Are you selling products on Amazon as an FBA (Fulfillment by Amazon) seller? If so, you’ve likely encountered the issue of damaged goods and having hundreds of dollars stuck in Amazon’s compensation for returns.
According to Amazon’s policy, any damaged merchandise must be reimbursed or replaced. While Amazon is supposed to repay you for damaged merchandise automatically, there are steps you can take to recover some of your losses.
In this article, we will guide you through the process of accessing the necessary reports and filing a case with Amazon to receive compensation. We’ll help you get your money back and recoup any losses incurred from damaged or defective goods.
What is the FBA Lost and Damaged Inventory Reimbursement Policy?
Under the FBA lost and damaged inventory reimbursement policy, Amazon FBA sellers can request compensation for merchandise that has gone missing or has been damaged while under Amazon’s supervision.
To qualify for FBA reimbursement, you need to meet the following criteria:
- Registered in FBA: The item must already be enrolled in the FBA program at the time of loss or damage.
- Compliance with FBA Rules: The product must adhere to all FBA inventory and product requirements.
- Accurate Shipping Plan: The quantities sent should match exactly with what is listed in your shipping plan.
- Not Pending Disposal: Items that are pending disposal or have already been disposed of are not eligible.
- Customer-Induced Damage Excluded: Items damaged or deemed defective by customers cannot be claimed.
- Good Standing Seller Account: Your account must be active and in good standing with Amazon.
Types of Amazon Reimbursement Claims
Where to Find Amazon Reimbursements
Here’s how to find reimbursements in Seller Central:
1.Log into Seller Central and navigate to Reports > Fulfillment.
2.Under the Payments tab find Reimbursements.
Steps to Tracking Amazon Damaged Inventory
To get reimbursed by Amazon for damaged inventory, you will need to take the following steps:
-
- First, you will need to identify the damaged items in your inventory. Make sure to keep track of both the product identifier (ASIN or FNSKU) and the quantity of each damaged item. You can download Fulfillment reports from Amazon. These reports include information about the item, the sale, and the damage. To access these reports, you will need to log into your Amazon seller account. Once you’re logged in, go to the “Reports” section and look for the “Fulfillment” reports. On this page, you will find a lot of different reports related to inventory, sales, payments etc.
- Once you have identified the damaged items, you will need to create a final report of these items, including all relevant information, such as the ASIN/FNSKU, description, and quantity.
- After having the necessary reports, you can file a case with Amazon to receive compensation. The process of filing a case is straightforward and can be done through the Amazon seller account. To file a case, go to the “Help” section of your Amazon seller account and select “Contact Us.” From there, you can select the option for “Report a problem with an order.” In the case of damaged goods, select “Merchandise is damaged.”
- Once Amazon receives the damaged items, they will inspect them and issue a refund for the cost of the items, plus any shipping charges incurred.
Read More: Amazon Return Errors That Qualify For Reimbursement
Amazon’s Reimbursement Policy Changes
Effective October 23, 2024, the reimbursement claim window has been reduced from 18 months to only 60 days. This reduction in the claim window is due to the automation of the reimbursement process by Amazon. The sellers won’t need to make a reimbursement request for the majority of the cases, Amazon will proactively reimburse you for items lost and damaged items in its warehouses.
If you do not receive an automatic reimbursement for your lost or damaged inventory, you will need to file a manual claim. Also, you’ll have to file all removal claims manually.
Reconciling Damaged Inventory
In order to reconcile inventory, you’ll need to run reports for that same time period in your inventory software similar to that of Amazon inventory adjustment report.
For these SKUs, the total quantity of units going out of the seller’s warehouse should match the number of units received by Amazon Warehouse and ensure that Amazon has taken care of the inventory to minimize the returns.
Once your damage claim has been submitted, Amazon will review and determine whether you’re eligible for reimbursement, and they will approve or reject your claim.
What if My Claim is Denied?
If your claim is denied, there are a few things you can do. First, check the appeal process for the reason your claim was denied and see if you can provide additional information.
If you still don’t agree with the decision, you can reach out to Amazon customer service for help.
Tips to Avoid Damaged Inventory Returns
It is important to take proactive steps to prevent future damage claims. Proper packaging and careful handling are the best ways to avoid damage to your inventory.
When packing items for shipment, always use appropriate packing materials. For example, fragile items should be cushioned with bubble wrap or foam peanuts. Heavy items should be securely fastened in a box so they cannot move around and cause damage.
In addition, it is important to label all boxes containing fragile items clearly and prominently. This will help ensure that your packages are handled with care.
It is also important to track your inventory carefully. Keep an accurate and up-to-date Inventory Control System to quickly identify when an item has been damaged or gone missing. This will help you file a claim immediately and get your money back as soon as possible.
Wrapping Up!
Although a simple process, getting your money back for Amazon’s damaged inventory may seem overwhelming and tedious. It’s important to remember that Amazon offers a great return policy. They are willing to work with vendors who have experienced problems with damaged or lost products. We hope this guide has provided some helpful information on getting your money back for Amazon’s damaged inventory.
FAQ’s
If your inventory is damaged or lost while it is in Amazon’s possession, you may be eligible for reimbursement. You can check your seller account for reimbursement reports or contact Amazon Seller Support for assistance.
The timeframe for receiving reimbursement can vary depending on the complexity of the case and Amazon’s review process. In general, it may take several weeks for reimbursement to be processed and reflected in your seller account.
Amazon typically reimburses for damage or loss that occurs while inventory is in their possession, including damage caused during storage, handling, or fulfillment processes.
While Amazon takes measures to protect inventory, sellers can also take steps to prevent damage by ensuring proper packaging, labeling, and shipping of their products to Amazon fulfillment centers.
