Do you suspect that Amazon owes you some money or replacement products because of FBA errors? Find out how to get reimbursed before it starts to affect your bottom line.
With millions of products arriving and being shipped out of Amazon’s warehouses, it isn’t a surprise that there are instances where products are lost or damaged. For sellers who use Amazon’s fulfillment service, called Fulfilled by Amazon or FBA, staying on top of product inventory that is handled by Amazon is an important part of staying profitable. According to some experts, FBA errors can add up to between 1% and 3% discrepancy.
Reasons for an Amazon FBA Error
There are any number of reasons that Amazon might owe you money because of an FBA error. There are also a number of places within the fulfillment process that the error can occur. Your product may become missing or damaged when being shipped to Amazon, at their fulfillment center itself, in the FBA customer returns process, or in removals. According to Amazon, if a seller’s product that is part of their FBA service is lost or damaged at their facilities or by their carriers, then Amazon will replace the item or reimburse the seller up to $5,000. It is up to the seller to request the refund, though.
Digging In to Find Discrepancies
It can take a lot of attention to detail to make sure that all of your products are accounted for if you use the FBA service. The first step is to cross-reference the data sets provided by Amazon to find any discrepancies. This process takes a keen eye and close attention to detail. Depending on the size of your business, this may also take a lot of time. Once you have located discrepancies, you need to determine if they are eligible for reimbursement. Items that are eligible must satisfy all of the following conditions:
- Registered in FBA when it was lost or damaged
- In compliance with FBA product requirements, restrictions, and inventory requirements
- The exact items and number of items matches your shipping plan
- They were not disposed of or pending disposal at your request
- They are not defective
- They were not damaged by the customer
- Your account is in normal status
If you have found discrepancies and the items in question satisfy all of the above conditions, you can then request a replacement or reimbursement from Amazon. The process to file your request depends on where along the FBA system that the loss or damage occurred.
Once Amazon validates your request, they will then replace the item or reimburse you for it. They do reserve the right to reverse the reimbursement in the future if they find it was done in error.
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