Complete Guide to FBA Reimbursements for Beginners

TL;DR

• Amazon reimburses sellers for lost, damaged, or mishandled inventory but not all claims are automatic.

• Key reports like Inventory Adjustment and Refund Reports help track missing reimbursements.

• Sellers must manually file claims via Seller Central with shipment IDs, ASINs, and proof.

• Amazon calculates reimbursements based on market value, not the seller’s retail price.

• Common mistakes include not tracking inventory, incomplete claims, and assuming all refunds are automatic.

• Automated reimbursement services save time by detecting errors and filing claims efficiently.

Selling on Fulfillment by Amazon (FBA) allows sellers to scale their business without worrying about logistics. However, Amazon is not perfect, and inventory can sometimes get lost, damaged, or mishandled in Amazon’s fulfillment centers. This can result in financial losses for sellers.

To protect sellers from such issues, Amazon provides FBA reimbursements, compensating them for inventory errors that occur under Amazon’s control. While some reimbursements are processed automatically, sellers often need to track errors and file claims manually to recover all lost funds.

This guide covers everything beginners need to know about Amazon FBA inventory reimbursement, including how the process works, what qualifies for reimbursement, and how to maximize claims efficiently.

What is FBA reimbursement?

FBA reimbursement refers to the money Amazon repays sellers when their inventory is lost, damaged, or mishandled in fulfillment centers. Since Amazon manages storage, packing, and shipping, they are responsible for compensating sellers when mistakes occur. However, while Amazon does provide some automatic reimbursements, many issues go unnoticed, requiring sellers to track discrepancies and file claims manually.

Reimbursement applies to situations such as lost stock in Amazon’s warehouses, items damaged by Amazon staff, incorrect customer refunds, and overcharged FBA fees. If an item goes missing during warehouse transfers or is mistakenly marked as disposed of, sellers may be eligible for Amazon FBA inventory reimbursement.

Amazon follows specific guidelines to determine whether an item qualifies for reimbursement and how much compensation will be issued. The refund amount is usually based on the product’s recent sales history, average market price, or invoice cost, rather than the seller’s retail price.

Since Amazon does not always detect every error, sellers must monitor their inventory reports, review transactions, and file claims when necessary to recover their lost funds.

What does Amazon reimburse sellers for?

Sellers can file for Amazon FBA inventory reimbursement in cases such as:

• Lost inventory in Amazon warehouses – When stock is misplaced or disappears from Amazon’s fulfillment centers.

• Amazon warehouse damaged reimbursement – If inventory is damaged by Amazon employees or equipment.

• Lost or damaged inventory during transfers – When items are lost while being moved between fulfillment centers.

• Customer return issues – If a returned product never gets added back to inventory.

• Uncredited removal orders – If Amazon does not return inventory to the seller after a removal request.

Amazon’s reimbursement policy covers these errors, but sellers must track their inventory and file claims if reimbursements are not processed automatically.

How to check if you are missing an FBA reimbursement

Amazon does not always notify sellers when a reimbursement is owed. It is up to the seller to track discrepancies and file claims. Here’s how to check if you are missing reimbursements:

1. Review key reports in Amazon Seller Central

Sellers can identify missing reimbursements by reviewing the following reports:

• Inventory Adjustment Report – Tracks inventory lost or damaged inside fulfillment centers.

• Received Inventory Report – Confirms whether Amazon properly recorded inbound shipments.

• Fee Preview Report – Checks if Amazon charged incorrect FBA fees due to miscalculated dimensions.

• Refund Report – Ensures customer refunds were deducted properly from the seller’s account.

2. Compare your shipped inventory with Amazon’s records

If you sent 500 units to Amazon but only 480 are recorded in inventory, you may be eligible for reimbursement for the missing 20 units.

3. Track customer return discrepancies

If a customer returns an item but Amazon does not restock it in your inventory, you can file an FBA reimbursement claim to recover the cost of the missing item.

How to file an FBA reimbursement claim

If Amazon fails to automatically reimburse missing or damaged inventory, sellers must file a manual reimbursement claim through Seller Support.

Step-by-step guide to submitting a claim

1. Log into Amazon Seller Central.

2. Go to the Help section and select Contact Us.

3. Choose Fulfillment by Amazon as the issue category.

4. Select FBA inventory reimbursement as the topic.

5. Provide details such as:

   1. Shipment ID or order number (for lost inventory).

   2. ASIN and SKU (for damaged or missing items).

   3. Screenshots from reports proving the discrepancy.

6. Submit the claim and track the status in the Case Log.

What happens after submitting a claim?

• Amazon reviews the claim and checks warehouse records.

• If the claim is approved, the seller receives reimbursement based on Amazon’s estimated product value.

• If the claim is denied, sellers can resubmit with additional proof.

How Amazon calculates FBA reimbursements

Amazon does not reimburse sellers based on their original sale price. Instead, Amazon calculates reimbursements using:

• The average sale price over 90 days.

• The cost of the item based on purchase invoices.

• Amazon’s estimated fair market value.

This means sellers may not always recover the full retail price of their lost or damaged inventory.

Common mistakes sellers make with FBA reimbursements

Many sellers miss out on reimbursements due to simple mistakes. Here are the most common errors:

1. Not tracking inventory regularly

If sellers don’t check reports, they may not notice lost or damaged inventory until it’s too late to file a claim. Amazon allows claims only within 18 months, so regular tracking is crucial.

2. Submitting incomplete claims

Claims without shipment IDs, product details, or proof of loss often get denied. Providing complete documentation increases the chances of approval.

3. Assuming Amazon handles everything automatically

Many sellers assume Amazon will reimburse them for every mistake, but Amazon’s system does not detect all issues. Manual claim filing is often necessary.

4. Not following up on pending claims

Amazon sometimes delays or ignores claims, so sellers need to follow up regularly to get reimbursements processed.

How to automate the FBA reimbursement process

Tracking inventory errors and filing claims manually is time-consuming. Many sellers use Amazon FBA reimbursement services to automate the process and ensure they recover every dollar owed.

Benefits of using an Amazon reimbursement service

• Automatically detects missing inventory and unprocessed reimbursements.

• Files claims on behalf of the seller with proper documentation.

• Tracks reimbursement status and follows up with Amazon.

• Saves time and increases recovery rate compared to manual tracking.

For example, a seller with 10,000+ monthly orders might lose thousands of dollars in untracked reimbursement opportunities. Using an automated service, they can:

• Scan account history for the past 18 months.

• Identify all lost or damaged inventory that qualifies for reimbursement.

• Submit bulk claims efficiently without manual effort.

This ensures sellers recover the maximum amount possible without spending hours tracking and filing claims.

Final thoughts

FBA reimbursements are an important part of protecting a seller’s profits, but many sellers overlook missing refunds due to a lack of tracking. Amazon FBA inventory reimbursement policies allow sellers to recover money for lost, damaged, and mishandled inventory, but claims must be submitted on time and with proper documentation.

For sellers who find manual claim tracking too time-consuming, Amazon FBA reimbursement services can help automate the process, detect missing refunds, and maximize recovered funds. Staying proactive with inventory management and reimbursement claims ensures sellers don’t lose money due to Amazon’s fulfillment errors.