An Amazon FBA refund is given to a third-party seller when the Fulfillment by Amazon service is found to be in the wrong for something like an overcharged storage fee or a customer return error.
You may or may not know this, but our FBA reimbursement software covers 19 possible cases. That’s a lot of different ways that Amazon can get things wrong and cost you money. The reason that Amazon makes mistakes is because of the massive amount of sales taking place on their platform every minute of every day. The odds are that mistakes will happen.
The fact that we cover 19 different error types certainly helps customers feel secure in knowing that their account is being watched over. But there is a question we get asked a lot, primarily out of curiosity, and this is: Which cases are the most common?
Sellers want to know which case types will likely result in real money being handed back to them. It’s true, not all Amazon reimbursement cases are created equal. Here are the three issues that pop up the most often and account for a large amount of refunds.
Introduction to Amazon FBA refunds
Amazon FBA refunds are given from Amazon FBA to a third-party seller when an error or oversight is discovered. The most common refunds are due to customer return issues and to inventory being lost or damaged.
Think about it. Between all the products in all the categories, the return rate on Amazon is only 5.5%, but when you consider the daily volume, that’s still a lot of returns. With that volume comes more errors.
Similarly, there are over 600 million products for sale on Amazon US, and a large percentage of these products are fulfilled using FBA. Products can get damaged when they’re shipped to an FBA warehouse, in an FBA warehouse, or when they’re shipped from an FBA warehouse to a customer.
Amazon FBA charges sellers to sell on its platform, but it doesn’t intend to overcharge them or make them pay for any of its errors. There are systems in place that typically automatically refund a seller if something goes wrong (if an item gets damaged by an employee, for example).
However, Amazon doesn’t catch all of its own mistakes, which is why most sellers choose to monitor and claim additional Amazon FBA refunds.
Most common Amazon FBA refunds
Let’s take a look at the three most common instances.