Mastering Amazon FBA Reimbursements: Your Ultimate Guide!

No More Leaving Money On The Table - All You Need To Know About Amazon FBA Reimbursements!

Hey there, fellow Amazon Sellers! Welcome to my little corner of the Internet! Do you want to uncover the secrets of successfully claiming reimbursements from Amazon?

Let's go!

But before that, in case you aren't already familiar with me, here's a little about who I am: My name is Vova Even, and I'm always eager to share with you all the wild and wonderful experiences I've had as an Amazon seller since 2016.

That's not all, though. There's a lot more of me you'd like to know… 

I'm also an instructor on Udemy, sharing my insider knowledge of Amazon FBA with enthusiastic sellers.

And if that wasn't enough, I'm a content creator too!

My YouTube channel is filled to the brim with reviews, tutorials, and hacks with some of the biggest names in the Amazon selling game.

Whether you're a seasoned seller or just dipping your toes into the FBA waters, I've got something for you.

And take my word for it - it's going to be fun! 😉

Okay, so today, I'm going to reveal the top secrets on how to successfully claim reimbursements from Amazon!

Exactly, I mean one of the most pressing issues surrounding the lives of sellers.

Tons insightful tips and tricks that might change the whole game for you! 

Before we dive in, let me impart the greatest news already - it's always possible to get your money back on Amazon.

Just get the hang of it, and you can get more and more money back in no time. 

What Is Amazon Reimbursement?

Let's kick things off with the most basic question - what in the world are Amazon Reimbursements?

While you may have heard about them before, let's dig into the nitty-gritty of the subject today. 

Well, it's 100% legal for every seller to initiate a support case in Seller Central and request that Amazon credit their account with money or inventory units if they have a legitimate case that proves Amazon owes them money or needs to issue them credits. 

One simple and straightforward scenario for filing a claim with FBA is the "Inbound FBA Shipments," i.e. when you notice that not all of the units you sent in have been checked in.

For instance, if you sent a pallet of 10,000 units and only 8,974 units have been checked in, you can click on a button after a specific date and follow certain steps to file a claim.

This process is usually automated, and in many cases, you may not even have to open a case. Amazon may inform you that they found the missing units and will credit them to your account.

Or, in other cases, they might as well ask you to provide the value of the lost units so that they can credit you accordingly.

If you get a little too lucky, the reimbursement amount you receive from Amazon may be more than what you paid for the products initially.

While FBA's automated claim process is made to be pretty straightforward and efficient, there may be times when you're faced with glitches, or the entire process becomes prolonged.

Alternatively, Amazon may deny your claim if you miss the required time window, even if you opened the case a year ago.

See how it works?  

Plus, it's not just lost inbound shipments that you have to worry about - it's also about the lost and damaged items in your warehouse, as well as damaged inbound shipments.

And let me tell you a straight-up fact, it's not always easy to identify these discrepancies with just your own fleshy eyes.

Yep, you read that right!

You'll need to become skilled in running business reports, which could involve learning from online resources like Udemy, relying on the expertise of your accounting team, or hiring outside help.

Sure, it may seem daunting, but what if I were to tell you this is the only way out?

And here's another thing, it's precisely what works for those bigger providers who have invested their whole lives in staying on top of the game. 

All in all, people have to do the digging around, called the "Reconciliation," i.e., figuring out what's missing based on the business reports and letting Amazon know it.

This means you'll need to present your data in a way that you're able to make the cut without being misunderstood.

Yep, the process is complex and can also lead to misunderstandings, which might harm you as a seller.

The key here is - to handle the process as professionally as you can! 

So, basically, asking Amazon for Reimbursements means claiming back the cash that would have been gone forever if you didn't take action.

Let's admit - letting your hard-earned money go in vain is the last thing you want.

So, why lose it when you're in full right to claim it anytime you like? 

What Types Of Amazon Reimbursements Are There?

Now that you know it's totally possible to get your money back, let's dig further into the subject.

Among the major categories of reimbursements, we have the inventory that's lost or damaged during transit or while in the warehouse. 

First up, the most apparent category that's affected is referred to as "Lost Inbound."

This category looks more at the fulfillment process than the warehousing aspect.

Unfortunately, the items in this category are lost and not damaged, and no one really knows where they are.

Also, there may be errors in fee charges and overcharging for referral fees due to variations in weights and sizes that can occur when items are checked in at different times.

Hence, I'd advise you to ensure beforehand that you are being charged accurately for the actual weight and size of the item.

That being said, it's essential to note that we have the responsibility of making a reimbursement claim.

Because honestly, sellers won't inform us if we undercharged them, it's up to us to decide whether or not to make a claim.

But hey, the final decision is Amazon's!

Moreover, Amazon does quite a lot of automatic reimbursements, and many Amazon reimbursement providers are concerned about this.

But I'd say this is a positive development, and Amazon should continue to increase the number of automatic reimbursements.

Nevertheless, it's crucial to ensure that the dimensions are correct and that items are not lost or damaged during fulfillment or while stored in the warehouse.

Then, there might as well be "order-related" issues, such as when a seller receives a refund despite not returning the item.

In other cases, the seller might receive a replacement item and a refund simultaneously.

These issues are related to the order itself and honestly, they're often the result of customers intentionally scamming Amazon sellers.

And here's what you didn't see coming - the process of fulfilling an order isn't always as straightforward as we think!

That's because items may move between different internal warehouses, and of course, there are high chances that errors may arise in the check-in procedure.

As a result, an item might get replaced multiple times, which is frustrating for the seller.

And justifiably so!

You could have quite a lot of customers upset about the product on Amazon, right?

Another potential issue that might come up is the "incorrect disposal of orders," which arises as a result of confusion between the expiration date and manufacturer date.

Well, it's more likely in consumable items like Vitamins.

As a general observation, though, the items with higher levels of fulfillment activity, for instance, those that are refurbished and resold, are less likely to be returned.

On the flip side, brand and private-label items typically have lower return rates and fulfillment activity.

Consequently, items with lower fulfillment activity, such as those that are merchant or seller-fulfilled usually end up with fewer reimbursement claims.

So, as a general rule of thumb, the less fulfillment activity, the less amount of reimbursements there are to claim.

To sum it up, different categories of products carry different values of money in terms of fulfillment activity, which can vary between refurbished electronics and other categories.

Thus, there are several ways in which items can be lost or damaged during transfers between warehouses within Amazon's extensive fulfillment network.

As a seller, it is important to understand this and be prepared for the possibility of such occurrences.

Despite this, know that it's your right to retrieve lost items.

And that brings you to my next question. Let's explore!

Can I Get Reimbursements From Amazon Myself, Or Will I Have To Hire Someone For It?

Generally, there are 3 ways of getting reimbursed by Amazon, here's what's possible:

On the one hand, it's a convenience surplus similar to the original credit cards of the past, where you had the money upfront to pay off your monthly bills, which is pretty much how American Express was designed in the first place.

So when there's a need to save time and effort, this convenience service comes into play, where you pay someone else to take care of it.

On the other hand, there are different pricing models and different levels of trust the person has, or let's say, the mentality the seller has as to why they would want to go through one model or a different model.

But one thing's for sure - at one point or the other, customers begin to value the quality of service more than the convenience.

Let's say two mechanics charge the same price of $1995 to change your oil, but one leaves greasy fingerprints all over your car while the other does not; it's obvious you would choose the second mechanic due to better performance.

And since performance matters the most, the most popular business model for reimbursement providers is a fee that's based on a percentage of how much they actually get back.

For instance, if a reimbursement provider charges a fee of 25% based on the amount they recover, and they recover $100, they will bill you $25, leaving you with a net of $75.

Myself, as a seller, I am using such as service, and I don't mind paying the % as long as the job is done well.

I use Getida for such a service, and I'm happily sharing with you an awesome Getida discount that will help you get started for free, and you'll get $600 in reimbursements with 0 fees.

To understand what Getida is and how it works, read here.

However for some people, at some point in time, the person using the service may start to question the need to pay such a fee, especially if they can see that most of the money being recovered is due to inbound losses that they can see with their eyes.

Here, the convenience of the service becomes less important, especially when the fees start to add up to thousands of dollars, even if the fee is only 5% for a big seller.

That could make them want to have someone from the staff do it for them.

That makes sense, right?

Conversely, some sellers may be very private and reluctant to share their MWS synchronization and user permissions, as well as their size.

Hence, they may turn to online platforms such as Udemy or YouTube for tutorials and guidance on how to handle reimbursements on their own.

Here's for example a course on Udemy that explains how to get reimbursed from Amazon.

The tool that is used in the course is Getida, I've mentioned it before, I'd recommend you read my detailed Getida review.

Anyhow, given that most of the businesses on Amazon are small, with very little staff, outsourcing this service is usually the most common practice.

In addition, there are also reimbursement service providers that offer different business models.

For example, some may charge a flat fee of $100 per month.

Such companies are Helium 10, Sellerboard, and Sellerise.

Others may include the reimbursement service included in another service.

Also, there are providers who charge a per-event fee, such as a virtual assistant or an accountant, who may go in and handle reimbursements from time to time, whenever the client reorders that service.

Let's suppose I go to this guy who serves as my virtual assistant and does everything he can for 300 bucks.

Cool, right?

And that might just perfectly work for your business operations!

If you were to take my opinion on this, then yes, while it's possible to have someone from the staff handle your reimbursements, you might want to reconsider this.

An employee may have multiple roles and responsibilities, but their mentality is that of an employee, while a reimbursement provider is focused on being at the top in their industry.

And if that wouldn't provide you with the level of dedication and expertise that add to your business operations, I don't know what will!

So, to simply put it, I'd encourage you to go with the provider.

Many sellers have gone through one or more reimbursement scenarios before they finally settle into one.

At that point, it gets more challenging than ever to convince those who have already gone through reimbursement scenarios to switch to a different provider or approach.

Some sellers may feel that they could do the reimbursement process themselves, and I think that might be a pretty good approach if they feel that they're paying extra for something that they can handle on their own.

However, most sellers are aware that it requires a depth of understanding and constant attention.

They rather focus their efforts elsewhere, such as picking the right product, having the right vendors, and streamlining their operations.

In fact, brand owners are typically looking to reduce roles in the future so that they can assign tasks to others and focus on frontline growth and expanding their product line.

These sellers really know the worth of outsourcing a task!

Let's suppose I'm passionate about adding value to the supply chain, but at some point, I may want to focus on creating my own unique product rather than just being a reseller.

And that's where outsourcing certain tasks like reimbursement comes in handy, so I can focus on what truly ignites the spark in me that adds the most value to my business.

When it comes to something like reimbursement services, which requires a thorough understanding of Amazon's policies and procedures, a provider who's dedicated to constantly staying on top of the latest updates and changes can be more like a blessing in disguise!

What's Hard About Getting Reimbursements From Amazon?

As we mentioned earlier, besides lost inbounds, you have to really run a lot of reports.

And while it's just the lost inbound, it's not half as simple as you think!

A lot of times, cases are closed, and reimbursements are not made because there's insufficient information provided by the seller.

Pretty sure everyone knows that Amazon doesn't like a case opening a second time.

Yep, so, as you would've guessed already, the real difficulty lies in doing it the right way.

And so, the most difficult area of reimbursements is the computations - without a shadow of a doubt.

In case you're confused, computations are where we are trying to find the right way to make a claim without leaving anything on the table and without getting too many decline cases since that can lead to a performance notification, possibly even a suspension.

As a matter of fact, the biggest challenge lies in the process of computing, which involves determining the exact amount owed and providing proof of it to Amazon.

This way, you can tell who's willing to go the extra mile and take up more of this work, again and again.

Amazon changes its system ever so often, including what expenses are reimbursable and what aren't, along with their specific time frames.

Plus, they also modify how the data is laid out and the way your case needs to be put forth.

This means your computation process must be flexible, pretty much like solving math problems where simply showing the answer isn't enough - the teacher often needs you to show them your work.

Likewise, when presenting a case to Amazon, make sure you're able to showcase your computations and have your solid grounds ready to prove them too.

Having said that, your goal must be to stay on top of all the changes Amazon makes, so you can get your case across.

In some cases, individuals and employees encounter an issue, where they may hit a wall when their reimbursement cases are declined.

This may want them to stay away from working in the area again.

Employers might as well criticize employees who put in extra effort and try to dip their toes in everything.

They may expect the employee to make quick answers, but the employee may still be in the process of figuring things out.

Buddy, it's natural for this issue to arise in almost every field of work, eh?

But those who are passionate about reimbursement computation turn their back on the challenges and still make a cut!

Suppose an employee from the Financial Analysis or Accounting Department was reassigned to handle reimbursements.

He might find it interesting and enjoy sharing with his peers what he does for a living.

On the contrary, if an employee isn't enjoying the shift of his work, he might eventually quit and pursue something that really intrigues him.

The point I'm making here is - people move in the directions where they find pleasure.

And not everyone can handle reimbursements.

Well, a lot of people make switch-ups, and I think that's totally okay.

Lastly, I'd say it's crucial to know that individuals often give up on their work before finding their true passion.

And guess what? It's perfectly acceptable to explore different fields until you're able to land on the right one.

The key is to find fulfillment and purpose in what you do!

Coming back to reimbursements, it can be quite a hassle to stay on top and keep up with the changes that Amazon makes.

So anyone who's up for the task will need to be up-to-date with the latest policies and procedures and be willing to adapt!

Just a little thing before we delve into the next question, retrieving money is also no easy feat.

From my personal experience as a seller, I've had to deal with countless reimbursement cases, having to allocate quite a lot of time away from researching the products and other things associated with selling.

And man, it really is frustrating and insanely time-consuming.

Even so, sometimes it's something that the sellers don't even want to do, but they eventually end up doing it for the sake of their money.

What's The Difference Between Different Amazon Reimbursement Services?

As you'd expect, along my 7-year Amazon seller journey, I've had experience with multiple reimbursement service providers.

Currently, I am with Getida.

I'm sure this pops up a question in your head - what sets these services apart from one another?

So, in terms of service providers, there's a broad range of options to look at.

These include employers who offer training on platforms such as Udemy, virtual assistants on Fiverr, and independent accounting professionals who rely on several clients for their livelihood.

But if we were to stick to just the providers, there are different models in them too.

First and foremost, the biggest service providers are no less than machines in terms of their work.

The second category of providers is more automatic in nature, and they typically require a monthly fee.

While their services may not be as robust as those of the big providers, they are still effective and offer a great bang for your buck!

There seems to be a new provider coming into the scene every day who thinks it's a nice little cash machine.

But when it comes to the reimbursement providers, don't forget - not all software and services have legit claims.

While many providers may claim to offer the same solutions, the reality is that some are simply using the same software purchased from the same different organization.

The secret key here is to ask in-depth questions to understand whether or not you can trust the provider with your business.

Now, there are a number of different providers offering reimbursement services to Amazon FBA sellers.

But the market is mainly dominated by the "big three" providers, with a number of other smaller players in the space as well.

One of them is the original one, and the second one became known in the space because it introduced this novelty called "Make Your Own Cases."

These providers deliver to you, and all you have to do is kind of glance over it in response to the original provider.

Then, the second provider entered the market in 2015 in response to the issues caused by the first provider's automation practices.

They introduced a new feature that allowed users to have more control over the reimbursement process.

Here, the clients could verify the details of their cases before forwarding them to Amazon for reimbursement.

And they simply had to hit the button to forward their case.

And lastly, a third provider joined the scene, following in the footsteps of the other two and offering a similar service.

Let's get this straight - there are three main categories of service providers: the big three, around ten other companies, and the national hunters.

The specialty providers are just add-ons to the existing services, such as a reimbursement section within a popular seller tool suite.

There are around ten such services available under different names.

While some of these can be purchased through consultants, they all use more or less the same software, either bought or developed by the same place.

So basically, the big three are highly regarded as being the superpowers and are the main divisions of service providers.

Simply put, there are many service providers out there that specialize in different areas, some of which explicitly offer certain services while others do not.

For instance, one of the big three powers does not provide order reimbursements.

Yep, I mean the category of cases related to issues such as customers not returning items, returns being accepted past the allowed date, and incorrect disposals of items.

To make sure that your provider is offering the most well-rounded service possible, it is important to be aware of the various categories and what each of them offers beforehand.

But hey, the industry can be somewhat opaque, and there is no independent third-party provider that keeps a list of all the subcategories and which company offers them.

Generally speaking, the big three providers are reliable and trustworthy, but considering new services that may offer additional benefits never harms, right?

The best part, most services do not require a contract and can be started and stopped easily, so it's easy to try out a few different options and see which one works best for you after a few days or weeks.

Here's for example a review of some of those reimbursement providers and software; Helium 10 Refund Genie vs Seller Locker vs Refund Sniper.

Are These Services Safe To Use?

The main safety concern for every seller is - they don't want to get banned.

And for that, they need to ensure that every service they're using is safe and doesn't create any problems for their sales game.

Let me tell you what, apart from a few issues back in 2015 or 16, this industry is usually safe.

Amazon doesn't really want automatic cases, and most cases are now created manually.

Not just that, the majority of service providers also avoid any issues that could lead to problems with Amazon, as they don't want to risk their reputation or account.

Typically, issues with aggressive behavior usually only arise with independent providers who have a smaller number of clients and can afford to take more risks.

But when it comes to building a system like the bigger providers, you need to have your ducks in order, i.e., make sure to prioritize avoiding any risky behavior that could result in problems with Amazon.

Think about it - the last thing you'd want as a seller is to run into issues with the platform that helps you come forth to sell!

Connected to this, yet another potential mistake that a seller could make that could cause trouble is hiring multiple services - all at once.

That's a huge NO!

While they may think that by doing so, they'll get the best of both services, it's far from true.

Without an independent manager to oversee the work being done, the risk of overlapping is a bit too high.

That's one thing Amazon can't stand - Overlapping or Automation.

And before you ask, it could lead to performance issues and suspension.

Well, my friend, overlapping or, let's say, making the same claims more than once related to the same order ID or shipment ID is perhaps the worst thing you could do.

I'd say it's crucial to handle a claim only once unless there's a way to handle it properly the second time.

Otherwise, don't!!!

Because frankly, multiple providers working on the same task without communication or coordination might open up a whole maze of issues, and might even turn out to be the biggest reason for the trouble.

But generally, I'd say the providers themselves are all pretty much across the board, or they're entirely in the safe zone.

When you approach the service providers as a seller, they will typically explain their services to you and how they work.

Also, they'll most likely inform you of any limitations or restrictions they have in place, including what can and cannot be automated.

And in case you don't already know, it's more important than ever to get the hang of these details before using a service to avoid any potential issues or violations of Amazon's policies.

Additionally, the process of inputting data into a case in Amazon and hitting enter should be done entirely manually.

But yeah, there are good chances people might as well be automating this process in a way that appears manual - I don't really know about that.

Or, there may be people who don't even want to use the word automation.

That said, yes, Amazon may be able to distinguish between manual and automated processes, but the crux of the biscuit is that the inputting process should be done manually to avoid detection.

But of course, you'll eventually have to do automation at the back end to run reports and perform a couple of other tasks.

Because obviously, there's no way you can download business reports manually with your finger.

This is where the need for APIs and keys kicks in, along with the payment for the backend service provided by Amazon that allows you to access the data.

And let's not forget the process requires rigorous development of skills to be able to gather and reconcile the data, do analysis and computations, and ensure that everything aligns properly to make a clear and effective case.

Exactly, this is where most people use the process of automation.

Again, this wouldn't apply to someone who has only three to five clients and is not building a system.

In that case, he might be the reporter for this business.

To conclude the answer, the bulk of the work and automation happens at the backend.

Especially when downloading reports and systemizing data, because Amazon doesn't get to point this out.

So yeah, these services may not be fully automated, but they seem to be safe and reliable based on my personal experience.

Because I've never had problems with the previous two reimbursement services that I've used, I'm using the third one currently.

Pretty cool…I know, so let's see how it goes!

Another big player in this industry is Seller Investigators. Here's my detailed review of Seller Investigators reimbursement service.

How Long Does it Take to Get Your Money Back From Amazon?

The next thing that strikes our minds is - how long does it take the money to hit your accounts back?

Typically providers onboard clients within one to three days, and the sellers will see their case opened within a day.

The money will start hitting their account after the cases are solved, which might take days or weeks, depending on the mastery level of the provider, and sometimes luck.

Then, they can view the cases in the client portal, and while other services are similar, there may be a slight delay.

The real question is - what are these service providers doing at the moment you get on board with them?

Well, historically, all categories covered an 18-month period, which means you can claim any money owed during that time.

Also, it's advised to determine whether the provider is focusing on the oldest claims first and working their way forward or tackling each category as a whole within the past 18 months.

Remember - you can't start claiming the most recent activity yet, typically within the last 30, 60, or 90 days.

That said, each provider has their own cedar at tackling the work at hand, which means that the timeframe for addressing past claims may vary significantly.

But things have changed over the past year, and now many of the big money categories only cover the past three months instead of 18 months.

This means that providers have a shorter window to claim what is owed.

Depending on their approach, providers could either claim all the money at once or spread it out over time so that there's never a sharp drop in customer service.

Generally speaking, all this happens in just a few days.

To further clarify, after opening a case with a reimbursement service provider, you'll know within just a few days whether or not you will receive any money.

Personally, I have used two reimbursement services in the past and am currently using a third one.

Although it hasn't been long since I last opened a case with the previous service, I'm now trying out the new one, and the team seems friendly and efficient.

Here are some Amazon reimbursement results I've gotten from my recent provider, Getida.

So, I'm really looking forward to getting reimbursed again!

As much as I wish there was a third party to take care of it, it's no piece of cake because, as a matter of fact, every situation is unique.

Each seller experiences periods of high and low sales volume, and so those periods can impact reimbursement claims more than we anticipate.

Plus, let's say a seller switches providers, the new provider may be working on cases from 100 days ago that have a tremendous amount of issues due to the recent pandemic, or increased returns.

This makes one thing pretty straightforward - it's impossible to put a metric across all accounts.

It's largely because these timing issues can create a pretty tough situation that might get super complex to even get across.

As a seller, you're left wondering whether you made the right choice with your reimbursement service providers.

Because obviously, even sellers don't know exactly where they stand or why they got that money back.

You could probably have seen it on a business report or maybe cracked it through an invoice.

I understand your mind can be all over the place, so some services send you an invoice so that you can experience the difference for yourself.

The best part? That invoice is a direct percentage correlation of how much they got you back in your pockets.

Another question may come up here - why exactly do sellers switch services?

To answer this, while the financial outcomes are obviously important, the seller's overall experience with the service provider can also play a role in their decision to continue or switch services.

For example, some service providers may be so good at creating solid grounds the seller may be compelled to give them a shot.

Whether or not you made the best choice, often it's a qualitative experience more than a quantitative one.

But even because it's still a qualitative relationship to the actual check that you got, it's hard to know how it lines up with the rest of your business.

So yep, feelings really come into play here.

The Bottom Line

Getting reimbursed for Amazon FBA errors doesn't have to be as scary as it looks.

All you need is the set of right skills and tools, and you can set forth to recover your lost funds like it's no biggie. 

Here's a pro tip: work on identifying mistakes, leveraging technology in a way that works for you, and joining hands with trusted reimbursement providers can streamline the reimbursement process in no time.

And obviously, maximize your profits! 

Take action today and get the reimbursements you're entitled to.

My go-to provider is Getida, I've been a happy customer for over a year.

Watch my results with them in the video below, and grab an awesome Getida promo code here.

Who knows - you could just be a step away from taking your Amazon business to new heights! 

Until next time,

Yours,

Vova :)