Amazon Reimbursement Claim: Steps to Get Money Owed Back

Brands and resellers selling products on Amazon have access to millions of customers, convenience, and scalability. However, that level of convenience comes with its share of complexity, such as inventory moving across multiple warehouses, automated processing of customer returns, and dynamic fee calculations. 

Consequently, mistakes are bound to happen that may result in you incurring losses.

That’s why Amazon developed the reimbursement claims process to allow businesses to recover funds owed to them due to lost inventory, damaged or destroyed products, customer return discrepancies, and incorrect fees. 

In this article, we will analyze issues eligible for Amazon FBA reimbursements, reasons why Amazon rejects claims, and why you should work with a claims expert to recover lost funds.

TL;DR - How to File a Reimbursement Claim on Amazon

Can’t read the whole guide right now? Here’s a quick snapshot of the Amazon reimbursement claim process:

1. Audit your account to identify discrepancies.

2. Confirm your claim’s eligibility under Amazon’s FBA reimbursement policy.

3. Gather documents supporting your claim, such as shipment IDs, SKUs, FNSKUs, and photos.

4. Open a claim in Seller Central.

5. Monitor your case’s progress and respond promptly to Amazon’s requests for additional information.

6. Confirm receipt of reimbursement in your transaction reports. 

Keep reading to understand why each step is essential to a successful reimbursement claim.

Eligible Issues for Amazon FBA Reimbursements

 Amazon has strict guidelines concerning which issues are eligible for Fulfillment by Amazon (FBA) reimbursement.

Understanding eligibility conditions helps you determine which refunds to claim and how to undertake the process for the best possible outcomes:

• Lost Inventory in Fulfillment Centers: If Amazon loses your inventory after it has been received and checked in at one of its fulfillment centers, you may be eligible for FBA reimbursement. This includes circumstances where your inventory is marked as “lost” in inventory adjustment reports or when Amazon discovers missing units during reconciliation.

• Damaged Inventory: You are eligible for reimbursement if your products become broken, defective, or otherwise unsellable while at Amazon fulfillment centres. However, you should aim to avoid unexpected removal or disposal of FBA inventory, which may happen if the products get flagged as hazardous material. They are then deemed ineligible for reimbursement.

• In-Transit Shipment Discrepancies: You can file a claim if your units are lost or damaged while being transported to an Amazon fulfillment centre or during shipment to your customers. However, you’ll only be eligible if you were using an Amazon-partnered carrier at the time of the damage.

• Customer Return Issues: You are eligible for reimbursement if a buyer requests a refund and you honor it, but they don’t return the product within 45 days.

• Incorrect FBA Fees: Sometimes, Amazon can miscalculate the weight and dimensions of your inventory items. As a result, you may be charged higher fulfillment, referral, and storage fees. If these fees exceed what you should have been charged, you can request a correction and subsequently claim reimbursement.

• Unauthorized Disposal: You qualify for reimbursement if Amazon disposes of your inventory without your approval, provided the disposal was not due to your error, product restrictions, or automated removal settings.

Required Documents for Amazon Claims

Every reimbursement claim requires specific documentation to validate your request. 

Below are common documents Amazon requests when reviewing your reimbursement claim:

• Proof of Ownership: You must produce supplier invoices that have the product name and receipts showing the purchase date and the quantities you ordered. For private label brands and resellers selling products on Amazon, you may need to provide manufacturer agreements. 

• Shipment Documentation: This includes the Amazon Shipment ID in the shipping queue, a signed and stamped Bill of Lading (BOL) confirming receipt of your inventory at Amazon's fulfillment centres, the carrier's tracking ID for small parcels, and packing lists.

• Product Information: Depending on the type of claim, you may be required to provide the Amazon Standard Identification Number (ASIN), Stock Keeping Unit (SKU), Fulfillment Network Stock Keeping Unit (FNSKU), and inventory volume.

• Supporting Evidence: In some instances, you may need to provide photographs of the damaged inventory or shipping boxes. If necessary, you can provide video evidence for higher approval rates.

• Reconciliation Reports: These reports help you identify discrepancies between the inventory you sent and the inventory received at the Amazon fulfillment centre. One example is the Inventory Reconciliation Report, which references the shipment ID, FNSKU, and quantity shipped vs. quantity received. Another is the FBA Customer Returns Report, which highlights the order ID, return reason code, ASIN, and disposition status.

Some types of claims, such as the ones below, require specific documentation: 

• Removal Order Damage: You will need to have the Removal Order ID, Tracking ID, image of the unit you received, and the image of the FNSKU or license plate number label. 

• Missing Item in Removal Order: Provide the Removal Order ID, Tracking ID, the missing FNSKUs, and an image of the shipping label showing the weight of the package.

Step-by-Step Amazon Reimbursement Process

Determining that Amazon owes you money is one thing; getting it credited to your Seller account is another. The reimbursement process includes specific steps, strict timelines, and required documentation, which you must meet at every stage. 

Let’s discuss the reimbursement claim process in detail below:

1. Audit Your Account

Regularly download and review Amazon-generated reports for your Amazon Seller account, especially after the reconciliation period is over. Some of the reports to review include the Inventory Reconciliation Reports and the Customer Return Report. 

Using spreadsheets or auditing software, you can cross-check details such as SKUs, FNSKU, and quantities to identify discrepancies. Examples of differences include finding units marked as lost, damaged, or customer returns, but not receiving any reimbursements.

2. Confirm Eligibility

Ensure that your claim complies with Amazon's FBA reimbursement policy. This will prevent you from undertaking significant administrative work for a non-compliant claim. 

Some of the details to check include: 

• Whether the reconciliation period has passed.

• The unit has not already been reimbursed.

• The issue falls within the claims timeline. 

3. Gather Documentation

 Compile invoices, receipts, and any other relevant paper trail that supports your reimbursement claim. This includes documents showing shipping IDs, the affected ASINs and their quantities, proof of delivery to Amazon (BOL), inventory receipts, and photos of the returned or damaged items.

Label the documents clearly and use a checklist to ensure all relevant files are uploaded, avoiding back-and-forth communication with Amazon officials.

4. Open a Claim in Seller Central

Navigate to Seller Central on your Amazon account. Proceed to follow these steps to begin the claims process.

• Click Help and then select Contact Us.

• Open the Selling on Amazon option.

• Click Fulfillment by Amazon and under the issues category, select FBA Inventory Reimbursement.

• Proceed to clearly explain why you want to be reimbursed. 

You should structure your message in the following manner:

• Identify the issue, for example, lost, damaged, or destroyed inventory.

• Provide shipment and order references.

• State your expected resolution.

• Attach relevant documentation.

5. Monitor Case Progress

Amazon will review your claim and decide whether you are eligible for reimbursement. In some cases, Amazon may request additional documentation or ask for invoice verification.

In such situations, ensure you respond promptly to the request to avoid Amazon marking your case as closed before the issue is resolved.

6. Confirm Reimbursement

If Amazon accepts your reimbursement claim, you should confirm receipt of the funds. The reimbursements will appear either in your Reimbursement Report or in the “Payments” section of your Seller Central under “Transaction View”. 

However, keep in mind that the reimbursement you receive may not be what you had in mind. Amazon can reimburse you partially based on:

• Your average selling price

• Manufacturing cost (if you provided invoices)

• Fair market value

Common Reasons Amazon Rejects Reimbursement Claims

Understanding why Amazon rejects reimbursement claims helps you avoid wasting time and resources on invalid claims. Additionally, it helps you avoid mistakes that could result in a rejected claim or partial refund when you deserve a full one.

Below are the top reasons why Amazon may reject your reimbursement claims:

• Filing Too Early: Some brands and resellers selling on Amazon often get overzealous about reimbursement and file their claims before the reconciliation period ends. As a result, discrepancies on the businesses’ end do not appear in Amazon's inventory records, leading to rejected claims.

• Filing Too Late: Amazon rejects many reimbursement claims for being submitted after the deadline. This is especially true post-2024, when Amazon shortened the claims time limits from 18 months to 60 days after reporting an item damaged or lost in the Inventory Adjustment Report. 

• Incomplete or Missing Documentation: Failure to provide necessary documentation, such as Proof of Delivery (POD), Bill of Lading (BOL), and shipping information (Tracking ID), can result in Amazon rejecting your claim. 

• Invalid Invoices and Incorrect Information: If the invoices you provide do not match your account details or the product specifications provided, Amazon will reject your claim. The same applies to data mismatches such as mismatched SKUs, attaching the wrong ASINs to your claims, and listing incorrect item quantities. 

• Duplicate Claims: If Amazon automatically reimburses you for lost or damaged inventory, any manual claims for the same items will be rejected. 

• Insufficient Evidence: Claiming reimbursement for damaged items without providing photographic evidence that the products are unsellable could result in a rejection.

Work with Experts for Amazon Reimbursement Claims

Managing your reimbursement claims can be tedious, especially when handling a large number of SKUs. 

Hiring an Amazon reimbursement expert increases your chances of successful claims, as they possess the following resources:

• Access to Auditing Tools: Claims experts leverage technologies, including auditing tools and AI, to analyze your reports and identify discrepancies, such as misplaced or damaged inventory and overcharged fees. 

• Experience Navigating Amazon Policies: An expert will be conversant with the ongoing policy shifts within the Amazon ecosystem, including recent changes to the claims time limits. Such experience will help your business remain compliant by ensuring you do not file incorrect or excessive claims. Additionally, the experts may help you appeal Amazon policy violations to avoid getting your account suspended.

• Time Savings: Your Amazon reimbursement expert will handle the entire claims process, including reviewing Amazon FBA inventory discrepancies, filing your claims, and conducting follow-ups. This frees up a lot of your time, allowing you to focus on tasks that will grow your business, such as streamlining production and logistics. 

Looking for expert help on your Amazon reimbursement claims?

Seller Candy provides a seamless, done-for-you solution for brands and resellers selling on Amazon struggling with reimbursement claims. We are official Amazon service providers, which speaks to our expertise and experience handling reimbursement claims for our clients. 

Additionally, we keep the Amazon reimbursement claim process transparent, so that you can track every step directly on your Seller dashboard.

Book a free consultation to learn about our Amazon reimbursement process.

Frequently Asked Questions (FAQs)

Here are answers to common questions about Amazon reimbursement claims:

How Long Does Amazon Reimbursement Claim Approval Take?

The approval timeline for an Amazon reimbursement claim depends on the type of claim and the quality of the documentation. Simple claims such as FBA-related issues can be resolved in 5-15 business days. 

However, more complex problems that may require investigations for lost or damaged inventory can take up to 30 days or longer to resolve.

How Far Back Can I Claim Amazon Reimbursements?

You should submit your Amazon FBA reimbursement claims within 60 days of the day you recorded the event in your inventory report. 

This is a significant change from the 18-month filing period that existed before 2024, so be more vigilant when auditing your inventory and filing claims. 

What Is the Minimum Amount for an Amazon Reimbursement Claim?

Amazon does not have an official minimum reimbursement claim amount. 

However, Amazon advises brands and resellers to aggregate small claims rather than filing multiple low-value requests to reduce the associated workload and turnaround time.

How Do I Check Amazon Reimbursement Status? 

Here’s a simple way to check your Amazon reimbursement status:

• Log in to your Amazon Seller Central account.

• Go to the “Reports” section and select “Payments”.

• Click “Reimbursements,” choose a date range, and then “Request Download”.

Can Amazon Reverse a Previously Approved Reimbursement?

Yes. Amazon can reverse an approved reimbursement claim through the Reimbursement Clawback process. This happens if:

• Your lost items are later found and returned to your inventory.

• A customer returns an item after reimbursement.

• The initial reimbursement was issued based on incorrect information.

• There was a system error that, for example, mistakenly approved duplicate claims.

Conclusion

Many brands and resellers selling on Amazon overlook the reimbursement claims process when considering how to recover profits. However, successful reimbursement claims can give you back several hundred or thousands of dollars, depending on your sales volumes.

The main obstacle to successful refunds is the complex reimbursement process, which is time-consuming and confusing for many brands and resellers selling on Amazon. The solution? Partner with an Amazon reimbursement claims expert.

At Seller Candy, we offer hands-free operations management, where our experts handle the whole reimbursement claims process so you can focus on your core business functions. 

Our services also include proactive account health monitoring to identify and address issues that could result in Amazon denying your claims or suspending your seller account.

Schedule a free consultation to start reviewing your reimbursement reports.