Claim What Amazon Owes You Through the Amazon Reimbursement Program

December 9, 2021
Written by Nicasio Co III
amazon reimbursement program

Fulfillment by Amazon (FBA) is a service available to sellers to help scale operations by providing shipping, packing, and fulfillment to customers. When registered for FBA, Amazon is responsible for any damages to your inventory incurred during its operations. But as a seller, how can you be compensated for these damages. That's where Amazon's reimbursement services come in. It's essential to keep track of reimbursements so that you can claim what's owed to you. We'll show you how to navigate through Seller Central to obtain your Amazon FBA reimbursement.

Amazon maintains its role as the largest e-commerce platform in the world. It ranks the highest number of active customers, sellers, and revenues. However, while Amazon does indeed have several achievements, it doesn't happen without a couple of hiccups along the way.

According to Market.us, Amazon ships out approximately 1.6 million packages each day under their Fulfillment by Amazon (FBA) service. As a result, certain unprecedented damages to products occur along the way. As a result, sellers are often eligible for reimbursement according to FBA Reimbursement Policy.

When are you entitled to an Amazon FBA reimbursement?

You may file for a reimbursement claim when a product is lost or damaged during:

  • Inbound shipment to an FBA warehouse
  • Operations in Amazon's fulfillment center
  • Removal of units from an Amazon fulfillment center
  • Returns by customer

Eligibility for Amazon Reimbursement Program 

You are eligible to claim Amazon reimbursement if you meet the following statements:

  • Your Amazon account carries a normal status with no pending concerns (suspensions, deactivations, etc.) 
  • The customer did not damage your product.
  • Your product is not labeled for disposal by either you or Amazon.
  • Your shipping plan is accurate, stating the correct number of items sent
  • Your product follows the FBA inventory requirements and is allowed to be sold according to FBA product items and restrictions.
  • Your product was being handled by FBA when damages occurred.

Amazon prohibits the sale and reimbursement of products considered dangerous goods, hazardous materials, heat-sensitive products, and more. Make a habit of reviewing the list of prohibited items on Amazon Seller Central before sending your inventory.

There are several steps to claiming your FBA reimbursement based on the four aforementioned scenarios. Keep track of your reimbursement requests and avoid requesting Amazon for multiple reimbursements simultaneously so as not to be flagged as a violation.

Shipment to Amazon

FBA errors often also include discrepancies in inbound shipment. Therefore, be sure to review your shipments and inventory adjustment reports regularly.

When inspecting your inventory, ensure that the verified shipment delivery date is within nine months. Next, look at the Reconcile tab located on the Summary page of your shipping workflow. Before filing for claims, verify the contents of your FBA shipment, the quantity stated, and the other details in your shipping plan. Next, inspect any discrepancies on the Reconcile tab containing the fulfillment center's information. Finally, keep in mind that Amazon may have already reimbursed you for the units you originally wanted to file. You can confirm this by visiting your Reimbursements report.

After going through your report, visit the Reconcile tab to claim for lost inventory items. You may file claims for damaged units on the Contact Us page in Seller Central. Again, documents that support your claim should be readily available for Amazon verification. Documents required include Amazon shipment ID, proof of FBA inventory ownership, and proof of delivery.

Fulfillment Center Operations

Amazon's Fulfillment Centers are busy places. And during these processes, damages may happen. As an Amazon seller, you should know what to do if this happens to any of your products.

To file for reimbursement:

  1. Check the Inventory Adjustments report and verify that the unit was either lost or damaged no more than 18 months ago.
  2. Ensure that the unit was not restored or found in a sellable condition and not defective.
  3. Go over your Reimbursements report to determine whether or not the unit has already been reimbursed.

If you are still eligible for reimbursement, file a claim. You will need to use your transaction item ID found in the Inventory Adjustments report for damaged items. Use the Fulfillment Network Stock Keeping Unit (FNSKU) for lost items. These two are found in the Inventory Adjustments report. By inputting them into the tool below, you'll be able to find out if you're eligible to file a claim.

Customer returns

When Amazon loses or damages your inventory during the fulfillment process, they must reimburse you. The claim window for filing a customer returns claim is 60 days to 18 months from when the customer's refund or replacement occurred. Before submitting a claim, check if Amazon has refunded or replaced the item on your FBA order on the Manage FBA Returns report. 

After verifying the details above, continue to file for reimbursement claim through Amazon's status checker by inputting the customer order ID.

Removals

Items can get lost or damaged during their removal in transit from Amazon’s fulfillment centers to your returns shipping address. In this case, you should file for a claim of lost items no more than 14 days from the last confirmed movement of removal shipment, and damaged inventory can be submitted for claim right after you receive them. You must file all claims within 18 months from the date of item removal from an Amazon facility.

Amazon will then prompt you to provide information and documents that support your claim. These include Amazon Removal Order ID, shipment ID, active tracking ID/proof of delivery, FNSKUs, and photographs of the unit and the packaging. The removal order ID should be put into the tool below to check your eligibility and file a claim.

a man holding his credit card in front of a computer

Final Thoughts

Being an Amazon seller is not an easy task. There is a lot to manage, especially when it comes to inventory. If you have been an Amazon seller and haven't reviewed your reimbursement eligibilities, now is the time to recheck your reports and statuses.

At Seller Interactive, we help sellers audit their inventory management and check for unclaimed or eligible reimbursements. Our professionals are eager to assist you in all things Amazon refund and reimbursement-related. Get in touch with Seller Interactive today to discuss your reimbursement strategy at [email protected]!

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