Amazon FBA Refunds? Is That a Thing?

Amazon FBA is a great way for you to outsource inventory management, order fulfillment, and customer returns so you can focus on sourcing new products and marketing your brand. But did you know that when Amazon makes mistakes handling your inventory and customer returns, Amazon FBA refunds are owed to you?

If you’re wondering what Amazon FBA refunds are, this blog is for you. Because Amazon FBA refunds aren’t always issued automatically—in most cases you have to identify potential Amazon FBA refunds and file claims to recover them.

If you think this is a minor accounting issue, think again. Amazon FBA refunds can represent anywhere from 1% to 3% of your annual revenues. Say you made $1 million in revenues last year: your Amazon FBA refunds could add up to anywhere from $10,000 to $30,000. Hardly a minor accounting error.

So to help you find out if you missing out on Amazon FBA refunds, let’s consider:

• What is eligible for Amazon FBA refunds
• How to file Amazon FBA refund claims
• How to take the pain out of getting your Amazon FBA refunds

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What is Eligible for Amazon FBA Refunds? 

Products registered with FBA are eligible for Amazon FBA refunds when anything in your inventory is:

• Lost 
• Damaged
• Improperly returned 
• Destroyed or disposed 
• Overcharged due to incorrect product dimensions

The maximum payment for a single qualified FBA refund is $5,000, so if one of your products is worth more than $5,000, it’s a good idea to purchase third-party insurance to cover any excess not covered by Amazon FBA refunds. 

A product is eligible for Amazon FBA refunds if it:

• Complies with all Amazon FBA product and inventory requirements
• Is included in your shipping plan listing the exact items and quantities in your inventory sent to Amazon
• Is not in a canceled or deleted status, and is not pending disposal (either by your request or Amazon’s)
• Is not defective
• Is not damaged by the customer

In addition, your account must be in normal status during the time you file claims for Amazon FBA refunds as well as during the time the claim is reviewed and/or under appeal.

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How to File Amazon FBA Refunds Claims

There’s a different claim process for different types of Amazon FBA refunds.

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Fulfillment Center Operations Claims

Fulfillment Center Operations Claims are submitted for Amazon FBA refunds due to lost or damaged items at the fulfillment center. To ensure your claim is not rejected, first check the following reports:

• Inventory Adjustments. Confirm the date and adjustment code of the loss or damage to your item(s).
• Manage FBA Inventory. Establish that the lost or damaged item(s) was not either:

•  found or restored to your inventory in a sellable condition or 
• in a damaged condition for which Amazon was not at fault (e.g., the item was defective).

• Reimbursements. Search by FNSKU and date to filter the results to ensure you haven’t already received Amazon FBA refunds for the lost or damaged item.

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If this all checks out and you believe you are owed Amazon FBA refunds, provide the following information in your claim:

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• For lost items, the FNSKU of the lost item
• For damaged items, the transaction ID (found in the Inventory Adjustments report)

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To submit claims for lost or damaged items, open a case with Seller Support; alternatively, you can use the tools listed on the Fulfillment Center operations claim help page.

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Shipment to Amazon Claim

This type of claim is for items that are lost or damaged during transit to Amazon’s fulfillment centers. To determine if there are items eligible for Amazon FBA refunds, first:

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• Confirm that the shipment’s contents and the number of units are the same as in the shipping plan you created.
• Check the Contents tab in your shipping plan to determine discrepancies between your shipping plan and what the fulfillment center received. 
• Check your Reimbursements report to see if you have already received Amazon FBA refunds for the lost or damaged item(s) in question.

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Once you are sure you are owed Amazon FBA refunds, to submit this type of claim, you must provide:

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• Shipment ID
• Proof of ownership
• Tracking information

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To open a claim for units damaged in transit, contact Seller Support.

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Customer Returns Claim

Customer returns and refunds represent a significant source of issues that qualify for Amazon FBA refunds, which is not surprising in light of Amazon’s highly favorable customer return policy. Any return that isn’t properly paid out to you, or that a customer either didn’t return or returned damaged, or accepted late is eligible for an Amazon FBA refund. However, you can only file a claim if Amazon has refunded or replaced the item on behalf of your Seller account. In addition, you must file a claim no sooner than 60 days (the period Amazon allows to accept returns) and no later than 18 months after the customer's refund or replacement.

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Removal Claims

If Amazon or a carrier used by Amazon damages your items while removing your inventory from a fulfillment center to your returns shipping address, you can file a claim for Amazon FBA refunds. You must submit the claim no sooner than 14 days from the last confirmed movement of the removal shipment. For items damaged in transit, submit a claim as soon as you receive them. Claims submitted later than 18 months from the date the item was removed from the Amazon fulfillment center are rejected for Amazon FBA refunds. 

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FBA Overcharge Claims

Amazon charges FBA sellers for storing inventory. These charges are based on a product’s size and weight. If Amazon’s listed dimensions for a product are larger than the manufacturers (it happens more often than you might think), you are being overcharged. 

Compare the manufacturer’s listed product dimensions to those listed by Amazon. If Amazon associates higher costs for products with incorrect dimensions, you are owed Amazon FBA refunds. Claims must be filed within 30 days.

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Take the Pain Out of Getting Amazon FBA Refunds

If you think it is a lot of time-consuming and tedious work to claim your Amazon FBA refunds, you’re not wrong. It’s why so many FBA sellers prefer to rely on Getida to get their Amazon FBA refunds.

‍Getida software analyzes the previous 18 months of your seller transactions for possible Amazon FBA refunds. If there are sufficient possible Amazon FBA refunds, and with your permission, an experienced team of former Amazon employees submit claims to the appropriate departments and follow up on your claims to ensure success. 

Here’s the best part: you aren’t charged for any of this preliminary work. You are only charged for a percentage of your approved Amazon FBA refunds. And the first $400 in Amazon FBA refunds are free.

Sign up for a Getida review. There’s no obligation. It couldn’t be any easier to get your Amazon FBA refunds. 

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