Amazon’s 2024 Fba Reimbursement Policy Updates – Why Every Seller Needs To Act Fast!

TL;DR

• Amazon now proactively reimburses lost FBA items—saving sellers from manual claims for most issues.

• Removal claims and some manual claims still need seller action, especially for damaged or lost transit goods.

• New rules shorten the claims window from 18 months to 60 days, pushing sellers to act faster than before.

• Stay on top of claims and track inventory closely, or you might miss reimbursement opportunities.

• These updates help sellers, but manual claims are still necessary for specific situations.

Are you an FBA seller?

Then there’s something you need to know.

If you have been selling for a while, if you have seen the ups and downs, if you have been frustrated with Amazon wrongly suspending your product, if you have dealt with unexplained delays, lost shipments, or miscalculated fees, you might know the process called FBA reimbursement.

For those who don’t know, Amazon FBA reimbursement is the process of claiming your money back for the mistakes that have been made by Amazon. As you know, humans are working in the FBA warehouses, and where there are humans, there are errors.

And when the operation is as giant as FBA, the errors are more frequent than you think. Inventory gets lost. Or damaged. Inventory is not returned by customers, or Amazon wrongly charges you with extra fees. These are just a few examples, we’re just scratching the surface—there’s a long list of mistakes that can happen.

And when those mistakes happen, it is not your fault. It is not your fault and you should not pay for it. Hence, you have the right to get Amazon to pay you the reimbursements.

Now that we’re all on the same page, it’s time to address the elephant in the room.

If there’s a procedure to get reimbursement, there is a policy made by Amazon. I mean, did you expect Amazon to make no rules about something?

There are, and it’s a long list.

And Amazon has recently updated the list.

And we’re going to look into it. In detail. It depends on how you look at it. For many sellers, the automatic reimbursements for lost or damaged items will feel like a long-overdue improvement. No more manually digging through reports or spending hours on claims. That’s a big relief.

But there’s a catch.

While Amazon promises to proactively reimburse for most cases, they’ve kept some loopholes open. Sellers still need to file manual claims for removal losses and other issues that don’t get covered automatically.

And it gets trickier.

The real challenge? The shortened time windows for filing claims. What used to be a more generous claims window is now squeezed down to 60 days in most cases.

If you don’t catch those discrepancies quickly, you’ll miss out on Amazon FBA refund reimbursement entirely.

For sellers who manage hundreds or thousands of SKUs, that means keeping an even closer eye on inventory, returns, and shipments — something that can quickly turn into a headache.

So, is it good news? Yes, if you like automation and streamlining. But there’s still work to do, and it won’t be as easy as it first sounds.

Let’s get into it, shall we?

Quick guide

• What’s the update?

• Okay…so what does it mean for Amazon sellers?

• Are these policy changes good news or bad news for Amazon sellers?

• What do Amazon sellers have to say about these updates?

• Why is Amazon reducing the eligibility window from 18 months to 60 days?

What’s the update?

A couple of months ago, Amazon shared this update on their Seller News page:

Starting November 1, 2024, we’ll proactively reimburse you for Fulfillment by Amazon (FBA) items that are lost in our fulfillment centers. We’ll issue the reimbursement as soon as an item is reported as lost by the fulfillment center, which you can track in the Reimbursements report on Seller Central. This more seamless experience saves you time and money by minimizing the need to manually research and file claims for lost items.

Almost all reimbursement claims related to warehouse lost and damaged and customer returns cases will now be proactively reimbursed. However, if you do not receive an automatic reimbursement and you believe that your inventory has been lost or damaged, you will need to file a manual claim. Additionally, all removal claims will still need to be filed manually.

Also starting October 23, we are updating our eligibility window policy. All manual claims must now be submitted within the following timelines:

• A fulfillment center operations claim for an item that is lost or damaged in the fulfillment center must be submitted no later than 60 days after the item was reported lost or damaged.

• An FBA customer returns claim can be submitted between 60-120 days after the customer's refund or replacement date. Claims must not be submitted before 60 days to ensure the customer has time to return the item to us for processing.

• A removal claim for items lost in transit can be submitted 15-75 days from the shipment-creation date. Claims must not be submitted before 15 days to ensure the shipment can be delivered back to you.

• All other removal claims must be filed within 60 days of the shipment being delivered back to you.

We understand that you may need to make changes to your current processes to ensure that all claims are submitted within these new eligibility windows. To ensure you have adequate time to adjust, the new policy will go into effect on October 23.

The FBA inventory reimbursement policy will be updated once the policy goes into effect on October 23.

Okay…so what does it mean for Amazon sellers?

1) Amazon will proactively reimburse sellers

FINALLY. The amount of expectations Amazon has for sellers: reply to buyer messages within 24 hours, keep your order cancellation rate under 2.5%, and maintain your IPI score between 400-800.

But what about our expectations from Amazon?

Shouldn't sellers, who PAY to store their inventory, at least expect Amazon to inform us if their inventory is lost or damaged? Maybe even say, "We're sorry, here’s your reimbursement"?

NOPE. Instead, they make us dig through reports and track down errors for which we can be reimbursed—until we’re ready to PULL OUR HAIR OUT.

But it seems like Amazon is finally starting to listen to our pleas.

Starting November 1, 2024, they’re going to proactively reimburse sellers for FBA items that are lost in their fulfillment centers.

You’re a few years late, Amazon, but we’ll take it!

Amazon will issue reimbursements as soon as an item is reported lost by the fulfillment center, and sellers can track these reimbursements in the Reimbursements report on Seller Central.

Amazon claims that almost all cases related to lost or damaged warehouse inventory and customer returns will be reimbursed automatically.

However, Amazon has left itself an escape hatch. If sellers don’t receive an automatic reimbursement, it’s still up to us to file manual claims.

2) All removal claims still need to be filed manually

What are removal claims, and why are they manual?

Removal claims are when you request to have your unsold inventory removed from Amazon’s fulfillment centers—either to return it to you or dispose of it.

Here’s the thing: Amazon doesn’t automatically track lost or damaged inventory during removal shipments, and that's why you need to manually file claims.

If something goes wrong during transit, like items getting lost or damaged, it’s on you to report the issue and request reimbursement. No automation here—so keep an eye on your removals!

3) Starting October 23, Amazon is updating the eligibility window policy

Manual claims for reimbursement opportunities—like customer returns or damaged inventory—must now be submitted within the updated, shorter time windows.

The window used to be longer, but now Amazon’s tightened it up, so you have to act faster.

1) Fulfillment center operations claim

If your item is lost or damaged inside Amazon’s fulfillment center, you need to file a claim no later than 60 days after it’s reported lost or damaged. So, if Amazon marks your inventory as lost on October 1, you have until November 30 to file a claim. Miss that, and you lose the chance to be reimbursed.

2) FBA customer returns claim

When a customer returns an item, you must wait at least 60 days before filing a claim—this gives Amazon time to process the return. But don’t wait too long! You can only submit your claim between 60 and 120 days after the customer's refund or replacement.

For example, if a customer returned your item on October 1, your window to file a claim is between December 1 and January 30.

3) Removal claim for lost items in transit

If your inventory gets lost while being shipped back to you during a removal order, you have 15-75 days from the shipment creation date to file a claim.

Don’t submit it before 15 days, as Amazon gives time for delivery. So, if the removal order is created on October 1, you can file a claim anytime from October 16 to December 15.

4) Other removal claims

For other removal issues, like damaged goods once delivered back to you, claims need to be filed within 60 days of receiving your shipment.

If you get your returned inventory on October 1, you’ve got until November 30 to file your claim.

Stay on top of these new timelines, or you could miss out on reimbursement!

Are these policy changes good news or bad news for Amazon sellers?

It depends on how you look at it.

For many sellers, the automatic reimbursements for lost or damaged items will feel like a long-overdue improvement.

No more manually digging through reports or spending hours on claims. That’s a big relief.

But there’s a catch.

While Amazon promises to proactively reimburse for most cases, they’ve kept some loopholes open.

Sellers still need to file manual claims for removal losses and other issues that don’t get covered automatically.

And it gets trickier.

The real challenge? The shortened time windows for filing claims. What used to be a more generous claims window is now squeezed down to 60 days in most cases.

If you don’t catch those discrepancies quickly, you’ll miss out on reimbursements entirely. For sellers who manage hundreds or thousands of SKUs, that means keeping an even closer eye on inventory, returns, and shipments — something that can quickly turn into a headache.

So, is it good news? Yes, if you like automation and streamlining. But there’s still work to do, and it won’t be as easy as it first sounds.

What do Amazon sellers have to say about these updates?

Amazon sellers have been vocal about the recent FBA reimbursement policy updates, and their reactions range from skepticism to outright frustration.

Many sellers have expressed their concerns.

Some say that while the new system promises proactive reimbursement, there are still a lot of manual processes and limitations in place that don’t address key issues sellers face.

1) Confusion over terminology and scope

“Is lost in transit the same thing as lost in inbound? Are we referring to the items lost on their way to Amazon's warehouses?"

Some sellers, like PANDACO1, are asking for clarification on terms like “lost in transit” versus “lost in inbound.”

They are unsure if this refers to items lost while being shipped to Amazon's warehouses, revealing some uncertainty around the policy’s scope.

2) Frustration over incomplete coverage

Others, such as PKFash, are concerned about whether the new rules will cover common reimbursement issues like damaged customer returns and product switches.

The lack of clarity on these points is making sellers uneasy.

"So will or won't customer return damages and switches be included in this or not?"

3) Skepticism about Amazon's accountability

Brigitte expressed deep concern over how Amazon handles certain common issues like “empty boxes,” where sellers are charged but not reimbursed for lost items that never arrived at Amazon warehouses.

She feels Amazon’s internal controls are inadequate, and this change won’t solve the root problems.

“Amazon would better intensify their internal controls. There are whole pallets of olive oil disappearing. WHO is stealing these goods?"

4) Doubt about the impact of third-party services

Some sellers, like TMTMT, are questioning whether this new policy will make third-party services like Getida obsolete for filing claims on their behalf.

They see the update as a mixed bag, with some potential benefits but unclear outcomes.

"Does this mean that we no longer need to pay services like Getida to file claims?"

5) General skepticism and frustration

Sellers like CBP_Evolve see the new changes as just another move by Amazon to control the seller experience without addressing deeper warehouse inefficiencies, such as lost units or stolen goods.

"Your FBA warehouses are constantly 'losing' or 'stealing' sellers’ units… But you don’t fix your mishaps."

6) Increased vigilance required

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FBA_M_710 takes a historical perspective, pointing out how the claims window has continuously shrunk from 18 months to just 60 days.

This means that while Amazon is automating certain processes, sellers will need to be even more vigilant to ensure they don’t miss out on filing claims.

“The shortened 60-day window to file lost claims means that sellers need to be even more vigilant so they don't miss that window.”

Overall, sellers are cautious about the update, feeling that while it promises more automation, it still leaves them with many manual claims and doesn’t address underlying issues.

Why is Amazon reducing the eligibility window from 18 months to 60 days?

Amazon’s decision to reduce the eligibility window for filing FBA reimbursement claims from 18 months to 60 days is a significant shift.

But why the sudden urgency?

Increased efficiency, faster resolution

By tightening the claim window, Amazon is likely aiming to streamline operations and resolve issues faster.

The longer sellers wait to file claims, the harder it becomes for Amazon to track, verify, and reimburse accurately.

A shorter window forces both sellers and Amazon to act quickly.

Minimizing fraudulent claims

Let’s face it—fraud can happen.

By limiting sellers' time to file claims, Amazon mitigates the risk of fraudulent claims.

The longer the window, the more opportunities there are for "creative" claim filing or abuses of the system.

A shorter claim period means fewer opportunities for exploitation.

Accountability and inventory accuracy

By reducing the claim window, Amazon signals that it expects sellers to stay on top of their inventory.

The new policy may push sellers to closely monitor stock levels and lost or damaged items—so Amazon isn’t left holding the bag for errors long after the fact.

Ultimately, this move forces everyone—Amazon and sellers alike—to keep a closer eye on inventory and transactions in real-time.

Why wait? The clock is ticking—claim your FBA reimbursements before it's too late!