What You Need to Know About The FBA Inventory Reimbursement


If you want to process a Fulfillment by Amazon or FBA Inventory Reimbursement, then you might have a hard time. But you might wonder what an does this even mean. If you sell on Amazon with FBA and if in any case the product got destroyed or lost due to Amazon errors, then Amazon owes you money in the form of reimbursements. This simply means that Amazon takes all the responsibility when your inventory is damaged by their partner carrier, or maybe at the Amazon fulfillment center, or sometimes during the process of delivering it to the customer. When this happens, you are assured that Amazon will replace the item, and they will also reimburse you the number of proceeds supposedly for that item.

The Reimbursement Process

During the Reimbursement, Amazon will give you back the amount of money that you should have received when the item was purchased by someone else. But before that, there are factors that will be determined. This would include your sales history and the average FBA selling price on Amazon. This will also include the sales history of your brand.If for example, the information that Amazon has about your product is not enough to calculate the reimbursement, there is a default value of reimbursement that they use. For example, if you requested a reevaluation of the reimbursement that you received, Amazon will be requesting additional information from your like a receipt or an invoice.

You must take note that the reimbursement amount of any item will not exceed $5000. If the item is more than that value, a third party insurance is needed for the process.

What If The Lost Inventory is Found? If for example Amazon has already reimbursed you for the lost inventory and the item is found or maybe the reimbursement has an error, there will be a reimbursement reversal which will usually be applied on the credit card that is on your account.

What is Covered by the Reimbursement Policy of Amazon?

Amazon is responsible if the items are damaged or missing while in an Amazon fulfillment center for 30 days. If the Amazon partner carrier or distributors lost or damaged the items. But remember that small parcels that are shipped using Amazon carriers are lost or damaged because of inadequate packaging, this will not be covered. You always have to follow the prep, packaging, and shipment requirements before you ship to an Amazon fulfillment center to avoid any problems like this.

What is Not Covered by Amazon Reimbursement Policy?

Any FBA prohibited products will not be covered by this policy. Some of this products may include illegal products in the United States, alcoholic beverages, sky or floating lanterns, car tires, gift certificates, and so much more. The defective products will not be covered as well if in any case that it got lost or damaged.

When you are applying for FBA Inventory Reimbursement, it is best that you have the knowledge about the process, and how the amount is being calculated. Also, make sure to do your research, you can visit Amazon online and learn about their rules and policies about the reimbursement process.

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