s fulfillment centers.
• Damaged Inventory: Products damaged while under Amazon’s control.
• Overcharged Fees: Errors in storage, shipping, or handling fees.
• Incorrect Refunds: Mistakes in processing customer returns and refunds.
• Inbound Shipment Discrepancies: Differences between shipped and received quantities.

Steps to Perform an FBA Audit

Download and Review Reports:

Start by downloading relevant reports from Amazon Seller Central. Key reports include the Inventory Adjustment Report, Reimbursement Report, and Fee Preview Report.

These reports provide detailed information on inventory changes, reimbursements issued, and fees charged.

Analyze Data:

Use tools or software to help analyze the data from the reports. Look for patterns and discrepancies that may indicate missing inventory, overcharged fees, or incorrect refunds.

Create a systematic approach to cross-reference data across different reports to ensure accuracy.

File Reimbursement Claims:

Once discrepancies are identified, file claims through Amazon Seller Central. Provide detailed documentation and evidence to support your claim.

Keep track of your claims and follow up regularly to ensure they are processed in a timely manner.

Regular Audits:

Conduct regular audits, ideally on a monthly or quarterly basis, to ensure ongoing accuracy and to catch discrepancies early.

Regular audits help maintain financial health and prevent long-term losses due to unclaimed reimbursements.

How to Read The Amazon Inventory Report

Understanding your Amazon Inventory Report is crucial for conducting an effective FBA audit. This report provides detailed information about your product listings and inventory levels. Key sections of the report include:

• Active Listings: Lists all active product listings, including those with no inventory in stock.
• Product Details: Contains essential information such as item name, description, ASIN, and other identifiers.
• Inventory Levels: Shows the number of units available for each product.
• Pricing and Fulfillment: Displays the current selling price and fulfillment channel (FBA or Merchant Fulfilled).

Regularly reviewing and reconciling this report with your records helps identify discrepancies and potential reimbursement opportunities.

Who is Eligible for an FBA Reimbursement or Refund?

To be eligible for an FBA reimbursement or refund, sellers must meet certain criteria outlined in Amazon’s reimbursement policy. Generally, eligibility includes:

• Unaccounted or Damaged Inventory: Items that are lost or damaged while in Amazon’s fulfillment centers.
• Fee Overcharges: Overcharged storage, shipping, or handling fees.
• Customer Return Issues: Incorrect processing of customer returns resulting in financial loss.

Claims must be filed within specific timeframes, usually 18 months for inventory discrepancies and 90 days for fee overcharges. Ensuring you meet these criteria and deadlines is essential for successful reimbursement claims.