If you want to grow as an Amazon seller, you’ll need to stay ahead of the curve, and that means understanding FBA reimbursements.
Managing your inventory can be daunting, but Amazon offers excellent assistance through FBA services. Like a logistics coordinator, Amazon FBA makes it easy to keep track of your inventory and your shipping procedures.
Though the FBA system often works well, sometimes things go wrong. Even a well-oiled machine occasionally fails and, unsurprisingly, long supply chains and multiple markets add strain. Despite Amazon’s strong record of accuracy, errors inevitably occur, but where does this leave you as the seller?
When your products are lost, damaged, or shipping is charged incorrectly, you are owed an FBA reimbursement from Amazon. It’s well worth your time to explore how FBA reimbursements can ensure cash gets back into your pocket.
It’s essential to discern whether a product is eligible for FBA reimbursement. Remember that the product must be registered with FBA, meaning the exact quantity and items particular to your shipping plan.
It is also essential that your FBA account is in good standing at the time you file your claim and that your FBA reimbursement claim is not filed as a reaction to product defects or damage by a customer. You also cannot file for an FBA reimbursement when your product is pending disposal. The product must also be up to FBA inventory and product requirements.
Only when the above criteria are met, will Amazon cover the cost of damaged or lost products. Amazon limits reimbursement for a single item to $5,000, so if you offer products that exceed this amount it is wise to acquire insurance from a third party.
Usually, Amazon automatically covers the cost of any damages or loss your products face while in its care. You can check to see if Amazon has delivered a reimbursement to you by looking under “Payments” in the report in seller central. You can search by “FBA reimbursement” or “Balance Adjustment” while you are in the transaction view. In transaction view, you will be able to see any FBA reimbursements that Amazon has given you.
As an enormous company with millions of sellers, Amazon understandably encounters occasional errors. The estimate is that these missed reimbursements account for a total of 1% to 3% of sellers’ sales overall. Turnover varies from business to business, but it goes without saying that this can be a significant loss.
When it comes to FBA reimbursements, there are a total of four different types to search for:
Checking your shipping reports for discrepancies is essential to learning the point at which damage or loss occurred.
By staying on top of these reports, you’ll be able to better assess when your product went astray. This will save you time as errors in your FBA reimbursement claims will prevent you from receiving payment. You’ll then be left to resubmit reports, wasting time and potentially money.
As a seller, you’ll be wise to keep an eye on the claim window for each relevant department. If you miss the deadline to submit an FBA reimbursement claim, you’ll be left out of pocket needlessly.
You might be starting to think that pursuing FBA reimbursements sounds arduous and time-consuming. In order to benefit from FBA reimbursements, you need to sift through a significant amount of inventory numbers, seller info, and shipping data.
However, this attention to detail can definitely be worth the effort. Consider that a business with a $30,000 annual turnover could be losing approximately $300-$900 every year due to FBA discrepancies. By committing just a few hours of time, this money could be back in the pocket of that business.
If taking the time to file FBA reimbursement claims seems unappealing, there are other options.
Some businesses opt to hire a Virtual Assistant to process the data. The downside of this is that the assistant needs to be trained, and trusted to handle the particulars of your products and business.
Another option is to enlist the services of an authorized FBA auditor such as GETIDA to find and pursue your FBA reimbursement claims. With a combination of specialized software and an experienced team, GETIDA handles the FBA process for your business. This means they locate discrepancies and take care of any back-and-forth communication with Amazon, ensuring you can focus on all the other aspects of running your business.
There’s no cost for this analysis. With your approval, a GETIDA team of former Amazon FBA reimbursement employees presents and follows up on your claims to the appropriate Amazon departments. Also at no charge. You only pay a percentage of whatever claims are successful. Which could be considerable.
It’s also free to sign up for GETIDA. Even better, you can get $400 in free FBA Reimbursements to try them out.
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