How to Handle Unfair Amazon Reimbursements For Damaged or Lost Inventory

How to Handle Unfair Amazon Reimbursements For Damaged or Lost Inventory

When selling products on Handmade at Amazon and choosing to do FBA, there may be instances where your inventory gets lost or damaged. Amazon has a reimbursement policy in place to either replace the lost/damaged item or reimburse you for its value. However, in some cases, Amazon may not follow their own reimbursement rules, resulting in unfair reimbursements. This article discusses how to handle such situations and ensure you receive the reimbursement you deserve.

Understanding Amazon's Reimbursement Policy: Amazon's reimbursement policy states that they will either replace the lost/damaged item or reimburse you for its value. The reimbursement amount is typically calculated based on factors such as your sales history, the average selling price on Amazon, and other undisclosed factors. However, in reality, Amazon often deviates from these guidelines and provides lower reimbursements than expected.

Identifying Unfair Reimbursements: To determine if you have received an unfair reimbursement, you can conduct some research. First, search for the product's ASIN on Amazon and find the current FBA offers. Calculate the average selling price based on the lowest FBA prices. Then, use the FBA revenue calculator to input the average selling price and calculate the fees and margin impact. Compare these numbers with the reimbursement amount you received. If there is a significant difference, you may have received an unfair reimbursement.

Steps to Get a Fair Reimbursement: If you believe you have received an unfair reimbursement, you can take the following steps to rectify the situation:

  1. Open a ticket with Amazon: Log in to your Seller Central account, click on "Help," and choose the option to open a ticket about selling on Amazon. Describe the issue as an unfair reimbursement and provide the necessary information.
  2. Include calculations and evidence: In the ticket, explain the correct reimbursement amount based on your sales history and the current FBA average selling price. Present the math clearly and attach a screenshot of the FBA calculator calculation if available.
  3. Request additional reimbursement: Politely ask Amazon to approve an additional reimbursement based on the difference between the correct reimbursement amount and the amount you received.
  4. Follow up and escalate if necessary: If you receive a reply that doesn't address your concerns, reopen the case and request it to be escalated to a supervisor. Be firm but respectful in your communication, emphasizing that you have provided all the necessary information and calculations.

Potential Obstacles and Tips:

  • Amazon may ask for a receipt or invoice, which is not required according to their policy. You can politely state that the reimbursement amount should be based on sales history and current prices.
  • If the difference in reimbursement amount is small, it may not be worth the time and effort to dispute it.
  • Use email communication to have a written record of the conversation and avoid interruptions.
  • If Amazon declines your request or provides a form letter response, reopen the case and request escalation to a supervisor. Use the word "escalate" to convey the seriousness of the matter.

Receiving fair reimbursements for lost or damaged inventory on Amazon is important for sellers. By conducting research, providing calculations, and following the appropriate steps, you can increase your chances of obtaining a fair reimbursement. Remember to be persistent, respectful, and provide clear evidence to support your case.

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How to Handle Unfair Amazon Reimbursements For Damaged or Lost Inventory

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