FBA Reimbursement for Wholesale Traders: Recovering Lost Inventory Costs

TL;DR

• Wholesale traders lose money due to lost, damaged, or mishandled inventory in Amazon warehouses.

• Amazon reimburses lost stock, warehouse damage, incorrect refunds, and uncredited removals.

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

• Filing claims with shipment IDs, ASINs, and proof increases approval chances.

• Reimbursement services automate claim detection, saving time and recovering more funds.

• Hiring a reimbursement specialist ensures maximum refunds for high-volume sellers.

Wholesale traders who sell through Fulfillment by Amazon (FBA) depend on Amazon to store, process, and ship their products. However, inventory losses due to warehouse errors, shipping mishandling, or incorrect fees can lead to significant financial setbacks. While Amazon offers an FBA reimbursement policy, many wholesale traders miss out on reimbursements simply because they don’t track discrepancies or file claims.

Understanding Amazon lost inventory reimbursement is essential for wholesale traders who want to recover lost inventory costs and maximize their profits.

Why wholesale traders need FBA reimbursement

Unlike private label sellers, wholesale traders operate with bulk inventory, often shipping hundreds or thousands of units to Amazon’s fulfillment centers. This increases the chances of:

• Inventory is getting lost or damaged in Amazon warehouses.

• Shipments are being miscounted or misplaced during inbound processing.

• Incorrect storage or fulfillment fees are being charged.

• Customer returns are not being properly restocked or refunded.

Even though Amazon has an automated system for some reimbursements, not all lost inventory cases are detected, meaning wholesale traders must track and file claims manually.

Types of FBA reimbursement available for wholesale traders

Amazon provides FBA reimbursement for various types of inventory losses. Wholesale traders should be aware of these categories to identify opportunities for reimbursement.

1. Amazon lost inventory reimbursement

Amazon may lose inventory when transferring stock between fulfillment centers or during inbound shipments. If inventory is marked as received but doesn’t show up in stock, traders can file a claim.

For example, if a trader sends 500 units to an FBA warehouse but Amazon records only 480, they are eligible for reimbursement for the missing 20 units.

2. Amazon warehouse damage reimbursement

Products can be damaged while stored in Amazon’s warehouse due to mishandling by staff, accidents, or internal transfers. Amazon is responsible for reimbursing the cost of damaged inventory.

For instance, if Amazon damages 10 units of a product, the seller can request a reimbursement equal to the estimated value of those items.

3. Customer return reimbursement errors

Wholesale traders dealing in high-volume sales often experience return-related issues. Some common problems include:

• Returned items are never added back to inventory.

• Amazon is refunding customers but failing to deduct the amount from the seller’s balance.

• Returned items are being damaged, but no reimbursement is provided.

If Amazon is responsible for any of these errors, traders are eligible for Amazon FBA refund reimbursement to recover lost money.

4. Uncredited removals and disposal orders

If a trader requests removal of excess stock, but Amazon fails to return all units, they can claim reimbursement. Similarly, if Amazon agrees to dispose of inventory but doesn’t provide proof, the trader is entitled to compensation.

How to recover lost inventory costs through FBA reimbursement

1. Track inventory discrepancies regularly

Amazon does not always issue reimbursements automatically. Wholesale traders must review their FBA reports in Seller Central to find discrepancies. Key reports include:

• Inventory Adjustment Report – Identifies lost or damaged inventory.

• Received Inventory Report – Confirms if all inbound shipments were counted correctly.

• Refund Reports – Checks if customer refunds were deducted from the seller’s balance.

For example, if a trader sends 1,000 units to Amazon but the Received Inventory Report only shows 980, they need to file a reimbursement claim for the missing 20 units.

2. File claims with Amazon for missing or damaged inventory

Once a discrepancy is identified, traders need to file a claim with Amazon Seller Support. Proper documentation is key to getting claims approved.

A reimbursement request should include:

• Shipment ID for inbound inventory claims.

• Product ASIN/SKU to identify the affected items.

• Date and details of the loss or damage.

• Screenshots or Amazon reports proving the discrepancy.

For instance, if Amazon loses 50 units of a wholesale trader’s best-selling product, providing the shipment ID, purchase invoice, and inventory reports increases the likelihood of successful reimbursement.

3. Use Amazon seller reimbursement services

Manually tracking and filing dozens of claims can be overwhelming, especially for wholesale traders dealing with bulk inventory. Using Amazon seller reimbursement services simplifies the process.

These services:

• Automate claim detection by scanning seller accounts for missing inventory.

• Identify hidden reimbursement opportunities that sellers may overlook.

• Submit claims with the correct documentation to improve approval rates.

For example, a wholesale trader who processes 10,000+ orders per month may find it difficult to track every lost or damaged unit. Using an automated FBA reimbursement service, they can recover thousands of dollars in lost inventory costs without spending hours on manual tracking.

4. Work with an Amazon reimbursement specialist

Hiring an Amazon reimbursement specialist can be beneficial for wholesale traders with high sales volume. These specialists:

• Audit past transactions to find unclaimed reimbursements.

• File claims efficiently while ensuring compliance with Amazon’s policies.

• Negotiate disputes if Amazon initially denies reimbursement requests.

For instance, a wholesale trader who never tracked reimbursement claims for the past year may hire a specialist to recover losses for the last 18 months, leading to significant financial recovery.

Final thoughts

For wholesale traders selling on Amazon FBA, lost inventory costs can add up quickly. Whether it’s missing stock, warehouse damage, or return errors, failing to track reimbursement claims means losing money.

By regularly checking reports, filing claims correctly, and using Amazon seller reimbursement services, traders can recover thousands of dollars that would otherwise be lost. For high-volume sellers, working with an Amazon reimbursement specialist or using automated tools can maximize reimbursements and protect profits.

Staying proactive with FBA reimbursements ensures wholesale traders get compensated for Amazon’s mistakes and keep their business running profitably.