FBA Reimbursement FAQs: Expert Answers for Sellers

Amazon FBA sellers lose 1%-3% of annual revenue due to inventory errors, fee discrepancies, and unclaimed reimbursements. Missing out on reimbursements can cost sellers up to 60% of eligible claims. Staying on top of claims and Amazon's changing policies can recover thousands of dollars annually.

Key Takeaways:

• Top Reimbursement Types: Lost/damaged inventory, fee errors, customer return issues, and inbound shipment problems.

• 2025 Policy Changes: Starting March 31, 2025, reimbursements for lost/damaged inventory will be based on manufacturing costs, not sale prices.

• Claim Deadlines: Fulfillment center claims must now be filed within 60 days, down from 18 months.

• Tools to Help: Use software like Refunzo or Getida to track discrepancies and automate claims.

Quick Tips:

• Audit Regularly: Review inventory, returns, and fee reports weekly or monthly.

• Prepare Documents: Keep shipping manifests, invoices, photos, and tracking info ready for claims.

• Act Fast: Submit all pending claims before the March 10, 2025, deadline to maximize reimbursements under current rules.

Amazon's rules are changing fast. Stay proactive, keep accurate records, and use tools to recover every dollar you're owed.

When Amazon Owes You Money: Common Cases

Lost or Damaged Items in FBA Centers

With millions of items handled daily, Amazon's FBA centers occasionally lose, damage, or misplace inventory. In fact, inbound shipment errors account for about 40% of claims.

For instance, if your product is damaged by warehouse equipment, you can typically expect reimbursement for both the item's cost and lost profit.

Now, let’s dive into how fee-related mistakes can chip away at your revenue.

Fee Mistakes and Billing Errors

Fee errors are a hidden drain on profits, with unrecovered fees costing sellers an average of up to 3% of their annual revenue. Some common billing mistakes include:

• Incorrect measurements leading to inflated fulfillment fees

• Overcharged storage fees

• Miscalculated referral fees

• Wrong size tier assignments

"Since I started paying attention to Bindwise alerts 4 months ago I noticed wrong dims were costing me at least $4,000 a month." – Manta_Ray_Bay store, Amazon DE

To avoid these errors, consider requesting a cubiscan twice a year to ensure your product measurements are accurate.

After fee-related issues, another major challenge for sellers is managing customer returns. Let’s take a closer look.

Missing Items After Customer Returns

Errors in return processing can have a big impact on your bottom line. Amazon might owe you money if:

• Refunds are issued without the item being returned

• Returned items are mishandled, damaged, or incorrectly processed

• Items are received in unsellable condition

Keeping detailed records and consistently reviewing your FBA inventory reports is crucial. Amazon’s reimbursement policy allows sellers to recover losses when inventory discrepancies arise.

How to File Reimbursement Claims

Finding Missing Money in Your Account

To catch discrepancies in your account, regularly review FBA reports and reconcile your inventory. This helps you spot mismatches between your records and Amazon's inventory counts. Automated tools like Refunzo, which use 21-point reconciliation checks, can simplify this process by analyzing multiple report types:

Once discrepancies are identified, gather the necessary documents to support your claims.

Required Documents for Claims

Since August 2024, specific documents are required for each type of claim. Here's a quick guide:

Having these documents ready ensures your claims process goes smoothly.

Claim Deadlines and Processing Times

As of October 23, 2024, stricter deadlines apply to reimbursement claims. For sellers in the US marketplace, here are the key timeframes:

1. Fulfillment Center Operations Claims: Must be filed within 60 days of the incident, down from the previous 18-month window.

2. Customer Return Claims: Deadlines range between 60 and 120 days, depending on the return type and condition.

3. Removal Claims: For items lost during removal, claims must be submitted within 15 to 75 days. Other removal-related claims require submission within 60 days of delivery.

Fee adjustment claims are typically resolved quickly, often within 1-5 business days. Submitting claims on time is essential to avoid losing out on reimbursements.

Tips to Get More Claims Approved

Record Keeping Requirements

Keeping thorough records is key to getting claims approved. Set up digital folders for each shipment, storing purchase orders, invoices, and delivery confirmations. Add timestamped photos of your inventory before shipping - these can be crucial if items are damaged at an FBA center.

Software Tools for Finding Claims

Detailed records are a start, but automation tools can take your claim recovery to the next level. Tools like Refunzo offer free lifetime reconciliation, using automated 21-point checks to spot discrepancies. Platforms like Getida and Sellerise speed up the detection and recovery process. For example, Getida boasts a 90% success rate for opened claims and can deliver recovery rates up to 166% higher than manual efforts.

"We audit more consistently. We find more discrepancies. We reconcile more claims. The refunds roll in, unlocking an additional revenue stream to reinvest in your Amazon business. It's more than money back - it's the way forward."

Common Filing Mistakes to Avoid

Avoiding mistakes is just as important as filing claims. Here are some common errors that can hurt your reimbursement chances:

• Missing Documentation: Always include tracking numbers, photos, and inventory reports.

• Missed Deadlines: Claims must be filed within Amazon's 60-day window. Regularly check for discrepancies to stay on schedule.

• Wrong Claim Categories: Double-check Amazon's current guidelines to file under the correct category.

If your case is complex, consider professional claim services. One Getida user recovered between $2,000 and $3,000 after signing up, showing the potential benefits of expert help.

How to File Claims on Seller Central for Different Amazon FBA Discrepancies

2025 Amazon Reimbursement Rules

Amazon is introducing major changes to its reimbursement policies in 2025, which will impact how sellers handle claims for lost or damaged inventory.

New Rules for 2025

Starting March 31, 2025, reimbursements for inventory lost or damaged before a customer order will be based on manufacturing costs. For losses occurring after an order, the reimbursement will still be calculated as the sale price minus fees. To help sellers, Amazon is launching a 'Manage Your Manufacturing Cost' portal in January 2025, allowing sellers to update their sourcing costs directly.

Here’s an example: A seller generating $1 million in revenue with a 2% loss rate could see approximately $15,000 in reduced reimbursements annually under the new rules.

What These Changes Mean for Sellers

The updated policy introduces stricter deadlines for filing claims:

Additionally, reimbursements will no longer cover shipping, handling, customs duties, or inbound placement fees. Automated estimates from Amazon might not fully reflect true costs, particularly for categories with high margins, leading to potential underestimations of 15–25%.

Meeting New Policy Requirements

To adapt to these changes and secure reimbursements, sellers should focus on updating their processes:

• Keep Accurate Records: Ensure you have detailed supplier invoices, purchase orders with cost breakdowns, shipment tracking, and proof of delivery.

• Use the New Portal: Regularly update manufacturing costs, monitor inventory discrepancies, and track claims through Amazon's new system.

• Manage Deadlines: Submit any claims for inventory losses before March 2025 by March 10, 2025, to qualify for sale price-based reimbursements. Claims filed after this date will fall under the new manufacturing cost-based system.

For high-margin products, consider third-party inventory insurance as a way to mitigate potential losses under the updated reimbursement structure.

Conclusion

Main Points Summary

Managing FBA reimbursements effectively can have a direct impact on your profits. With Amazon's new manufacturing cost-based reimbursement system rolling out on March 10, 2025, staying ahead of these changes is more important than ever. To succeed, focus on keeping accurate records, performing regular account audits, and staying on top of policy updates. FBA discrepancies can lead to a loss of 1–3% of your annual revenue, making it crucial to address these issues proactively.

"When Amazon wants you to make money, you'll make a lot of money. But when they change the rules, you need to be prepared to adapt quickly." - Yoni Mazor, Getida

By following these practices, you can keep your FBA operations steady, even as policies evolve. Taking action now ensures you recover every dollar you're entitled to.

Action Items for Sellers

To improve your reimbursement process and streamline operations, consider these steps:

• Set up a reliable documentation system to track manufacturing costs, shipping details, and inventory movements. Keep these records updated to avoid errors.

• Perform regular audits using tools like Refunzo's 21-point reconciliation system. Focus on inbound shipments and fulfillment fee calculations during these checks.

• Submit all pending claims before the March 10, 2025, deadline to avoid missing out on reimbursements.

• Mitigate risks by documenting costs carefully and exploring other sales channels to reduce dependency on one platform.

These actions not only help you recover reimbursements but also strengthen your overall FBA strategy, keeping your business profitable in a changing environment.

Related posts

• 5 Ways to Maximize Your Amazon FBA Reimbursement Claims

• Understanding Amazon's FBA Reimbursement Policy

• Amazon FBA Fee Errors: Detection and Resolution Guide