If you have been selling on FBA, Amazon may owe you money for inventory mistakes.
If you’re not monitoring your seller central account frequently for errors, then the reimbursement amount will be higher than you expect.
Amazon stores and processes orders of millions of products every day. Hundreds of machines and Amazon employees are involved on a daily basis, and mistakes are bound to happen. There are multiple areas where Amazon owes you money.
In this article, let’s look at the common areas of Amazon FBA reimbursement and see different ways to get your money back.
A quick peek into the content:
As I mentioned, there are a few situations where Amazon may need to reimburse your money. Let’s look at them one by one.
Once you send inventory to Amazon FBA warehouses, it may get lost for several reasons. You might be missing a number of units from your inventory. This may not be attributed to recent orders. One of the reasons could be that it might get placed in another seller’s inventory. This can happen because of the huge inventory and more orders. So you need to figure out what actually happened by taking a look at your inventory reports.
Your FBA inventory can be damaged by Amazon during order fulfillment or by carriers when they are delivering customer returns. This is another common area for Amazon’s FBA reimbursement.
You can find the details of the damaged items in the Amazon seller central damaged inventory report.
You need to monitor these situations actively and see if you got the reimbursement from Amazon. In some cases when an employee causes damage to your item, Amazon initiates the case and reimburses your money. In other cases, you may need to check and file a claim to process your FBA reimbursement.
Customer returns are a common part of any e-commerce business. Amazon handles customer returns and refunds for FBA sellers. However, Amazon doesn’t always follow the rules. At times, customers get a refund even if they forget to return the product.
With so many returns being processed every day, reimbursement claims tend to be higher in this category. The reason?
Amazon needs to correct the issue within the allotted time. If it fails to do so, you can raise a reimbursement claim to get your money back.
Let’s take a look at a few common ones.
Product isn’t returned after refund – This happens when a customer is refunded the amount but did not return the product.
Product isn’t replaced after return – The customer received a replacement for the product, but the initial item isn’t returned to the seller.
The returned item isn’t added to your inventory – The customer returns the item, but for some reason, it is not returned to the inventory.
At times, you may face issues while processing the orders. Your customer might receive four quantities of the product even if they ordered three. Most of the time, customers won’t return the extra item. Amazon may not recognize this error. So it’s up to you to detect the errors from your inventory and order details.
There are many types of Amazon FBA fees like commission fees, storage fees, long-term storage fees, and shipping fees. These fees change with the category you are selling in, as well as the size and storage of the item. You can be overcharged sometimes.
This can account for a major part of your FBA reimbursements, especially if you haven’t kept track for a few weeks.
You can take a look at the list of FBA issues here.
Fortunately, we have a few ways to claim the reimbursements. Let’s get into the details.
This is, of course, the cheapest method – doing it manually without anyone’s help. But the downside is that you can go wrong, things can get more complicated, or it can be time-consuming – which may cost you a lot.
You don’t want to end up spending hours on reports just to send some invalid claims. Do you?
Unless you are a data expert in understanding Amazon’s reports, this may not be the right method for you.
You can find a few potential automated reimbursement service tools for your Amazon business. In most cases, this is the easiest way to claim reimbursements. However, it may cost you a lot.
Few of the popular ones include Amzrefund, Refundly, and Amzrefund etc.
These tools also vary based on their functionality. While a few deal with data analysis and leave the claims to you, the others will take care of the entire reimbursement process.
Recommended Guide: Amazon Seller Tips to Increase Sales in 2023.
All you need to do is to decide:
As I said, prices may vary. Most of them are commission based so they take a part of your claim amount, while there are a few others who want to get paid upfront.
The last option is to hire a virtual assistant to get the job done. This means outsourcing your work. You can outsource all the manual work, right from downloading reports to making claims on seller central.
The biggest advantage of outsourcing your reimbursement service is that you can get all the repetitive tasks done by the virtual assistant (VA). You also have the flexibility to decide on the work you choose to outsource. You can use the VA to analyze your data on claims, and submit cases yourself, if you don’t want to give them access to your Amazon seller central account.
As mentioned, there are different methods available to get your money back from Amazon. However, you can still do it yourself if you are comfortable with basic tools like MS Excel or Google sheets. There is loads of data to process, so it can be hard.
Outsourcing your Amazon reimbursement service to a virtual assistant can be cost-effective. Based on your interest and time, you can outsource the work. On the other hand, getting an expert service will cost more, and you still have to ensure that the work is done efficiently.
If you are looking for a hands-off approach, you should opt for an automated FBA reimbursement tool. The Amazon reimbursement tools available would function differently, but the underlying principle remains the same.
Note: Be courteous and gentle while writing an email. Be simple and direct, because it always pays off to be professional.
Most of the common FBA refunds deal with shipping or customer returns. As an FBA seller, you pay money for the service Amazon provides you. So you are entitled to reimbursement if Amazon makes any mistakes.
Protecting your seller account and hard-earned money is essential. Amazon FBA reimburses your money most of the time. However, mistakes are common. Therefore, you need to audit your account and make use of the best-automated tools to get your job done.