This blog post is a guest post contributed by our partner, Getida.

Amazon FBA Reimbursements are a normal part of the Amazon FBA selling landscape. Yet sellers often don't know they exist, or they don't know how to manage the Amazon claims process. Commonly, sellers look to solution providers to fulfill this overwhelming task.

Big money can mean big mistakes, and when you're selling on the world's largest online marketplace, unfortunately, those two things are a somewhat regular occurrence.

But, there are ways to mitigate some of these mistakes in your FBA business to ensure you are holding onto as much of your capital as possible.

This article will outline what an FBA reimbursement claim is and how it can benefit your Amazon business throughout your selling journey.

What are Amazon FBA Reimbursements and Amazon Claims?

An Amazon FBA reimbursement is a discrepancy made by Amazon on your Amazon selling account. The main discrepancy types are:

  • Damaged
  • Lost
  • Disposed
  • Destroyed
  • Overcharges in FBA Fees

The Amazon FBA business model means that sellers pay Amazon fees to store, ship, and manage their FBA inventory.

An Amazon FBA reimbursement claim is a claim you file with Amazon to seek the recovery of funds Amazon owes you from discrepancies on your account. Knowing how massive an operation Amazon is, it's easy to see that many issues can occur between fulfillment centers and while your inventory is being stored at these locations.

Requesting to recover your funds in an Amazon claim is a normal part of the FBA reimbursement process. Sellers can file Amazon claims for as far back as 18 months on their Amazon FBA selling account.

If sellers don't proactively manage Amazon claims, they could very well be leaving their own money behind. Amazon FBA reimbursement claims are ultimately the seller's responsibility.

What's the Best Way to File An Amazon Claim?

Sellers have a few options to manage their Amazon claims and Amazon FBA reimbursements.

The first step in the Amazon claim process is to complete a full Amazon audit. The purpose of an Amazon audit is to find discrepancies as listed above. It's best to go back the full 18 months on an account, which Amazon allows. You want to review as many discrepancies as possible to recover the maximum funds.

Sellers can perform their own Amazon audits and claims or look to solution providers to manage and submit their claims on their behalf.

Ways to Manage FAB Reimbursements:

  • Self Managing
  • Virtual Assistants
  • Solution Providers

Here's How to File An Amazon FBA Reimbursement Claim Yourself:

The first step to filing your Amazon FBA reimbursement claims is downloading your Amazon Seller Central reports. You'll want to use a spreadsheet like Excel or Google Sheets to reconcile your inventory to the fulfillment reports. Go to your Amazon Seller Central Account.

  1. Click Reports - Fulfillment.
  2. Click on Inventory Adjustments on the right-hand side.
  3. Under Inventory Adjustments, select generate a report. Be sure to specify the category: lost, damaged, destroyed, disposed.
  4. Input the data and select the dates.
  5. Click Generate Report.

Once you've gathered this data, the next step will be to submit the Amazon claim with Amazon. The whole process from start to finish is a bit tedious, especially if you have many SKUs. Remember that Amazon may require specific documentation to support your claim, so have all necessary information ready.

When self-managing Amazon FBA reimbursements, sellers can be inundated with information and, unfortunately, not correctly submit their Amazon claims to Amazon.

Virtual assistants may lack experience in working in the Amazon FBA platform. Therefore, they may not recover the maximum Amazon FBA reimbursements sellers are eligible to receive. In both cases, self-managing reimbursements or hiring a virtual assistant can mean money owed to the seller can be left behind.

Amazon FBA solution providers work on the seller's behalf to recover reimbursements. But, not every solution provider is equal, and many have different ways of navigating the reimbursement process, from the Amazon audit to filing Amazon claims.

Things to Look Out for with Amazon FBA Reimbursement Services

The utmost importance in your Amazon FBA selling trajectory is your Amazon seller account. Without your Amazon seller account in good standing, you don't have a viable FBA business. This means that a provider being a part of the ASPN, as listed below, may be an asset.

Look out for these experience indicators:

  • How Long has the service or solution been in operation?
  • Is the service or solution a part of the Amazon Service Provider Network?
  • What are the fees the provider charges?
  • Is the provider transparent with their process?
  • How effectively and efficiently are your concerns addressed?
  • Does the provider perform manual or automated Amazon claims?
  • What types of audits do they perform?

Each of these questions should help you determine which provider is best suited for your business. Manual claims are often preferred as there is less room for error and a better likelihood of maximum reimbursement.

Each provider will also charge differently, so make sure the fee structure suits your needs. Keep in mind that without maximum recovery, the rate is much less critical.

Final Thoughts

Coming into the busiest quarter of the year, Amazon FBA sellers should be doing all they can to increase cash flow. Unfortunately, Inventory and logistics are expected to remain challenging throughout 2021 and into 2022.

Increased cash flow will benefit sellers during these peak times and possibly help them better manage the issues that may arise from hefty Amazon inventory restrictions.

It's never too late to perform a detailed Amazon audit and submit Amazon claims to ensure sellers receive the maximum amount of FBA reimbursements they are eligible to receive.

Are Amazon FBA reimbursements a standard operating procedure in your business?
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