“Success depends upon previous preparation, and without such preparation there is sure to be failure.” – Confucius

Is Amazon’s mistake costing you money? We get it—it’s frustrating!

Every Amazon seller, from newcomers to experienced FBA veterans, is bound to make a few missteps. While some FBA errors are minor, others can lead to significant financial losses.

The good news is that Amazon FBA sellers are eligible for reimbursements if issues arise. Amazon allows sellers up to 18 months to conduct an FBA audit, through which they can submit claims for specific discrepancies and receive reimbursement.

So, what exactly is FBA? Fulfillment By Amazon (FBA) is a service where Amazon handles storage, packaging, and shipping on behalf of sellers, freeing them from some logistical responsibilities and enabling more strategic flexibility.

With FBA, sellers ship their products to an Amazon fulfillment center, where they are stored and managed until sold. When an order is placed, Amazon takes care of the packing and shipping. Yet, even in such a streamlined system, errors can occur.

Examining the Key Sources of Common Amazon FBA Errors

1. Product Damage or Loss, Rendering It Unsellable

Unfortunately, your FBA inventory can be damaged by Amazon during fulfillment or by carriers handling customer returns—an area where Amazon’s FBA reimbursement policy is often applied.

Naturally, when you send items to Amazon, you expect them to reach the warehouse safely. However, for various reasons, inventory en route to FBA centers may be lost or damaged. Whether this happens at Amazon's facility or during delivery to a customer, the result is the same: damaged products lead to losses for the seller.

One possible explanation for lost items is that they accidentally end up in another seller’s inventory, which can happen given the high volume of goods and orders managed. Either way, it’s a frustrating situation for sellers.

2. Return Errors and Dealing with Customer Misuse

Amazon’s commitment to prioritizing customers, as famously endorsed by Jeff Bezos, is well-known and sometimes exploited by a few dishonest customers. Some may attempt to keep products, hoping Amazon won’t notice, or use the items within the return window only to send them back in a used state. Unfortunately, even if you raise a complaint, Amazon often sides with the buyer. Sellers can only protect themselves by carefully managing each stage of the transaction.

Return scams can also involve consumers sending back empty boxes or unrelated items, issues that demand immediate action. In these cases, sellers can open a case with Amazon to seek a resolution.

Additionally, some buyers may claim they never received the item, especially if there’s no tracking number available. To protect against this, consider recording a video of the packing process to show that you sent the correct item. This video can serve as evidence, helping safeguard your business from such claims.

3. Errors in FBA Fee Estimations

Amazon FBA charges include commission fees, storage fees, long-term storage fees, and delivery fees, all of which vary depending on the category, size, and storage needs of your products. Sometimes, these fees may be miscalculated, leading to overcharges that add up significantly over time if not monitored closely.

Storage and delivery fees are based on the weight and dimensions of your inventory. If Amazon's records reflect inaccurate measurements, you may end up paying excessive FBA fees. Regularly auditing these details can help identify any discrepancies and ensure you’re not overpaying for Amazon’s services.

How to Get Reimbursed for FBA Errors

Fortunately, there are several ways to request reimbursements from Amazon for FBA-related issues.

One option is to handle it yourself. This is the least expensive route, but it can be time-consuming and prone to errors, especially if you’re not familiar with Amazon’s reporting tools. This approach is best suited for data-savvy sellers comfortable with navigating Amazon’s reports.

Alternatively, automated reimbursement services can simplify the process. Tools like Refunds and Amzrefund streamline the reimbursement process by automatically identifying discrepancies and filing claims. While convenient, these services typically come at a higher cost.

A third option is to hire a virtual assistant (VA). Outsourcing this task to a VA allows you to offload the regular tasks associated with claims management, freeing up your time. You can decide which tasks to delegate, and if you prefer not to grant them access to your Amazon Seller Central account, a VA can still review your data and provide insights, while you submit the claims directly.

Final Thoughts: Recovering Your Money from FBA Errors

Amazon’s fulfillment processes are efficient but complex, and it’s common for occasional errors to arise.

Fortunately, as a seller, you’re entitled to reimbursements for certain FBA mistakes, which can help you recoup lost funds and improve profitability. From misplaced inventory to overcharged fees, identifying and addressing these errors is essential to maintaining a healthy bottom line.

Book a Call with us today!

Need help navigating FBA reimbursements or other cost-saving measures?

Let us help you recover your hard-earned money and optimize your FBA operations!