How much money Amazon sellers are leaving on the table?

TL;DR:

• Amazon sellers often have unclaimed reimbursements from FBA errors.

• Reimbursements cover lost inventory, incorrect fees, and more.

• Manual checks in Seller Central identify potential claims but are time-consuming.

• Refunzo simplifies reimbursement by tracking all claims in real-time.

• Sellers can DIY or let Refunzo experts handle claims for a fee only if refunded.

If you’ve been selling on Amazon, using FBA, and your business has been running smoothly for a while now, there’s a good chance Amazon owes you money—and you might not even know it.

It’s true. In this post, we’ll look at where this hidden cash is coming from, why it’s often overlooked, and, most importantly, how you can claim what’s rightfully yours.

Quick guide:

• How do Amazon FBA reimbursements work?

• What types of FBA errors qualify for reimbursements?

• How much money can sellers realistically recover through reimbursements?

• How can I check if Amazon owes me money?

• What’s the process for filing FBA reimbursement claims?

• How far back can I claim unprocessed FBA reimbursements?

• Are there tools or services that simplify the reimbursement process?

How do Amazon FBA reimbursements work?

Amazon is a giant marketplace with millions of orders, shipments, and inventory moves happening every day. And as big as it is, Amazon doesn’t always run flawlessly. Mistakes happen—inventory gets lost, damaged, mislabeled, or even overcharged in fees. And if you’re not keeping an eye on it, you might end up paying for Amazon’s slip-ups.

Reimbursements are Amazon’s way of giving sellers their money back when errors happen in the FBA (Fulfillment by Amazon) process. Essentially, if Amazon makes a mistake with your stock, fees, or deliveries, you’re eligible to claim that lost money.

Here’s how the Amazon FBA refund reimbursement process works:

• Identify the errors: Sellers need to spot the issues first. This could be anything from lost or damaged inventory to overcharges on storage fees or returns not properly credited.

• File a claim with Amazon: Once you’ve identified an error, you submit a claim through Seller Central. This involves detailing the issue, providing order or inventory information, and explaining why you believe a reimbursement is owed.

• Wait for Amazon’s review: Amazon reviews each claim, checking if it matches their reimbursement criteria. If approved, they’ll issue a credit to your seller account.

• Receive your reimbursement: Once Amazon processes the claim, the money is added to your account balance, and it’s yours to keep.

Amazon won’t automatically reimburse every error, so sellers need to stay on top of their data. If you don’t monitor and file claims, you could end up leaving that money on the table.

What types of FBA errors qualify for reimbursements?

• Lost inventory: Inventory that goes missing within Amazon’s fulfillment centers.

• Damaged inventory: Items damaged in Amazon’s warehouses or during the fulfillment process.

• Destroyed inventory without permission: Inventory Amazon destroys without the seller’s authorization.

• Customer return issues: Items returned by customers but not added back to your inventory.

• Overcharged FBA fees: Incorrectly calculated fulfillment, storage, or referral fees.

• Incorrect weight or size fees: Items charged incorrectly due to wrong size or weight classification.

• Lost inbound shipments: Inventory that is lost during the inbound shipment process to Amazon’s warehouse.

• Lost or damaged customer returns: Returned items that are lost or damaged and not reimbursed to the seller.

• Replacements without returns: Amazon issues a replacement to a customer but doesn’t receive the original item back.

• Refunds without returns: Customers receive a refund without returning the product, and Amazon doesn’t credit the seller.

• Inventory discrepancies during transfers: Inventory that’s lost or miscounted while being transferred between Amazon’s fulfillment centers.

• Incorrect disposal: Amazon disposes of inventory that was not marked for removal or disposal by the seller.

• Shipment errors in receiving: Errors in receiving shipment quantities (e.g., Amazon counts less than what was shipped).

How much money can sellers realistically recover through reimbursements?

Amazon sellers can recover a significant portion of their revenue through reimbursements for issues like lost or damaged inventory, incorrect fees, and mishandled returns. While exact figures vary based on individual circumstances, some estimates suggest that sellers might be missing out on approximately 3% of their revenue due to such discrepancies. 

For instance, if a seller generates $100,000 in annual sales, they could potentially recover around $3,000 through diligent reimbursement claims. This amount can vary depending on factors like the volume of transactions, the types of products sold, and the efficiency of inventory management.

To maximize reimbursement recovery, sellers should regularly audit their accounts for discrepancies. Utilizing specialized tools and services can streamline this process, helping to identify and claim reimbursements more effectively. 

While the exact amount recoverable through reimbursements depends on various factors, proactive management and regular audits can lead to substantial financial recovery for Amazon sellers.

How can I check if Amazon owes me money?

There are two ways:

1. The traditional, manual way

Amazon provides tools in Seller Central that allow you to check for unclaimed reimbursements, but it’s a detailed process that requires some manual digging. Here’s how to do it:

• Log in to your Amazon Seller Central account.

• Navigate to Reports > Fulfillment.

• Under Fulfillment, go to Inventory Adjustments. Here you’ll find records of inventory that’s lost, damaged, or otherwise adjusted.

• Look for discrepancies in inventory quantities—anything listed as “lost” or “damaged” but not reimbursed. Amazon’s system isn’t always set to automatically flag reimbursements, so these adjustments can indicate errors that are potentially reimbursable.

• Check the “Payments” section in your Seller Central dashboard. Under Transaction View and Fee Preview, review fees are charged for each transaction and inventory transfer.

• Manually cross-reference all of this data with your internal records to spot missing inventory, incorrect fees, or any transactions that seem off. If you spot any errors, you can file a claim by submitting a case to Amazon support in the Help section.

This process is time-consuming and can be complicated, especially if you’re working with a large volume of inventory. Manual checks require careful attention to detail and regular audits to stay on top of potential reimbursements.

2. Using Refunzo

• If the manual process sounds overwhelming, Refunzo simplifies it. Refunzo is a specialized tool that helps Amazon sellers identify and claim reimbursements that they might otherwise miss. Here’s how it works with Refunzo:

• Sign up with Refunzo and securely connect your Amazon Seller Central account. Refunzo will automatically access your inventory data and transaction records within Amazon’s limits.

• Refunzo then scans your account history for any unclaimed reimbursements across various categories, such as lost or damaged inventory, incorrect fees, and customer returns not credited back.

• Once the audit is complete, Refunzo will provide you with a detailed report of all potential reimbursement claims, highlighting discrepancies and giving you a clear view of what Amazon may owe you.

• Submit claims with a few clicks. Refunzo allows you to submit claims directly from its dashboard without needing to go through Amazon’s manual claim-filing process. This automation speeds up the entire process and increases your chances of receiving the reimbursements.

Using Refunzo can save time, reduce human error, and increase the likelihood of recovering funds owed to you. It’s particularly helpful if you’re managing high volumes of inventory or if you’re unsure where to start with Amazon’s own reporting tools.

With either method, you can ensure you’re not leaving any money on the table—but Refunzo offers a faster, streamlined approach that takes the heavy lifting off your plate.

What’s the process for filing FBA reimbursement claims?

Step 1: Identify eligible issues

Regularly monitor your Seller Central reports to spot discrepancies. 

Step 2: Gather necessary documentation

Collect all relevant evidence to support your claim:

• Shipment records: Proof of delivery and contents.

• Inventory reports: Records showing discrepancies.

• Communication logs: Any correspondence with Amazon regarding the issue.

Step 3: File a claim via Seller Central

Follow these steps to submit your claim:

• Log in to Seller Central: Access your account at sellercentral.amazon.com.

• Navigate to 'Help': Click on the 'Help' link in the top-right corner.

• Contact support: Scroll down and select 'Get support' or 'Contact us.'

• Choose issue type: Select the appropriate category, such as 'Fulfillment by Amazon' > 'FBA Inventory Reimbursement.'

• Provide details: Fill in the required information, including order IDs, ASINs, and a detailed description of the issue.

• Attach documentation: Upload the gathered evidence to support your claim.

• Submit the case: Review all information and submit the claim.

Step 4: Await Amazon's response

After submission:

• Review period: Amazon typically reviews claims within 7-10 business days.

• Follow-up: Monitor your case log in Seller Central for updates. If additional information is requested, provide it promptly.

Step 5: Receive reimbursement

If approved:

• Account credit: The reimbursed amount will be credited to your seller account balance.

• Notification: You'll receive a confirmation email detailing the reimbursement.

How far back can I claim unprocessed FBA reimbursements?

As of October 23, 2024, Amazon has updated its reimbursement policies, significantly reducing the timeframes for sellers to file claims for unprocessed FBA reimbursements. The new eligibility windows are as follows:

• Fulfillment center operations claims: Claims for items lost or damaged within Amazon's fulfillment centers must be submitted no later than 60 days after the item was reported lost or damaged.

• FBA customer returns claims: These claims can be submitted between 60 to 120 days after the customer refund or replacement date. It's important to wait at least 60 days to ensure the customer has time to return the item for processing.

• Removal claims for items lost in transit: Claims for items lost during the removal process can be submitted between 15 to 75 days from the shipment creation date. Waiting at least 15 days allows sufficient time for the shipment to be delivered back to you.

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

These changes represent a significant reduction from the previous 18-month window, emphasizing the need for sellers to promptly monitor their inventory and file claims within these new, shorter timeframes.

Are there tools or services that simplify the reimbursement process?

The process of claiming FBA reimbursements can be complicated and time-consuming. Many Amazon sellers don’t have the hours to sift through transaction records, inventory reports, and identify where reimbursements might be due. Luckily, there are many specialized tools and services available. These are designed to make the reimbursement process much simpler and more efficient.

One such tool is Refunzo, which gives Amazon sellers a real-time view of any unclaimed reimbursements Amazon might owe. Instead of manually digging through reports and calculating discrepancies, Refunzo provides a real-time view of exactly how much Amazon potentially owes you. This means you always have a clear picture of where your funds are and what can be reclaimed.

How Refunzo work?

With Refunzo, sign-up is free for life, with no credit card needed to get started. Once you’re registered, Refunzo analyzes your account to detect any unclaimed reimbursements and provides you with an up-to-date amount Amazon may owe you.

Refunzo offers two options for handling reimbursements:

• DIY: This option is for those who prefer to be hands-on. Refunzo’s platform will show you all potential reimbursement claims and guide you through each step of the claim filing process. This way, you stay in full control but save time with Refunzo’s data insights and tracking.

• Hire Refunzo’s Amazon reimbursement specialist: For sellers who would rather hand off the process, Refunzo’s team of reimbursement specialists can handle everything from identifying claims to filing and following up on your behalf. This service follows a pay-only-if-refunded model—you only pay a small percentage of the recovered amount if the claim is successful. It’s truly a win-win setup, as you have nothing to lose and gain only if the experts recover funds.

Whether you’re looking to save time with a DIY approach or let experts take over, Refunzo offers an easy, efficient way to stay on top of your reimbursements and avoid leaving money on the table.