Selling on Amazon can be rewarding, but it’s not without its challenges. Mistakes like lost inventory, damaged products, or incorrect fee charges are surprisingly common, and when these occur, Amazon owes you money. Filing a reimbursement claim for Amazon ensures you get what’s rightfully yours. However, calculating the reimbursement amount can feel overwhelming without a clear process or expert help.
In this guide, we’ll walk you through how to calculate your reimbursement amount, what to look for, and how Amazon reimbursement services can help you recover every dollar Amazon owes you.
Why does Amazon owe you reimbursements?
Amazon offers reimbursements to FBA sellers when they make errors in managing inventory, customer returns, or fees. These errors can cost sellers thousands of dollars annually if left unclaimed. Common reasons Amazon might owe you a reimbursement include:
- Lost or damaged inventory: Amazon may lose or damage your stock in their warehouses.
- Customer return errors: Amazon refunds the customer but doesn’t get the product back. The returned item is damaged and no longer sellable.
- Overcharged FBA fees: Incorrect product dimensions or weight might lead to higher fees than you should be paying.
- Destroyed inventory: Amazon may destroy inventory without your consent or incorrectly classify inventory for destruction.
- Mishandled removals: If you’ve requested removals and Amazon loses or mishandles your inventory, you may be entitled to compensation.
Steps to calculate your Amazon reimbursement amount
Step 1: Pull relevant reports from Amazon
The first step is to access data from your Seller Central account to identify where errors have occurred.
Key reports include:
- Inventory Adjustments Report: Tracks lost, damaged, or misplaced inventory.
- Returns Report: Shows customer returns and whether they were processed correctly.
- FBA Fee Preview Report: Details the fees Amazon charges for your products.
- Removal Orders Report: Tracks inventory you requested to be removed.
Navigate to Reports > Fulfillment in Seller Central to download these reports.
Step 2: Identify discrepancies
Once you have the reports, analyze them for inconsistencies. Here’s what to look for:
- Lost inventory: Compare the inventory shipped to Amazon with what’s currently available. Any missing items might qualify for reimbursement.
- Damaged items: Check for inventory marked as damaged in Amazon’s system and confirm whether it has been reimbursed.
- Unreturned refunds: Match refunded orders with actual returned items. If a customer was refunded but didn’t return the product, you’re owed reimbursement.
- Overcharged fees: Compare Amazon’s FBA fees (based on product size and weight) with the actual dimensions and weight of your product. Any overcharges should be refunded.
Step 3: Calculate the reimbursement amount
Amazon calculates reimbursements based on the Fair Market Value (FMV) of your product—not the retail price. The FMV is determined by the average selling price of the product in recent weeks.
Use this formula:
Reimbursement Amount = FMV – (Amazon Referral Fee + FBA Fees)
For example:
Retail price: $40
FMV: $35 (based on recent sales data)
Referral fee: $6
FBA fees: $7
Reimbursement amount:
$35 – ($6 + $7) = $22
Step 4: File your claim
Once you’ve calculated the reimbursement amount, file a claim through Seller Central:
- Go to Help > Get Support > Selling on Amazon.
- Open a case and provide all relevant details, including the order IDs, product information, and calculated reimbursement amount.
- Attach supporting documentation, such as reports or invoices.
- Amazon’s team will review your claim, and if approved, they’ll issue the reimbursement.
Challenges in calculating and filing claims
While the steps may seem simple, the reality is far more complicated. Sellers often face these challenges:
- Time-consuming process: Manually pulling reports, analyzing data, and filing claims can take hours, especially for sellers with a large catalog.
- Short filing deadlines: Amazon has strict time limits for filing claims—usually 18 months for inventory discrepancies and 90 days for returns. Missing these deadlines means losing money.
- Complex policies: Understanding Amazon’s reimbursement policies and calculating FMV correctly can be confusing.
- Tracking ongoing errors: Errors may continue to occur, requiring constant monitoring.
Why it’s important to act quickly
Amazon enforces strict deadlines for filing claims, so waiting too long could result in lost money. For example:
- Claims for lost or damaged inventory must be filed within 18 months of the issue.
- Claims for unreturned refunds must be filed within 90 days of the refund.
Failing to act quickly means Amazon keeps the money, so it’s essential to regularly review your account for errors.
