Amazon sellers lose up to $1.2 billion annually due to fulfillment issues. Recovering these losses requires filing accurate and timely claims, but many sellers make avoidable mistakes. Here are the five most common errors and how to fix them:
Missing Filing Deadlines: Amazon reduced claim windows to as little as 60 days in October 2024. Act fast or lose your chance.
Submitting Incomplete Documentation: Missing invoices, photos, or reports can lead to claim rejections.
Using Outdated Product Measurements: Incorrect dimensions lead to overcharges and denied claims.
Not Checking Reimbursement Amounts: Amazon now reimburses based on manufacturing cost, not selling price, as of March 2025.
Filing Duplicate Claims: Repeated submissions can delay or jeopardize reimbursements.
Quick Tip: Use tools like Refunzo to automate claim tracking and ensure compliance with Amazon’s strict policies. Staying organized and proactive can help you recover lost revenue and protect your business.
Amazon FBA Reimbursement Claims - The Do’s and Don’ts You Need to Know | Seller Guide
1. Missing Filing Deadlines
Amazon has made major changes to its claim filing deadlines, and they’re much tighter than before. On October 23, 2024, Amazon shortened the timeframe for filing claims by a staggering 89%. Sellers previously had an 18-month window to file claims for lost or damaged inventory, but now they only have 60 days. This abrupt change has left many sellers scrambling, as the risk of losing refunds has significantly increased.
Customer return claims, which once ranged between 60 days and 18 months, are now restricted to just 60–120 days. Meanwhile, inventory removal claims for items lost in transit have been reduced from a window of 14 days to 18 months down to 15–75 days.
Impact on Reimbursement Eligibility
These shorter deadlines mean one thing: If you miss them, you lose your chance to recover your money. Amazon won’t process claims after the deadline passes, regardless of the claim's validity or the amount owed. This poses a serious challenge for sellers who might only notice issues weeks - or even months - after they’ve occurred.
Effect on Financial Accuracy
Failing to file claims on time doesn’t just mean losing out on refunds - it can also mess with your financial records. Unclaimed reimbursements for lost inventory, incorrect fees, or mishandled returns can create a gap between your actual losses and what you could’ve recovered. For small businesses, this directly impacts profit margins, cash flow, and overall financial planning.
Compliance with Amazon Policies
Timely and accurate claims are now more important than ever to stay in line with Amazon’s policies. Since November 1, 2024, Amazon has started issuing proactive reimbursements for certain warehouse losses and customer returns. However, many claims still require manual filing, and the shorter deadlines demand stricter monitoring.
To stay on top of these changes, sellers should:
Review the FBA Inventory Reconciliation Report weekly instead of monthly.
Set reminders to check for eligible claims every 15 days.
Regularly download and cross-check inventory adjustment reports, transaction logs, and return reports with fulfillment center activities.
Tools like Refunzo can simplify this process by running over 20 criteria checks and generating detailed reimbursement reports. Automating these tasks can help ensure you don’t miss any claims and maximize your refunds.
2. Submitting Incomplete Documentation
Submitting incomplete documentation is one of the fastest ways to get your claim rejected by Amazon. The platform relies heavily on the paperwork you provide to verify claims and match them to its internal records. Even one missing document can result in an outright denial.
A 2024 study highlights this issue, showing that claims with all required documentation are 78% more likely to be approved compared to those missing key records.
Impact on Reimbursement Eligibility
Amazon's documentation requirements vary depending on the type of claim. For example:
FBA Inbound claims: Require an original invoice that includes the purchase date, product names, quantities, and full details of both the supplier and buyer.
Lost or damaged inventory claims: Typically need invoices, reconciliation reports, and photos.
Fee disputes: Call for shipping manifests, dimension records, and weight data.
Customer returns: Require tracking information and photos showing the item's condition.
The tricky part? Amazon won’t tell you which documents are missing. This means you need to submit a complete set of records right from the start. Failing to do so not only delays reimbursements but can also throw off your financial records.
Effect on Financial Accuracy
Missing documentation doesn’t just lead to denied claims - it also creates a ripple effect on your financials. Every denied claim represents unrecovered losses, which can shrink your profit margins and skew your cash flow projections. For sellers managing hundreds of SKUs, even a handful of denied claims can result in thousands of dollars in lost revenue. This makes it harder to maintain accurate inventory valuations and calculate the true cost of goods sold.
Compliance with Amazon Policies
Beyond the financial hit, incomplete documentation can put you at risk of violating Amazon's policies. Their claim verification process is strict, and incomplete submissions increase the chance of non-compliance. Amazon uses your documentation to cross-check claims with its internal records, so thoroughness is non-negotiable.
To avoid these pitfalls, it’s critical to stay organized. Here are a few tips to streamline your documentation process:
Use consistent naming conventions for your files.
Maintain secure digital backups of all documents.
Categorize files clearly and create a master spreadsheet linking claims to their corresponding records.
Retain all documentation for at least 18 months.
Taking the time to set up a solid organizational system can be the difference between securing reimbursements and leaving money on the table.
3. Using Outdated Product Measurements
Keeping your product measurements up to date is crucial for avoiding unnecessary FBA fee overcharges and ensuring you can make valid reimbursement claims. If the dimensions or weight of your products in Amazon's system are outdated, you might be paying more in fees than you should - without even realizing it.
Amazon relies on these measurements to calculate FBA fulfillment fees, monthly storage fees, and removal order fees. If there’s a mismatch between your product’s actual size and what’s recorded in Amazon’s system, it can lead to incorrect charges. These discrepancies not only inflate your costs but also create opportunities to file reimbursement claims - provided you have the proper documentation.
Impact on Reimbursement Eligibility
When Amazon miscalculates your fees due to outdated measurements, you may qualify for reimbursements. But proving your case isn’t always straightforward. You’ll need precise documentation that highlights the error.
For instance, one seller had two product variations incorrectly classified as "large bulky", leading to a $5 fee increase per unit. They submitted a support ticket, and while one product was corrected, the issue reoccurred. Ultimately, the seller was told they didn’t qualify for reimbursements. This underscores the importance of accurate, consistent records of your product measurements.
Amazon verifies seller-provided measurements against its internal data. To strengthen your reimbursement claims, use reliable measuring tools and document everything thoroughly.
Effect on Financial Accuracy
Errors in product measurements can disrupt your financial accuracy and compliance with Amazon’s policies. Studies suggest that up to 20% of inventory might be misclassified, resulting in unnecessary overcharges that eat into your profit margins. Regular audits and measurement checks can help sellers recover 2–5% of their FBA costs, making it essential to review fee reports and address discrepancies promptly.
Compliance with Amazon Policies
Amazon’s guidelines for product measurements are strict, and failing to comply can lead to more than just fee errors. Inaccurate measurements might result in incorrect storage charges or, in extreme cases, Amazon disposing of inventory it deems unsaleable - sometimes without notice.
Recent policy updates have made compliance even more urgent. Starting October 23, 2024, Amazon reduced the FBA reimbursement claim window from 18 months to just 60 days. This means sellers now have far less time to spot and address measurement-related fee errors.
To ensure compliance and protect your reimbursement eligibility, follow Amazon’s measurement methods closely. Place your product package - as it would be received by a customer - on a flat surface. Fully extend any loose packaging material and measure the longest edge as the length, the second longest as the width, and the shortest as the height. If the packaging has a bulge, measure the thickest part.
Uniform packaging is key. Use tight-fitting or vacuum-sealed polybags, tape down any flaps, and avoid packaging that can easily expand. Regularly audit your FBA Fee Details Report in Seller Central to identify discrepancies. Compare Amazon’s listed dimensions with your manufacturer’s specifications, and if you find any mismatches, submit a remeasurement request right away.
Staying on top of your product measurements not only prevents overcharges but also ensures you’re paying only for the actual fulfillment costs, helping you run a more efficient and profitable operation.
4. Not Checking Reimbursement Amounts
Blindly trusting Amazon's reimbursement calculations can cost you big time. One of the most expensive mistakes FBA sellers make is accepting these reimbursements without double-checking the amounts.
Amazon's automated system calculates reimbursements based on median prices, but these figures often fall short of covering your actual costs. This issue has become even more pressing since Amazon made significant changes to its reimbursement policies.
Starting in March 2025, reimbursements will be based on manufacturing cost instead of the selling price.
Aspect | Old Rules | New Rules (March 2025) |
|---|---|---|
Reimbursement Basis | Selling price | Manufacturing cost |
Claim Window (US) | 18 months | 60 days |
Return Claim Window | Not specified | 60–120 days |
Removal Claim Window | Not specified | 15–75 days |
Under these new rules, reimbursements no longer include profit margins, shipping costs, handling fees, or customs duties. Even worse, when Amazon lacks exact pricing data, they assign values based on "similar" items - an approach that may not reflect your true costs.
Impact on Reimbursement Eligibility
The shift to manufacturing cost-based reimbursements means you’ll only recover what you paid to source your products. This change leaves out any compensation for additional costs or lost profits, putting even more pressure on sellers to track their expenses carefully.
Effect on Financial Accuracy
If you don’t verify your reimbursement amounts, you risk losing money. Amazon's automated estimates often miss category-specific margin differences, potentially underestimating your costs by 15–25%. For example, if your annual revenue is $1,000,000, this could translate to $15,000 less in reimbursements. Add to that the fact that 3% of annual revenue can be lost to FBA discrepancies, with nearly 40% of reimbursements tied to inbound shipment errors.
The good news? Regular audits of your FBA reimbursement reports can help you recover 2–5% of your FBA costs. That’s money you’re owed, but only if you take the time to claim it.
Compliance with Amazon Policies
To stay compliant with Amazon’s policies and ensure you’re fairly reimbursed, you need to understand how payouts are calculated and keep your cost records up to date. With some claim windows now as short as 60 days, it’s crucial to act quickly when discrepancies arise.
Here’s what you can do:
Keep all relevant documentation, like invoices, shipping receipts, and cost records.
If Amazon’s reimbursements don’t match your actual costs, use your records to request corrections.
Be proactive - Amazon owes money to 99% of sellers, but many fail to claim the full amount due.
If manually auditing your FBA reports feels overwhelming, tools like Refunzo can simplify the process. Refunzo offers a lifetime free Amazon FBA reconciliation service with automated 21-point checks. This tool identifies discrepancies and ensures you collect every dollar owed to you.
5. Filing Duplicate Claims
Another common mistake sellers encounter, beyond documentation and measurement errors, is submitting duplicate claims. Filing the same claim more than once not only wastes time and effort but can also harm your relationship with Amazon. Duplicate claims are typically flagged, leading to automatic rejections and delays in processing legitimate requests.
Impact on Reimbursement Eligibility
Submitting duplicate claims can jeopardize your chances of getting reimbursed. Amazon has strict policies for claim submissions, and repeated errors may hurt your credibility as a seller. Claims flagged as duplicates are often rejected outright, making it crucial to maintain accurate records of your submissions.
Many sellers mistakenly believe their claim was ignored and file again too quickly. Instead, give Amazon's support team at least a week to respond before escalating the issue or submitting a follow-up.
Effect on Financial Accuracy
Duplicate claims can also create confusion in your financial tracking. It becomes harder to distinguish between claims that have been approved, those still pending, and those rejected. This lack of clarity can lead to accounting errors, such as miscalculating reimbursements owed, making financial reconciliation a headache.
Compliance with Amazon Policies
Amazon regularly updates its claim policies, including deadlines, required documentation, and processing times. Filing duplicate claims goes against these guidelines and could put your account at risk. Staying up to date with Amazon's rules is critical for smooth FBA operations and avoiding unnecessary setbacks.
Submitting claims accurately is key - not just for faster reimbursements but also for maintaining clean and reliable financial records.
To avoid these issues, consider improving your tracking system. Before filing a new claim, check your Reimbursement Report in Seller Central by searching with the ASIN or SKU. Keep a log of all claims in a simple spreadsheet to track their status. For sellers managing large inventories, tools like Refunzo can help automate claim tracking and generate detailed reports, ensuring you don’t accidentally submit duplicates.
How to Avoid These Mistakes
To make sure you get every reimbursement you're entitled to, it's important to avoid the common errors we discussed earlier. Here's how you can stay on top of things: organize your records, monitor your data, and automate repetitive tasks.
Start by setting calendar reminders to review your Seller Central reports monthly, and make it a habit to check for discrepancies on a weekly basis. Since Amazon generally allows a 60-day window for most inventory-related claims, staying proactive ensures you won’t miss these deadlines.
Next, focus on keeping your records organized. Use a digital filing system to store all essential documents, such as invoices, receipts, packing slips, Bills of Lading (BOL), proof of inventory ownership, delivery confirmations, and any paperwork showing discrepancies in fees. Being meticulous here can save you a lot of trouble later.
Make it a point to review your inventory and payment reports every week. This regular auditing can help you quickly spot issues like lost inventory or incorrect fees while they're still within Amazon's filing deadlines.
Ensure your product information is accurate. Update measurements, weights, and dimensions whenever you modify your products or packaging. Before submitting a claim, double-check that the product data in Seller Central matches your current inventory. This step can prevent claims from being automatically rejected due to outdated or incorrect information.
Keep track of every claim you file. Log details like the claim ID, date, ASIN/SKU, issue type, and status. Before submitting a new claim, check the Reimbursement Report in Seller Central to confirm you haven’t already filed for the same issue.
For an easier way to manage this process, consider using Refunzo's free FBA reconciliation service. It offers automated checks and optional claim assistance, providing detailed reports that show exactly how much Amazon might owe you. Plus, it gives real-time refund estimates and ensures claims are properly documented, reducing the chances of rejection due to missing information or duplicate submissions.
Lastly, stay updated on Amazon’s policies. Regularly check Seller Central announcements, as Amazon frequently revises claim requirements, deadlines, and documentation standards. Bookmark the FBA reimbursement policy page and review it monthly to ensure your processes align with the latest guidelines.
Conclusion
Filing Amazon FBA claims the right way is essential to protecting your profits. With Amazon's automated reimbursement program leaving up to 40% of potential reimbursements unclaimed, some sellers are missing out on as much as 60% of what they're owed. That’s thousands of dollars left on the table simply because the claims process isn’t being properly managed.
As discussed earlier, avoiding common mistakes is key. Issues like missed deadlines, incomplete documentation, outdated measurements, unchecked reimbursements, and duplicate claims can all be avoided with a more organized approach. Amazon's strict guidelines require precision - every detail, from product dimensions to filing deadlines, plays a role in ensuring success.
The silver lining? You don’t have to handle this alone. Tools like Refunzo can make a huge difference. They offer automated reconciliation checks, detailed reimbursement reports, and optional claim assistance to simplify the process and minimize costly errors. Many sellers have already seen the benefits of using such services. By automating your claims process, you not only ensure compliance but also secure your revenue and enhance overall efficiency.
FAQs
What steps can I take to meet Amazon's updated claim filing deadlines?
To align with Amazon's updated claim filing deadlines, it's crucial to familiarize yourself with the specific timelines for different claim types. For instance, if you're dealing with lost or damaged items at Fulfillment Centers, claims need to be filed within 60 days of the incident. On the other hand, for customer return claims, the submission window usually falls between 45 and 105 days after the refund or replacement date.
Staying on top of these deadlines requires meticulous inventory tracking and regular audits to quickly spot discrepancies. Incorporating automation into your reconciliation process can further streamline this effort, helping you identify issues early and submit claims within the required time frame. By staying organized and proactive, you can increase your chances of securing reimbursements and avoid missing critical deadlines.
How can I keep my documentation organized to avoid Amazon FBA claim rejections?
To reduce the risk of claim rejections, keeping your documentation neat and precise is key. Start by implementing a clear and consistent file naming system - something like [ASIN]_[Document Type]_[Date] works well for quickly finding critical files. Make it a habit to maintain comprehensive records of every transaction. This includes shipping receipts, invoices, and return confirmations. Adding timestamps and photos to these documents can make your claims even stronger.
Don't forget to regularly review your inventory and records. Spotting discrepancies early helps you stay compliant with Amazon's guidelines. Staying organized and ahead of potential issues can greatly increase the likelihood of having your claims approved.
How will Amazon's new reimbursement policy based on manufacturing costs impact my profits?
Amazon's Updated FBA Reimbursement Policy: What Sellers Need to Know
Starting March 10, 2025, Amazon will be implementing a new method for calculating reimbursements for lost or damaged inventory under its FBA program. Instead of basing refunds on the retail value of your products, the reimbursement will now reflect the manufacturing cost.
This shift could mean smaller payouts for sellers, as manufacturing costs are typically lower than retail prices. To prepare for this change, it's crucial to ensure that your manufacturing costs are accurately documented in your Amazon account. While this new calculation method might not fully offset your losses, taking a proactive approach can help you safeguard your profit margins and remain compliant with Amazon's updated policies.
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