What is FBA Inventory Reimbursement and Why Does it Matter For your Profits?

TL;DR

• Amazon reimburses lost, damaged, or mishandled inventory, but many refunds require manual claims.

• Tracking inventory errors prevents hidden losses that can add up over time.

• Sellers can file claims for lost stock, damaged goods, incorrect returns, and overcharged FBA fees.

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

• Manual claims are filed via Seller Central, but automation tools streamline the process.

• Using reimbursement services helps sellers recover funds efficiently and maximize profits.

Selling through Fulfillment by Amazon (FBA) makes running an e-commerce business easier, but it also comes with risks. Amazon stores, packs, and ships your inventory, but mistakes happen—items can get lost, damaged, or mishandled in their fulfillment centers. These errors can result in financial losses if sellers don’t take action to recover their money.

This is where FBA inventory reimbursement comes in. Amazon has a policy that allows sellers to claim compensation for lost or damaged inventory, ensuring they don’t lose money due to Amazon’s errors. However, while some reimbursements are processed automatically, many go unnoticed, and sellers must track their inventory and file claims manually to recover their losses.

Understanding Amazon inventory reimbursement is essential for protecting your profits and ensuring you don’t leave money on the table.

What is FBA inventory reimbursement?

FBA inventory reimbursement is the process of recovering money for inventory that is lost, damaged, or mishandled in Amazon’s fulfillment network. Amazon is responsible for inventory while it is in their warehouses or during internal transfers, and if they make a mistake, they are required to compensate the seller.

Sellers can request Amazon lost inventory reimbursement in cases such as:

• Lost inventory in fulfillment centers – Items that disappear from Amazon’s records without explanation.

• Warehouse-damaged inventory – Products damaged by Amazon’s staff or equipment.

• Mishandled customer returns – When returned items are not restocked properly.

• Lost items during warehouse transfers – Inventory that goes missing when Amazon moves stock between fulfillment centers.

• Incorrect removals and disposals – When Amazon fails to return stock after a removal request.

While Amazon does issue some automatic reimbursements, sellers must track inventory discrepancies and file claims when errors are not refunded properly.

Why does Amazon inventory reimbursement matter for your profits?

Many sellers don’t realize how much money they lose each year due to unclaimed reimbursements. Here’s why staying on top of FBA inventory reimbursements is crucial for maintaining healthy profit margins:

1. Prevents hidden financial losses

Amazon’s fulfillment system isn’t perfect, and missing inventory adds up over time. A seller who loses just 2% of their inventory per month to warehouse errors could be losing thousands of dollars annually without realizing it.

For example, if a seller sends 5,000 units per year to Amazon and 100 units go missing, that’s a significant financial loss if they don’t claim reimbursement.

2. Ensures fair compensation for lost inventory

Without proper tracking, Amazon may fail to issue refunds for missing or damaged inventory. Sellers who don’t monitor their reports or file claims manually may miss out on money that rightfully belongs to them.

By using Amazon seller reimbursement services, sellers can identify unprocessed refunds and recover losses automatically, ensuring they get every dollar they’re owed.

3. Protects against overcharges and incorrect returns

Amazon may charge incorrect FBA fees based on miscalculated product dimensions or weight, leading to higher storage and fulfillment costs. Customer returns can also cause financial losses if products are not restocked or refunded correctly.

Tracking inventory and filing reimbursement claims helps sellers avoid paying extra fees or losing money on mishandled returns.

4. Maximizes profit margins

Every lost unit is a direct hit to profitability. By ensuring all eligible reimbursements are claimed, sellers can increase their overall revenue without additional sales.

For example, a seller with $10,000 in annual inventory losses who successfully recovers 90% of reimbursements adds an extra $9,000 back into their profits—without selling more products.

How to claim Amazon lost inventory reimbursement

To maximize reimbursements, sellers must track inventory, identify discrepancies, and file claims manually or use Amazon seller reimbursement services for automation.

1. Check Amazon reports for missing inventory

Sellers should regularly review Amazon Seller Central reports to find errors. The most important reports include:

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

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

• Refund Report – Ensures Amazon deducted customer refunds correctly.

2. Submit a reimbursement claim manually

If Amazon does not automatically issue a refund, sellers can file a claim through Seller Support by:

• Logging into Amazon Seller Central.

• Going to the Help section and selecting Contact Us.

• Choosing Fulfillment by Amazon (FBA) as the issue category.

Selecting FBA inventory reimbursement and providing shipment IDs, ASINs, and supporting documents.

Submitting the claim and tracking its status in Case Logs.

3. Use Amazon seller reimbursement services to automate the process

Manually tracking every lost item and filing individual claims can be overwhelming, especially for high-volume sellers. Using an Amazon seller reimbursement service can:

• Scan seller accounts for missing refunds automatically.

• Detect lost inventory and overcharged fees.

• File claims quickly and accurately with supporting documentation.

• Follow up on claims to ensure approval.

For example, a seller with 10,000 orders per month may find it impossible to track every lost or mishandled item. An automated reimbursement service can identify hundreds of unprocessed refunds and recover thousands of dollars with minimal effort.

Final thoughts

Amazon FBA inventory reimbursement is an essential part of protecting your profits and preventing financial losses. Many sellers lose money unknowingly due to missing inventory, damaged stock, or incorrect refunds, and Amazon does not always process reimbursements automatically.

By actively tracking inventory, filing claims, and using Amazon seller reimbursement services, sellers can recover lost funds, avoid hidden losses, and maximize their profit margins. Staying proactive with Amazon lost inventory reimbursement ensures sellers get compensated for every mistake Amazon makes in handling their inventory.