FBA is the most popular selling model on Amazon. The retail giant provides inventory space, manages packing, shipping, and delivery of inventory. They also take charge of customer service and returning products.
Since FBA handles a lot of inventory for different sellers, mistakes are bound to happen occasionally. Being an FBA seller can be very beneficial, but sometimes it can be stressful when mistakes happen. The good news is that you can be reimbursed for these mistakes. Below is a list of common Amazon FBA mistakes that you can be reimbursed for.
1. Damaged or lost inventory
Inventory damages are a common FBA mistake that can occur during the fulfillment of an order or when a product is being returned from the customer by the carrier. The Amazon seller central damaged inventory report provides details of all damaged products. Consider partnering with a refund manager who will keep track and file Amazon FBA refund claims on your behalf as you focus on the core services of your business. The FBA lost and damaged reimbursement policy covers items lost or damaged in the fulfillment center, shipments lost on their way to the fulfillment center, things that have been missing for over 30 days, and products lost or damaged on their way from the fulfillment center to the customer.
2. Inventory charged at a higher FBA fulfillment fee
The FBA fulfillment fee, also known as pick and pack fee, refers to the amount Amazon charges you to fulfill an order. If Amazon charges you a higher fulfillment fee, it might take time before you notice it, and it can amount to a significant figure. The good thing is that they will reimburse the amount in full when you lay a claim.
3. Customer refunds for items never returned
Sometimes dishonest customers initiate a refund process and get reimbursed for an item they never returned. Amazon records will reflect that an item was returned and reimbursed, but the customer never returned the item. In such cases, you can claim a reimbursement. Ensure to audit your inventory to look out for such mistakes regularly.
4. Customer returns not added back to your inventory
This mistake occurs when a customer returns a product to Amazon but is not added to your inventory. You may find that the product was added to another seller’s inventory, so be sure to confirm such elusive errors using the return information and inventory adjustment report, and claim reimbursement.
5. Products damaged or lost in an Amazon warehouse
Owing to the fast-paced operations in Amazon warehouses, products are bound to get damaged. Regularly inspect the seller’s central report to ensure that all damaged or lost items are reimbursed.
6. Removal order never received
A removal order arises when you request Amazon to take back inventory that hasn’t sold and is costing you long-term storage costs that affect your profit margins. You’ll receive reimbursement equivalent to the price of similar products in the market.
As much as Amazon FBA is beneficial for sellers, the mistakes that arise can be costly if not noticed. Therefore, have your account frequently audited to ensure you’re aware of every error that needs reimbursement.