Understanding Amazon reimbursement policies is essential for sellers who use Fulfillment by Amazon (FBA). These policies outline when and how you can recover funds for lost, damaged, or mismanaged inventory. Knowing the details helps ensure you don’t miss out on reimbursements owed to you. Here are the key Amazon reimbursement policies you need to know:
Lost inventory reimbursement
Amazon may lose inventory while transferring it between warehouses or during fulfillment. In such cases, you can file a claim for reimbursement. Amazon typically reimburses the item’s fair market value based on its sales history. Keep track of discrepancies in the Inventory Adjustment Report to identify lost inventory.
Damaged inventory reimbursement
If inventory is damaged while in Amazon’s care, you may be eligible for a refund. This includes damages caused during warehouse handling or shipping. Reimbursements for FBA customer damaged reimbursement cases apply if a customer returns an item in a damaged or unsellable condition, and it cannot be resold.
Customer return reimbursement
When a customer receives a refund but doesn’t return the item, Amazon’s FBA refund reimbursement policy covers the loss. Sellers should monitor the Returns Report to identify unreturned items. If the item is not returned within 45 days, you can file a claim for reimbursement.
Overcharged fees reimbursement
Amazon may overcharge for FBA fees due to incorrect product dimensions or weight. Regularly review the Fee Preview Report to ensure the fees align with your product specifications. If you find discrepancies, you can request a refund.
Expired or disposed inventory
If Amazon disposes of or destroys inventory that has expired or was unsellable, you might qualify for reimbursement. This applies if the disposal was not authorized or if you weren’t informed.
Reimbursement time limits
- Each type of claim has a specific time frame for filing. For example:
- Lost or damaged inventory: Up to 18 months.
- Customer returns: 45 days after the refund.
- Overcharged fees: Varies depending on the issue.
- Make sure to file claims promptly to stay within these limits.
How reimbursements are calculated
Amazon reimburses based on the product’s average selling price over a set period. They do not cover the retail price but aim to compensate for the fair market value of the lost or damaged item.
Documentation is key
- To file a claim, you’ll need to provide evidence such as:
- Shipment tracking numbers.
- Proof of delivery.
- Screenshots from your reports showing the discrepancy.
- Amazon requires clear documentation to process your claim successfully.
Final thoughts
Understanding Amazon’s reimbursement policies, such as those for Amazon FBA refund reimbursement and FBA customer damaged reimbursement, ensures you recover funds owed to you. Regularly audit your inventory and transaction reports to spot errors early. Staying proactive helps minimize losses and keeps your FBA operations efficient.
