How to Get Reimbursed when Amazon Loses Your FBA Inventory

During your journey selling items via Amazon FBA, you’re going to be hit with some lost inventory challenges. Luckily, we’ve made this Amazon FBA reimbursement guide, that you can use to assist with claiming back what you’re owed.

Most of the time, Amazon FBA is really simple, but there are times where more work is needed. As a seller, you can’t afford a shipment discrepency, as lost stock is lost profits.

It’s a common hiccup that sellers like you and me run into – lost inbound FBA inventory. There you are, happily shipping your goods to Amazon, waiting for that ‘cha-ching’ moment, but instead, you’re met with a ghost town. No sight of your inventory, leaving you wondering, “Where did my stuff go?”

.This article is your roadmap, your guide to finding that lost treasure – or, more accurately, getting reimbursed for it. We’ll arm you with the right tools and knowledge, so the next time your inventory pulls a vanishing act, you’ll know exactly what to do. Let’s roll up our sleeves and get into it, shall we?

What is an FBA Reimbursement Claim?

In the event that your package suffers damage, gets lost, or is misplaced during transit or while at an Amazon Fulfillment Center (FC), you may be entitled to file a reimbursement claim. The type of claim you can file and the corresponding process can differ depending on the stage in the fulfillment process where the item was damaged or lost.

Let’s look at the various types of Amazon reimbursement claims:

  1. In-Transit to Amazon: This covers items that get damaged or lost en route to the FCs.
  2. Fulfillment Center Operations: This applies to items that get damaged or lost within Amazon’s FCs or any facility run by Amazon after the items have been received.
  3. FBA Customer Returns: This involves items that were damaged or lost after being returned by FBA customers.
  4. Removals: This pertains to items that are damaged or lost by Amazon or their carrier during the process of removing a seller’s inventory from an Amazon warehouse to the seller’s return address.

To qualify for a replacement or reimbursement, the following criteria must be met:

Amazon make this criteria to protect themselves from fraud. You can’t send in a box of tissues and advise them that you want refunding £10,000 for lost playstation consoles.

What is Amazon’s FBA Inventory Reimbursement Policy

What exactly is Amazon’s responsibility over your FBA inventory? Well, once your goods are in Amazon’s hands, they’re, well, in Amazon’s hands. The e-commerce giant takes on the duty of storing, packing, and shipping your products to customers.

But with great power comes great responsibility, right? What happens if your inventory gets lost or damaged in their care? That’s where Amazon’s FBA Inventory Reimbursement Policy comes into play. Think of it as your safety net. If your products get lost or damaged while under Amazon’s care, they typically cover the cost. That’s the good part about this.

I don’t understand how they get lost, as all items are labelled and tracked rather excessively. We will never know, so I’ve started to tune out to the thoughts that run around my mind. As a seller, you need to know your rights, your protections, and the process to get your money back if things go awry. In the world of FBA, knowledge truly is power.

How can I identify Lost Inventory?

Let’s say you’ve sent off your products, and they seem to have fallen into a black hole. Poof! Gone. But how do you confirm that your inventory is truly lost and not just delayed or misplaced? It’s going to take a little bit of investigation work on your side.

First things first, you’ll need to log into your Amazon Seller Central account. This is your dashboard, your control room. It’s here that you can track your FBA inventory. Look for ‘Manage FBA Inventory’ under the ‘Inventory’ tab. This is essentially your ‘shelf’ showing you what’s in stock.

So, what are the red flags you need to watch out for? Well, if your inventory has been ‘in transit’ for a longer duration than expected, that’s a big one. Or if your stock levels don’t match your records, that’s another.

Confirming if inventory is indeed lost is like playing detective. Here’s a simple three-step guide to do just that:

  1. Check your shipping records and compare them with your Amazon Seller Central inventory.
  2. If you find discrepancies, identify the shipments that have been marked ‘in transit’ for too long.
  3. Then, open each shipment and check the ‘Reconciliation’ tab. If it’s past the delivery date and there’s no record of the shipment being received, it’s time to raise the alarm.

Remember, in the world of FBA, vigilance pays off. If your inventory pulls a disappearing act, these steps will help you confirm it and take action. So let’s take action.

Initiating the Reimbursement Process on Amazon FBA

Alright, now that we’ve confirmed the vanishing act of your inventory, it’s time to roll up your sleeves and get your money back. Ready? Let’s dive in.

Creating a case in Amazon Seller Central is your first stop. Here’s a step-by-step guide to walk you through:

  1. Head over to ‘Help’ at the top right corner.
  2. Click on ‘Get support’ and then choose ‘Selling on Amazon.’
  3. Now, click on ‘Fulfillment by Amazon’ followed by ‘Something else.’
  4. Finally, click on ‘Contact Us,’ and voila! You’ve just set the wheels in motion for your reimbursement process.

Now, it’s time to put on your lawyer hat. You need to provide all the necessary information and documents. This includes your shipping and tracking details, the list of missing items, and any proof of delivery. The more information, the better. It’s all about making a solid case.

“But when will I get my money?” I hear you ask. Patience is key, but you’ll get it back! The reimbursement process typically takes about 45 days from the time you open a case. It might feel like a century, but remember, the wheels are in motion.

Stay on top of things, keep an eye on the status, and before you know it, you’ll have your reimbursement. Your patience and persistence will pay off, quite literally!

Potential Challenges in the Reimbursement Process

Even with a roadmap, the journey to reimbursement can sometimes feel like a roller coaster ride. It’s not uncommon to hit a few bumps along the way. Let’s talk about the potential challenges you might face.

One common hiccup is that Amazon might not agree with your reimbursement claim. Maybe they can’t verify your shipment, or they claim to have received fewer items. Or, they might reimburse less than what you think your items are worth.

Another challenge is the waiting game. Yes, it’s frustrating when the process takes longer than expected. But remember, the Amazon machine handles millions of transactions daily. Delays can happen.

So, how do you navigate these challenges?

For discrepancies in the reimbursement claim, be prepared to provide more evidence. Keep all your shipping records and receipts. Make sure to track your inventory accurately. The more detailed your records, the stronger your case will be.

If you’ve been reading my blogs regarding Problems with FBA, you know that keeping evidence is your ticket to retrieving your money back. Always keep receipts.

For delays, it’s all about patience and persistence. Keep checking the status of your case in Seller Central. If it’s taking too long, don’t hesitate to follow up. A gentle nudge can sometimes move things along.

Remember, challenges are part of the process. Don’t let them deter you. With the right mindset and a few smart strategies, you can overcome them and secure your reimbursement.

How to Prevent Lost Inbound Inventory at Amazon FBA Fulfilment Centers

Alright, we’ve talked about the cure, but what about prevention? After all, wouldn’t it be great if we could avoid this whole lost inventory debacle in the first place?

Let’s look at some preventive measures you can take.

Firstly, let’s talk about packaging and shipping. Think of your products as precious items. You can’t afford for the insides of these contents to even get creased.

Apply this principle to your inventory. Use sturdy boxes, cushioning materials, and seal everything securely. And remember, each box should have a proper shipment label. If there are any print lines going through the label or it’s quite feint, those are going to be variables that can cause this shipment to go missing.

I’ve had this myself, I saw a label and thought “oh, that’ll do… I’m tired”. Only for the parcel to go missing. What makes this double annoying, is that I saw the issue and didn’t correct it.

Next up is insurance. Think of it as your safety parachute. If things go wrong, it can save you from a financial free fall. It’s especially crucial for high-value items. Yes, it’s an added cost, but it can be a real lifesaver in case of lost or damaged inventory.

Amazon FBA Tracking Details UPS

I don’t insure everything, as I must admit it doesn’t often go wrong. However, my higher value items will always be insured.

Lastly, maintaining accurate and up-to-date inventory records is crucial. It’s like having a map of your treasure. Keep track of what you’ve sent, what’s been received, and what’s sold. Regular checks can help you spot issues early and take timely action. You can cross-compare this with what Amazon have received and then find out if it’s all been delivered successfully.

Remember, prevention is better than cure. By following these best practices, you can reduce the chances of your inventory going MIA in the first place. Happy selling!

Successful Reimbursements from Amazon FBA

When I was writing this article, I had one item going round and round my mind. Headphones. It was my first batch of lost items, and I won’t forget that any time soon.

Firstly, let me tell you about the time I shipped a batch of high-end headphones to Amazon. It was a large shipment, and to my dismay, a portion of it seemed to have vanished into thin air. After checking and re-checking my records, I initiated the reimbursement process.

I provided all the necessary documentation, including shipping records and the list of missing items. After a couple of weeks, Amazon agreed with my claim and reimbursed the full amount. What worked here? Thorough record-keeping and swift action.

On another occasion, I faced a delay in the reimbursement process for a lost shipment of books. It was nearing the 45-day mark, and I had yet to hear back from Amazon. Rather than waiting passively, I followed up on my case.

I sent a polite but firm message inquiring about the delay. To my relief, they responded quickly, and I received my reimbursement shortly after. The lesson? Persistence pays off.

From these experiences, it’s clear that understanding Amazon’s reimbursement process, keeping detailed records, and being proactive are key to successfully navigating lost inbound FBA inventory issues. Remember, you’re not alone in this, and with the right approach, you can overcome these challenges.

Tips for Successful Reimbursements on Amazon FBA

Before I sign this article off, I thought it would be incredibly useful to provide you with a list of tips, that you can use to increase your chances of getting reimbursed.

  1. Be Respectable with Amazon Customer Services: They know you’re frustrated that something has gone wrong. It’s not their fault, and if you treat them with respect you’ll have better chances of receiving your money back.
  2. Be Specific in Your Claim: When initiating a claim, be as specific as possible. Provide all the relevant details including shipment ID, tracking number, date of shipment, list of missing items, and their respective costs.
  3. Attach Evidence: Support your claim with evidence. This could be shipping receipts, tracking details, delivery confirmations, or any other relevant documents that could support your claim.
  4. Stay Professional: Always maintain a professional tone in your communication with Amazon. Politeness and patience can go a long way in getting your issue resolved.
  5. Use Amazon’s Templates: Amazon provides templates for reporting issues. Use these to ensure you’re providing all the necessary information and in the correct format.
  6. Monitor Your Case: Keep an eye on your case in the Amazon Seller Central. This will help you stay informed about any updates or additional requirements.
  7. Follow Up: Don’t hesitate to follow up if you don’t get a response within the expected timeline. A gentle reminder can sometimes speed up the process.
  8. Review the Reimbursement: Once Amazon has processed the reimbursement, review it carefully to ensure it matches the value of your lost inventory. If there’s a discrepancy, don’t hesitate to raise it with Amazon.

Remember, the key to successful reimbursements lies in being proactive, diligent, and informed. Keep these tips in mind, and you’ll be well-equipped to handle any lost inventory issues that come your way.

Conclusion

Alright, we’ve covered quite a bit of ground, haven’t we? From understanding Amazon’s responsibility over your FBA inventory and their reimbursement policy, to identifying lost inventory and initiating the reimbursement process.

We’ve also touched on potential challenges you might face, preventive measures, and of course, shared some of my own experiences with successful reimbursements.

At the core of this topic: understanding and navigating the FBA inventory reimbursement process is crucial. Yes, it can be a bit daunting, but with the right knowledge and tools, you don’t have to stomach the losses!

To all you FBA sellers out there dealing with lost inbound inventory, remember, you’re not alone. This is a bump in the road, not the end of it. Stay informed, be vigilant, and most importantly, don’t lose heart. You’ve got this!

If you want to read this policy in depth, you can read it and make sure you full understand the rules.

Author
Tom P
Hi, I'm Tom Paddock! An Amazon & eBay seller, who has helped over 10,000 people start their own online business. I provide cutting-edge techniques to help sellers with Online Arbitrage, Retail Arbitrage & Wholesale on Amazon.

Leave a Comment

Learn Retail Arbitrage Website Logo

Our Mission:

To continue providing industry-leading content, to help Online Sellers increase their profitability, in the UK and United States.