Understanding The Different Classes of Amazon Reimbursements

October 18, 2021
Written by Kevin Wong
Amazon reimbursements

Have you ever been reimbursed by Amazon? If so, what classes of reimbursement did you receive? Unfortunately, many sellers are unaware of the process for refund reimbursements for Amazon FBA. Many even wonder why Amazon is paying you back at all! In this blog post, we'll examine the different types of Amazon reimbursements and how you'll qualify for them. Read on to learn more about it!

1. Inbound shipment issues

If your products are enrolled in the Fulfilled by Amazon (FBA) program, you have to send your items to their warehouse so that Amazon can fulfill them for you. Although it's generally safe to ship products without encountering any nuisances, occasionally, issues may arise. In some cases, these problems can occur even before your products even reach Amazon's warehouse. Here are some of the issues that you might encounter:

  • Missing units: This happens when your products reach the warehouse, but they cannot scan your items for some reason. It may also be a result of Amazon not officially receiving your products at all.
  • Lost by inbound courier: Upon shipment, the inbound courier may have lost or misplaced your items. In this case, your products have not reached the Amazon warehouse.
  • Shipment closes some items: There are instances where your products were delivered and scanned correctly but closed while missing some products.

Don't stress too much about how to get reimbursed from Amazon FBA regarding inbound shipments. All of the products you enroll in are protected from any lost shipment issues, so you can expect to get reimbursements in these cases. 

2. Damaged FBA inventory

In FBA, once you've shipped your products to an Amazon fulfillment center, they become fully protected by Amazon reimbursements should you encounter any problems.

Due to human error, in some cases, products may become damaged during processing. Don't stress too much about getting Amazon reimbursements for these. Because the products became damaged on the warehouse premises, they are entirely liable. All you have to do is file for an inventory reimbursement, and you'll have these credited to your Amazon seller account afterward.

3. Lost or misplaced inventory

Thousands of sellers enroll their products in Amazon FBA, so you can expect that their warehouse is packed with tons of inventory. Unfortunately, due to the massive amounts of stock in a fast-paced environment, there's always a chance that inventory is lost or misplaced.

Lost and missing inventory is probably the most common reasons for Amazon reimbursements. 

4. Issues with customer returns

When customers are unsatisfied with their order, they can return it within a specific period. As an FBA seller, you are liable for Amazon reimbursements in these cases. Here are some of the situations you might encounter:

  • Restocking fees are not credited: There are some customer returns where Amazon charges 20% for the restocking FBA fee. These fees get deducted from your account. In some cases, after restocking, the fees are still not refunded back to your account - this will be considered as a loss on your part.
  • The customer errors: Customers put in the amount to be refunded when they return a product. There are some cases where they put in much more than the exact cost of the product. There are also some instances when the customer refunded for two items but only returned one.
  • The customer did not return the product but refunded or received a replacement: If a customer asks for a replacement but doesn't send back the initial order, it is considered a loss on your part. Of course, you can always ask for Amazon reimbursements for problems with customer returns.
  • The returned product is unsellable: Some returned products may have been badly damaged by the customer or during the shipment return. If this is the case, you cannot resell this product, and you can file for an Amazon reimbursement claim for these. 

Summary: You are Safe With Amazon FBA’s Reimbursement System

Some sellers are hesitant to sell on e-commerce platforms because of reimbursement complications. However, keep in mind, considering all the situations listed above, that it's typically easier to get Amazon reimbursements than it is on other platforms. 

So it's safe to say that Amazon takes care of customer returns and shipment issues for their sellers. Have any questions regarding how long does it take to get reimbursed from Amazon? Feel free to send us a message at [email protected]! With our extensive experience handling Amazon FBA reimbursements, we are confident we can assist you with all your concerns. 

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