Amazon reimbursements are an integral part of managing a successful Amazon business. They represent the money Amazon owes to its sellers for various reasons, such as lost or damaged inventory in Amazon’s warehouse, customer returns that never arrive back at the fulfillment centers, and erroneous FBA fees. Understanding these Amazon reimbursement is crucial for maximizing your profits.
In this blog post, we will delve into the different types of Amazon FBA reimbursement and their eligibility criteria. We’ll guide you through the steps to claim an Amazon reimbursement effectively and discuss common reasons why claims might be denied by Seller Central.
Furthermore, we will share some best practices when submitting a Amazon reimbursement claim to increase your chances of success. Lastly, we’ll explore how automating this process can help streamline operations within your seller central account and ensure you’re not leaving any money on the table.

Types of Amazon Reimbursements

It’s critical for Amazon sellers to be familiar with the various types of reimbursements that can be obtained. Get that money back. 

The first type is FBA inventory reimbursement. If your items are misplaced or harmed in an Amazon storage facility or during transit, you may be eligible for a refund. 

Another type is Refund overages. Sometimes, Amazon messes up refunds. Apply for reimbursement if they owe you more.

Inbound transportation damage also qualifies for reimbursement. Don’t let damaged items go unnoticed.

Other types include product removal order errors and commission errors among others.

Fulfillment Errors occurs in various scenarios such as,

• • Pick & Pack Overcharge: Amazon charging more than their standard rates for picking and packing orders.
  • Mismeasured Items: Amazon incorrectly measuring your product and charging higher fees based on size or weight.
  • Returns Disposal: Amazon disposing returned items without approval instead of putting them back in stock.

Seller Account Errors are Duplicate Charges: Amazon mistakenly charging you twice for services like storage fees.

For efficient claims management, it is advisable to leverage third-party solutions such as KwickMetrics. KwickMetrics offers a real-time reporting system and dashboard that provides insights into eligible reimbursement amounts, complete with expiration timeframes, including those expiring in 7 days, 14 days, and more. Utilizing KwickMetrics enables you to prioritize reimbursement claims based on their impending expiration dates, ensuring that you do not overlook potential refunds within the Amazon ecosystem.

Eligibility for Amazon Reimbursements

If you’re an Amazon seller, it’s crucial to understand the eligibility requirements for Amazon reimbursements. Not every situation qualifies for a reimbursement, and knowing these conditions can save you time and frustration.

Who is Eligible?

All active sellers on Amazon are eligible to file a claim for FBA reimbursement. To be eligible for reimbursement, your Amazon account must have no significant policy violations and not be suspended or blocked due to compliance issues. If your account has been blocked or suspended due to compliance issues, this could influence your qualification.

Type of Transactions

The type of transactions that qualify include lost or damaged inventory in Amazon’s fulfillment centers, incorrect fee charges by Amazon (like weight & dimension errors), and customer returns where the product was not returned but refunded by Amazon. Keep track of all sales transactions to catch any discrepancies quickly.

Fulfillment By Amazon (FBA) Sellers

Sellers using FBA have more opportunities for reimbursements because they deal directly with customers and handle their own shipping logistics. In contrast, Fulfillment By Merchant (FBM) sellers might not be eligible for certain types of reimbursements since they manage their own inventory storage and shipment processes.

Time Frame For Claims

A critical aspect when considering eligibility is the timing of claims submission. Generally speaking, most claims should be filed within 18 months from the date of the issue occurrence according to Amazon’s policies. The claim window policy for the Amazon.com US marketplace has been updated, effective from October 23, 2024. Click here to learn more about the policy changes.

Ineligible Cases

• • Situations involving buyer fraud: These cases typically do not qualify unless there’s clear evidence that supports the seller’s claim against fraudulent activity.
  • Cases outside the 18-month window: If a case falls outside this timeframe, it will likely be denied.
  • Misclassified products: If a product is misclassified, leading to higher fees charged by Amazon, sellers need proof that the classification error lies with Amazon itself rather than a mistake made at the seller’s end.
  • Natural disasters causing loss/damage: These situations fall under the ‘Act Of God’ clause, which means they are usually ineligible unless specific insurance coverage was purchased beforehand.

Remember, understanding these criteria thoroughly increases your chances significantly for successful reimbursement claims, making sure nothing owed gets left behind.