Fulfillment by Amazon, also known as Amazon FBA is the program sellers use to ship goods to Amazon warehouses, where Amazon’s employees will then take care of order fulfillment. Because Amazon takes care of order fulfillment, returns, and exchanges, issues can happen that you might not be aware of. You need to track your inventory for abnormalities and submit refund claims to Amazon for any issues.

In this guide, we show you how to find Amazon FBA refund reports and how to easily manage the reimbursement process.

What are Amazon FBA refund reports?

Amazon FBA refund reports show you your customer refunds from a given time period. Within Amazon Seller Central, there are several useful reports across the following categories:

• Payments
• Brand Analytics
• Business Reports
• Fulfillment
• Advertising Reports
• Return Reports
• Tax Document Library

The refund report is part of the Payments category. 

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According to Statista, Amazon’s ecommerce market share will grow to 50% before the end of 2021. In June 2021 alone, the ecommerce giant received over 2.7 billion web visits.

These numbers indicate that Amazon is one of the best platforms for sellers to reach loads of potential customers. However, being a Fulfillment by Amazon (FBA) seller isn’t always smooth sailing.

Sometimes, Amazon owes you FBA fee reimbursements and pays you the wrong amount or not at all. When this happens several times in a year, it can put a significant dent in your annual profit. To help you avoid such issues when selling on Amazon, here are seven things you must know about FBA inventory reimbursements:

1. Amazon destroys unsellable inventory

Amazon currently ships around 1.6 million packages a day, but that doesn’t mean the company successfully sells every item in its warehouse. According to a 2020 Washington Post article, Amazon warehouse employees in France and Scotland reported destroying hundreds of thousands of unsold inventory.

Amazon didn’t destroy these items because they were all defective or expired. FBA sellers store their wares in Amazon fulfillment centers to facilitate quick shipping. Some sellers stop paying storage fees for their items after they fail to make sales. Since Amazon needs to make room for new inventory, the company may destroy or donate unsold items abandoned by FBA sellers.

Other items that Amazon destroys include products rendered unsellable due to damage during shipping or storage. That means if you pay your FBA seller fees and Amazon accidentally destroys your items, you can claim FBA inventory reimbursement.

The same thing applies if a buyer returns your product with damages that render the item unsellable.

2. Amazon allows some customers to keep low-cost returns

Many shoppers have reported buying items from Amazon, initiating returns, and getting refunds without returning their initial purchase. While this can happen to any buyer, it’s most common among regular Amazon shoppers who have purchased items under $25.

Such a buyer will get two items for the price of one, and Amazon’s reputation as a trustworthy platform will remain untarnished. However, unless the seller can get an FBA inventory reimbursement, they will lose revenue from the unreturned product.

3. Inventory can get lost in an Amazon warehouse

There are currently around 2 million active sellers on Amazon. 73% of US Amazon sellers use FBA, and each FBA seller can store hundreds of items at Amazon warehouses. Amazon can have over 350 million items in storage at any given time.

With that many items going in and out of Amazon warehouses, inventory can easily get lost due to human error, unscrupulous employees, and other factors. If you are an FBA seller and your items go missing in an Amazon warehouse, you shouldn’t have to bear the cost of the loss.

After noticing the missing items in your FBA dashboard, report the loss to Amazon. If Amazon verifies your claim, they will replace the lost items or pay you the value of the lost product. However, Amazon will not refund your FBA and Selling Fees.

4. Amazon employees processing returns might not place the products in your inventory

Apparently, working in an Amazon warehouse is highly stressful. Stressed employees are more likely to make mistakes, which is why cases of Amazon employees sending returned items to the wrong seller are not uncommon.

If a buyer returns your product and Amazon doesn’t place the item in your inventory, you can’t resell it, and that will affect your earnings. Should Amazon add the item to the inventory of one of your competitors, the mistake could give your competitor an advantage.

Track your returned packages to verify that Amazon added them to your inventory. If Amazon correctly adds a returned item to your inventory, you should receive an FBA reimbursement that includes the 20% restocking fee paid by the buyer.

5. FBA inventory reimbursements are supposed to be processed by Amazon automatically

FBA sellers have to pay fees to sell items on Amazon. The fees cover Amazon’s handling of inventory, shipping, customer service, returns, and other tasks on behalf of the seller. If Amazon collects an FBA fee without fulfilling its duties, the seller should receive an FBA fee reimbursement.

For returned products, FBA sellers can receive reimbursements that cover:

• Restocking fees
• Inaccurate order refunds
• Cost of an unreturned item after a customer receives a replacement
• Missing order credits

The most common errors that lead to an FBA inventory reimbursement are products damaged or lost by Amazon warehouse employees, shippers, or customers. FBA reimbursements for such issues should be automatic, but this is not always the case.

If an FBA reimbursement isn’t automatic, you may not know that Amazon owes you money. Sellers with a high volume of sales on Amazon can lose hundreds to thousands of dollars yearly to such oversights. Protect your income by looking out for FBA fee discrepancies and claiming reimbursements manually.

6. Not all destroyed or lost inventory gets automatically reimbursed

Amazon isn’t omnipotent, and it has many users, so it’s understandable if it occasionally fails to reimburse an FBA seller automatically for lost or damaged inventory. If you have a lot of inventory and do not keep a close eye on your FBA dashboard, you may not know that Amazon owes you money.

Discover if Amazon owes you an FBA inventory reimbursement by searching these reports for discrepancies:

• Manage orders
• Inventory adjustments
• Inventory event detail
• Removal order detail
• Received inventory
• Daily inventory reports

The inventory adjustments report will contain your damaged inventory that Amazon has not reimbursed. Damaged unreimbursed items will go under Damaged at Amazon Fulfillment Center. If you find a damaged item in the report, and it is not under Transferred to Holding Account, Amazon owes you reimbursement for that item.

You can find inventory adjustments and other reports in your FBA seller dashboard. After identifying an issue, you must wait 30 days after the issue occurred to file a claim. The 30 days is sufficient time for Amazon to notice and rectify the issue on their end. If Amazon doesn’t initiate the reimbursement after 30 days, submit your claim to Amazon’s Seller Central support.

7. You can get inventory reimbursements without having to file claims yourself

You have to follow certain rules when applying for an FBA inventory reimbursement. Otherwise, Amazon will ignore your claim. Some of these rules include:

• One Issue Per Claim: Do not state multiple issue types in a claim. If you must list multiple items in a claim, all the items must have the same issue.
• State Your Actions: Your claim must specify the actions you have taken to have the issue resolved. For example, you can state that you’ve identified the items missing from your inventory and removed the ones already reimbursed by Amazon. If possible, include a CSV file that contains the contested items.
• State Duration: Your claim must mention how long you have waited for Amazon to resolve the issue automatically.

As you can see, filing a claim for FBA reimbursement yourself is possible but tedious. Also, there are no guarantees that you will get your desired results. Increase the chances of getting your refund from Amazon by hiring an FBA reimbursement service provider.

At Refunds Manager, we have nine years of experience helping FBA sellers protect their profits. We have successfully helped over 9,000 US Amazon sellers, and we look forward to helping you with your FBA inventory reimbursement.

Our experience provides us with everything we need to vet and submit claims that get the most favorable responses from Amazon. Even better, we don’t charge any upfront or monthly fees. You only have to pay us after your reimbursement claim is successful.

Sign up with us today so that we can get to work reconciling your account and getting you every penny that Amazon owes you.

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What if you knew of a way to raise your disbursement payments? You would probably jump on the opportunity.

Sometimes, a product doesn’t generate the sales you expected. Over time, they pile up, clutter your entire inventory and cost money in storage fees.

Yet,t so many sellers leave dead inventory at the Amazon warehouses. Here we’re covering everything you need to know about removal orders–from detecting the right inventory to getting the merchandise back.

We’ll also be detailing a brand new case that our service can detect.

[Read more…]

There are over 2.8 million active sellers on Amazon. With such high numbers, many things can go wrong on Amazon. Someone can hijack your listing. Your product can suddenly drop off in sales after a year of five figure months.

But one of the worst, and most common, things that can go wrong on Amazon is not receiving your full profits.

You get paid for every sale minus the Amazon fees. What if the Amazon fees are wrong? What if a customer didn’t return an item and you got charged for it?

That’s less money that you’re getting paid from your Amazon FBA Seller account, and it happens all of the time to FBA businesses of all sizes. The higher your revenue, the more you have to lose from any Amazon errors.

Fortunately, an Amazon reimbursement service can protect your bottom line by monitoring your account and opening up claims with Amazon. There are a few options for these types of companies, so you need to know what to look for.

Here’s how to find the best Amazon reimbursement service:

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If you’re searching for “Amazon refund software,” then most likely you’re tired of trying to handle the FBA reimbursements process yourself. 

Amazon sellers have reported that hunting for Amazon FBA refunds takes them about 8 hours per month or about 5 hours every two weeks. Maybe it takes you even longer?

However you slice it, that’s at least a full work day devoted to finding errors in your Amazon FBA account and then requesting reimbursement from Amazon’s Seller Central support team if the issue hasn’t been resolved within 30 days. 

That’s a ton of time! 

Especially when you’re focused on sourcing new products or marketing your existing products, you can’t afford to lose that much time every month. 

What is Amazon refund software?

Amazon refund software is designed to review and submit claims to Amazon Seller Central for you, in a completely automated way so that you don’t have to spend your time on this process.

There is typically no human service involved. When utilized without a human service element, refund software might be submit low quality, automated claims. We’ll learn more about this later on and explore what you can do to fix this issue. 

Why Amazon sellers use refund software

Time is money, right?
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Dealing with Amazon when you’ve been overcharged FBA fees can be a nightmare. Sometimes, everything goes smoothly. But often times, the support representative denies your claim over and over, or simply won’t get back to you. It’s absolutely maddening.

We’ve talked with dozens of Amazon sellers who’ve experienced the same thing. Today on the blog, we’re detailing some of the common examples of FBA fee overcharges and then giving you exact steps for what you can do about it.

Examples of Amazon FBA overcharged fees

Let’s take a look at some common examples of FBA fees being overcharged by Amazon. All of these represent Amazon FBA fee errors that happen frequently.

Charged the wrong FBA fulfillment fees based on size or weight

One of the most costly Amazon fee mistakes is this: the pick & pack fee, also known as the FBA fulfillment fee. This is not the commission on your sale, but what Amazon charges you to fulfill the order, including shipping costs.

It’s one of the most expensive errors because if Amazon is charging you a larger fulfillment fee than what the size and weight of your item should be, then this can be wrong for months, even years. This error will apply to every single sale that you have. One seller experienced a loss of $35,000 due to this issue. When Amazon is off by $1 for each sale of an item for over a year, it’s easy to understand how this problem could wrack up that high of a reimbursement claim.

Repeated issues with fulfillment fee errors

In the above case example, the seller only encountered one fulfillment fee error with one product. However, other sellers have had this issue happen repeatedly. As soon as one ASIN’s fulfillment fee is corrected (and the reimbursement is issued), another problem is discovered with a different ASIN. Amazon FBA fee issues and mistakes can eat into your profits.
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So, you’ve heard that Amazon makes mistakes when they process FBA orders? Maybe you’ve found an error and you want to know how to get your money back quickly, or you just want to learn how to monitor your FBA account and safeguard your profits.

In this post, we’ll be covering how you can get more FBA refunds…from the common claims to the unexpected ones.

Go ahead and keep reading, or if you prefer video content, then watch our recent Facebook live below:

1. Look for common Amazon errors

Most of the reimbursements we get for our customers are simply an issue of volume. Amazon is processing millions of orders a day, so something is bound to go wrong. The trouble is, you don’t want it to be your money that’s on the line. Hundreds of dollars add up to thousands, and so on.
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79% of Amazon sellers use FBA for some or all of their sales, and it’s no surprise. Amazon FBA gives you the opportunity to create a profitable ecommerce business without worrying about order fulfillment, product warehousing, website development or customer returns.

But of course, you run the business yourself: product research and sourcing, paid and organic marketing and more.

Do you also handle FBA reimbursements yourself?

It might be time to consider whether outsourcing Amazon FBA reimbursements can get you more money back.

When should you outsource the reimbursement process? Here are 4 tell tale signs.
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Are you in the dark about how much money Amazon owes you? Unfortunately, the answer is probably yes.

Most sellers struggle to monitor their FBA accounts for mistakes and accidental losses. That’s understandable. You’re too busy sourcing new products, testing new marketing techniques, or continually optimizing your listings.

But what’s the point of working so hard to make money if you don’t know how much you’re losing?

Think of FBA mistakes as leaks.

You’re pouring money into your FBA account with new sales, and a small percentage of that is leaking out. The more that goes in, the more that leaks out due to Amazon errors that are bound to happen.

Handling the process on your own is a hassle. What you need instead is an FBA reimbursement service. Here’s what to look for when signing up.
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