Implications of Recent FBA Reimbursement Policy Changes for Sellers

What changed

Recently Amazon announced a few changes to their FBA reimbursement policies that, if not understood properly, could have sellers leaving money on the table.

First, starting November 1, 2024, Amazon will provide automatic reimbursements for items lost in their fulfillment centers, initiating this process as soon as a loss is reported. This update promises a smoother and more proactive reimbursement process, reducing the workload for sellers and potentially accelerating the compensation for losses incurred.

However, sellers should not assume that Amazon will catch and reimburse all loses. Amazon's reimbursements report should be checked regularly and manual claims filed for anything that was missed. Which brings us to the next change. Amazon also announced a significant update, effective October 23, 2024, that shrinks the reimbursement window for sellers from a generous 18 months down to a strict 60 days. This calls for an accelerated claims submission process. After the adjustment, sellers must be more attentive and act promptly to recover potential financial losses arising from lost or damaged inventory.

Submissions for claims concerning items lost in transit also face new protocols, requiring filing between 15 to 75 days from the shipment creation date. This ensures time for delivery processing but again stresses the importance of adhering to strict deadlines. Similarly, any removal claims related to FBA inventory must be filed within 60 days after the items have been delivered back to the seller. Removal claims will not be automatically reimbursed by Amazon, sellers will need to continue to file these manually.

How These Changes Affect Sellers

The upcoming modifications in Amazon's reimbursement policies will mean some operational adjustments for sellers. Starting November 1, 2024, the enhanced process wherein Amazon proactively issues reimbursements for lost FBA items will alleviate some administrative duties. However, the simultaneous shortening of the eligibility window for filing claims from 18 months to a mere 60 days places additional pressure on sellers to stay on top of their inventory and any potential issues swiftly.

These changes to Amazon's reimbursement policies require sellers to adjust workflows around reimbursement filing to both monitor Amazon's new automated process and file any manual claims within the shortened window. Sellers who can adapt with these shortened timelines and proactively engage in the claims process will likely experience minimal financial loss. Sellers who have not submitted claims for inventory lost in the last 18 months must act swiftly to ensure they don’t forfeit those potential reimbursements.

Tools and Resources for Sellers

If you are unsure how to claim your reimbursement for lost inventory there are several industry-leading tools are available to assist FBA sellers in managing their Amazon businesses and maximizing reimbursement opportunities. For instance, platforms like Jungle Scout, GETIDA, Refunds Manager and Helium 10's Refund Genie, all help identify and claim reimbursements for inventory lost or damaged and simplify the reimbursement claims process. These tools not only streamline the reimbursement process but also provide valuable insights into the overall health of your inventory and sales metrics.

Additionally, the regular review of crucial Seller Central reports, such as Inventory Adjustments and FBA Customer Returns reports, remains essential. These reports allow sellers to monitor for discrepancies actively and pinpoint potential reimbursement opportunities.

Using these tools and resources, coupled with vigilant oversight and claims practices, can greatly improve a seller's ability to recover losses incurred within Amazon's FBA ecosystem. Put a plan in place today to ensure you are claiming the money owed to you and not leaving money on the table.