If you're an Amazon FBA seller, understanding the Amazon FBA reimbursement process is vital for your business. You need to know how to get reimbursed for any products that Amazon loses while in their care. Fortunately, this process is relatively easy to follow!
This article will discuss what the reimbursement process entails and offer tips to make sure you get every penny back you deserve from Amazon.
What is Amazon's Reimbursement Policy?
The Amazon Reimbursement Policy is the process by which Amazon FBA sellers can request a reimbursement for products that have gone missing or have been damaged while in Amazon's possession.
To be eligible for reimbursement, you must meet specific criteria. First, your items must have been lost or damaged while in Amazon's care. Second, you must provide Amazon with a valid FBA reimbursement report.
Finally, Amazon will only reimburse sellers for products that are not replaceable. This means that if Amazon can find a replacement product for the lost or damaged one, you will not be reimbursed.
Now that you know what the Amazon Reimbursement Policy is, let's have a quick discussion about the ways in which Amazon can lose your products.
Why Does Amazon Lose Product Shipments?
How does Amazon lose your brand's products? There are several ways. Some product loss is Amazon's fault, while other times, it's the customer's fault. Amazon may have lost the product because of damage due to poor handling, or Amazon might misplace your shipment while it's in their possession.
Other times, Amazon loses a product because one of its employees made an error during processing. For example, Amazon warehouse workers are responsible for scanning all packages before putting them onto trucks that take shipments to Amazon Prime customers.
Sometimes Amazon workers mishandle or misplace your packages, which is why Amazon has an error reimbursement policy for warehouse workers.
If Amazon loses one of your shipments due to any of the reasons stated above, then you are eligible for an FBA inventory reimbursement through the Amazon Reimbursement Process! Let's take a more detailed look into determining eligibility for Amazon FBA reimbursement based on the cause of loss.
Amazon Loses Items During Inbound Shipping
Products can get lost during Amazon's inbound shipping process. This can happen when Amazon orders products from a supplier and ships those products directly to an Amazon warehouse.
If Amazon receives an order from a supplier that is missing items, or if the items are damaged, then Amazon will contact the supplier for a refund. The Amazon Reimbursement Policy states that Amazon will not reimburse its sellers for product loss during inbound shipping unless the seller is at fault.
Amazon Loses Items During Outbound Shipping
Sellers should also be aware of the Amazon warehouse worker error reimbursement policy. This policy covers product loss during shipping to the customer, which can happen for a few reasons. Amazon's workers may misplace your package, or they may scan the wrong product barcode when putting your products onto shipping trucks.
Amazon Loses Items After Receiving a Shipment at a Warehouse
If Amazon receives your products at one of its warehouses, but the items are missing when Amazon unpacks them, then you may be eligible for an FBA reimbursement.
This is because Amazon has another warehouse worker error reimbursement policy covering this situation. Most of the time, Amazon Associates lose items during the "sorting" and "picking" processes.
If an employee accidentally returns your item to the wrong location in the warehouse, it can take weeks or months to discover the error!
Thus, if an Amazon employee makes a mistake while processing or packing your shipment into boxes before sending them to Amazon Prime customers, then Amazon will reimburse you for product loss.
When Can You Get FBA Inventory Reimbursements?
So, to recap, here's what you can get FBA inventory reimbursements for. Amazon will reimburse Amazon FBA Sellers for product loss during Amazon's inbound shipping process unless the seller is actually at fault.
Amazon also has a warehouse worker error reimbursement policy covering Amazon Associates who mishandle or misplace your products while processing them.
So if Amazon loses one of your shipments due to any of these reasons, you can file for reimbursement through Amazon's Reimbursement Process.
In addition, Amazon will also reimburse sellers for product loss during outbound shipping unless the seller is at fault.
Finally, if Amazon loses your products after receiving them at one of its warehouses, then you may be eligible for an inventory reimbursement as well!
Now that we know what you can get FBA inventory reimbursements for let's discuss how Amazon Sellers qualify for the Amazon Reimbursement Policy.
Who is Eligible for Amazon Reimbursement?
Not every seller is eligible to receive Amazon FBA reimbursement. This list will help you determine whether you can receive a refund from Amazon:
- When damaged or lost, sellers must use the Amazon FBA program to fulfill the order.
- Only products that meet Amazon requirements and restrictions are eligible for Amazon reimbursement.
- Additionally, the products must meet the FBA inventory requirements.
- Sellers must input the correct shipping plan that explains your inventory's items and qualities.
- You cannot receive a reimbursement for items pending disposal because of a Seller request.
- You cannot request Amazon discard your item and then request a reimbursement.
- If Amazon has the right to dispose of an item (because it expires, for example), then you cannot receive a reimbursement for that item.
- Only non-defective items can receive an Amazon reimbursement.
- If a customer damages your item and returns it, it's not eligible for reimbursement.
- Finally, your Amazon Seller Central account must have a regular status to file an Amazon reimbursement claim.
Those are all ways you could be eligible to receive Amazon FBA reimbursement.
Now, we'll discuss the Amazon Reimbursement Process in detail, so you know what to do if Amazon loses one of your products.
The Amazon FBA Reimbursement Process
If Amazon has lost any of your products, you will need to fill out an inventory report.
This report will ask you to provide the following information:
- Your Amazon Seller ID
- The ASIN of each product that was lost
- The quantity of each product that was lost
- The Reason for the loss (Damaged, Missing, or Destroyed)
Once you have filled out the Amazon inventory report, Amazon will review it and determine whether you are eligible for reimbursement.
- If Amazon has lost your item due to an accident or error made by one of their Associates, they will process the Amazon FBA seller's claim for that product loss.
- If Amazon denies your claim, then you can appeal that decision.
Amazon has a particular Amazon Reimbursement Process, and it's essential to follow all the steps to ensure that you get reimbursed for your product loss.
Hopefully, now you know what to do if Amazon ever loses one of your products.
Remember, always read Amazon's instructions carefully and fill out Amazon's FBA reimbursement report to ensure that you receive reimbursement.
If Amazon has lost one of your products, you will be able to file an Amazon FBA seller reimbursement claim and get reimbursed for the loss.
Where Can You Find The Reimbursement Report Amazon?
If Amazon has lost your inventory, you will be able to find the Amazon reimbursement report by going to Reports > Inventory. Sellers refer to this document as the reimbursement report Amazon.
Click on reimbursement as a subcategory and select Amazon FBA Seller Claims from the drop-down menu.
Then click run report, and the reimbursement report Amazon should show up as a PDF.
However, this isn't the only place where you can find products that qualify for reimbursement. Some customer returns also qualify since there are times where customers do not ship the items back to an Amazon warehouse, which effectively loses your products.
What Should Sellers Know About Customer Return Reimbursements
Many Amazon sellers are unaware that they can receive inventory reimbursements for customer returns.
The product must have been returned and met Amazon’s requirements to be reimbursed.
The product also has to fall within Amazon's Product Returns window.
If any of those conditions aren't satisfied, you cannot file for a reimbursement.
Now we'll go over Amazon's Product Returns window and what it means for Amazon sellers. Yes, you must keep up-to-date on the reimbursements that Amazon owes you, or else you can lose out on refunds!
What is Amazon's Product Returns Window?
The Amazon Product Returns window is the length of time that a seller has to request a reimbursement for a missing or damaged product.
If the seller hasn't reported a product within this window, Amazon will not process the reimbursement.
For Amazon FBA sellers, the product Returns window is 90 days for products that have been lost or damaged.
The Product Returns window begins when Amazon marks the product as unavailable for sale.
This window means that you have a total of three months to report the product as lost or damaged and request reimbursement.
The Amazon Product Returns window is critical for Amazon sellers to be aware of.
Sellers must keep up with the Amazon FBA reimbursement process and file for a claim as soon as possible once Amazon marks its inventory as unavailable.
But, this isn't the only thing you should know about the Amazon FBA reimbursement process. There's also a bit to know about the product measurement or Cubiscan process. Without knowing this information, Amazon may fail to honor a reimbursement request.
What Happens When Amazon Associates Incorrectly Measures Your Products?
The Amazon FBA reimbursement process works differently when Amazon Associates mismeasure your inventory.
When Amazon associates mismeasure one of your products, then you will be able to file for an Amazon Seller Reimbursement Report through the inventory> Manage Inventory page on Seller Central.
Be sure to use the same product ID as what Amazon associates used when measuring the product.
You can also use Amazon's Cubiscan reimbursement process if you have physical evidence that supports your claim.
If Amazon has lost one of your products, Amazon will reimburse you for the loss. However, if Amazon Associates incorrectly measure your products, Amazon may not compensate you for the loss.
How to get Inventory Reimbursement for Your Products
Now you know how to find a reimbursement report and why it's vital to understand what to do when Amazon loses or damages an item.
It's time to learn the Amazon FBA reimbursement process, and more specifically, how to get an inventory reimbursement for your products.
In the past, Amazon Sellers could submit a reimbursement claim from the Contact Us page of their Seller Central account. However, the process is very different today for Amazon Sellers.
Amazon is good about reimbursing you for items that it notices you've lost most of the time. However, sometimes missing or damaged items go under the radar. In this instance, you must file a reimbursement claim.
There are several ways to file reimbursement claims, and how you make your claim depends on where in the fulfillment process Amazon loses your product.
Therefore, the process of filing a reimbursement claim is different when an item is missing during shipment versus when it's lost due to fulfillment center operations. That's why you should review both your reimbursement report and your FBA customer returns report since they have different claims processes!
After all, you don't want any missing or damaged items to fall through the cracks! If Amazon or a buyer misplaced or damaged your product, they should pay for the inventory, not you.
This Amazon Seller Central page explains the different processes for making claims depending on the fulfillment process. Check out these rules on claims for Shipments to Amazon, fulfillment center operation claims, FBA customer return claims, and removal claims.
If you don't follow the exact rules and processes for the various claims, Amazon will decline your claim. Therefore, you must get the process and the requirements right the first time! Some software and services can even help you out.
Analytics Can Help Manage Amazon Seller Reimbursements
There are several tools available to help you locate all the Amazon Seller reimbursements you qualify for, which is helpful for busy FBA Sellers! DataHawk offers a full suite of analytics tools to automate your business, from advertising, to finance, to SEO optimization.
You should also pay attention to your inventory reports to ensure Amazon reimburses you for all Amazon FBA reimbursements!
Amazon Seller reimbursements are a vital part of doing business on Amazon. As an Amazon FBA Seller, you should know Amazon's reimbursement process and what to do when receiving a reimbursement for a lost or damaged item.
Software like DataHawk can automate the reimbursement process for you, making it easier to receive the reimbursements that Amazon owes.
Remember to review your reimbursement report regularly, as well as the FBA customer returns report, to ensure Amazon appropriately reimburses you for all lost or damaged items.
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