Amazon provides reimbursement opportunities for FBA sellers when errors occur in managing inventory, customer returns, or other processes. While the system is meant to protect sellers, getting a reimbursement approved isn’t always easy. Amazon has specific guidelines under its Amazon reimbursement policy, and if your request doesn’t align with those rules, it may be denied.
In this blog, we’ll explore the most common reasons why Amazon denies reimbursement requests and how to avoid them. Whether you’re filing for FBA returns reimbursement or lost inventory, understanding these reasons will help you increase your chances of success.
Lack of sufficient documentation
One of the most common reasons reimbursement requests are denied is the failure to provide adequate proof to support the claim. Amazon requires clear documentation to verify that a mistake occurred.
Examples:
- Missing proof of shipment when claiming lost inventory.
- Failure to provide evidence that a product was damaged or mishandled by Amazon.
- Lack of order or transaction IDs when requesting reimbursement for returns.
How to avoid this issue:
- Keep all shipment records, invoices, and order details organized.
- Attach screenshots of relevant reports (e.g., Inventory Adjustments Report, Returns Report) when submitting a claim.
- Clearly explain the issue in your request to make it easier for Amazon’s team to verify your claim.
Claim doesn’t meet Amazon’s time limits
Amazon enforces strict deadlines for filing reimbursement claims, and missing these timelines is a common reason for denial.
Examples of time limits:
- Lost or damaged inventory claims: Must be filed within 18 months of the issue.
- FBA returns reimbursement claims: Must be filed within 90 days of the return or refund.
- If you try to file a claim outside of these windows, Amazon will deny it.
How to avoid this issue:
- Regularly review your reports to identify discrepancies early.
- Set reminders to check for missing inventory or return issues within the allowed timeframe.
- Consider using tools or services that monitor your account and flag reimbursement opportunities in real-time.
The reimbursement doesn’t qualify under Amazon’s policy
Amazon’s reimbursement policy is specific about what qualifies for compensation. If your claim falls outside these guidelines, it will be denied.
Examples:
- Claiming reimbursement for inventory lost during transit by your carrier (Amazon only takes responsibility once inventory reaches their fulfillment centers).
- Requesting reimbursement for customer-caused damage (e.g., a customer damages an item after using it).
- Filing for reimbursement when the product was damaged by improper packaging that didn’t meet Amazon’s requirements.
How to avoid this issue:
- Familiarize yourself with Amazon’s policies for reimbursements. For example:
- Amazon will reimburse you for lost inventory if it was in their warehouse or under their control.
- Reimbursements for returns only apply to items lost or damaged during the return process.
- Before filing a claim, ensure that the issue aligns with Amazon’s guidelines.
Submitting duplicate claims
Submitting the same reimbursement request more than once for the same issue is a common mistake that leads to automatic denial.
Example:
- Filing multiple claims for a lost inventory item without checking if the first request was resolved.
How to avoid this issue:
- Track your submitted claims to ensure you don’t file duplicates.
- Check your case log in Seller Central to confirm whether the issue has already been addressed.
- Wait for Amazon’s response to a claim before filing another one for the same issue.
Failure to provide accurate details
Amazon’s reimbursement process requires precise information. If the details in your claim are incomplete or don’t match their records, your request will be denied.
Examples:
- Incorrect SKU, ASIN, or order ID provided in the claim.
- Claiming the wrong quantity of lost or damaged inventory.
- Misreporting the Fair Market Value (FMV) of the product.
How to avoid this issue:
- Double-check all details before submitting your claim, including SKUs, order IDs, and product information.
- Use Amazon reports, like the Inventory Adjustments Report or Returns Report, to ensure your data aligns with Amazon’s records.
Issues with FBA returns reimbursement
Amazon’s FBA returns reimbursement policy is specific about when sellers are entitled to compensation. Many claims are denied because the seller misunderstands the policy or fails to meet its requirements.
Examples:
- Filing for reimbursement before giving the customer 45 days to return the item.
- Claiming reimbursement for an item that was successfully returned but listed as unsellable. Amazon may not reimburse you unless the damage occurred during the return process.
How to avoid this issue:
- Wait 45 days after a refund is issued to ensure the customer has time to return the product.
- Check the condition of returned items. If they are damaged and unsellable, verify whether the damage occurred due to Amazon or the customer.
Inventory discrepancies were already reimbursed
Amazon sometimes automatically reimburses sellers for lost or damaged inventory without the need to file a claim. If you file a request for an issue that’s already been resolved, it will be denied.
Example:
- Amazon reimbursed you for lost inventory, but you didn’t notice and filed a duplicate claim.
How to avoid this issue:
- Check your payments report to confirm whether you’ve already received compensation for the issue.
- Review Amazon’s automatic reimbursement notifications in your account.
Requesting excessive reimbursement amounts
Amazon calculates reimbursements based on the Fair Market Value (FMV) of the product, which is the average selling price over recent weeks. Sellers who request amounts higher than the FMV will have their claims denied.
Example:
- If your product’s FMV is $30 but you request a $50 reimbursement, Amazon will reject the claim.
How to avoid this issue:
- Calculate the FMV accurately before submitting your claim.
- Factor in Amazon’s referral and FBA fees when determining the reimbursement amount.
Policy changes and updates
Amazon frequently updates its policies, and claims that don’t align with the latest guidelines will be denied. Sellers who are unaware of these changes risk submitting invalid claims.
How to avoid this issue:
- Regularly review Amazon’s reimbursement policies to stay up-to-date.
- Consult professional services or resources to ensure your claims align with current rules.
How to maximize reimbursement success
If you want to avoid having your claims denied, follow these best practices:
- Keep detailed records: Maintain organized records of shipments, orders, returns, and transactions to support your claims.
- Understand Amazon reimbursement policy: Familiarize yourself with Amazon’s rules to ensure your claims meet the criteria.
- Monitor your account regularly: Check for discrepancies early and file claims promptly to meet deadlines.
Use professional tools or services: Amazon reimbursement tools or expert services can automate the process, ensuring claims are accurate and compliant.
