Bad news: Amazon may owe you money without you even knowing it.
If you’re an Amazon FBA seller, there’s a good chance you’ve had some lost or damaged inventory in recent months, and you’re eligible for reimbursement of the value of that stock.
Unfortunately, it’s not always easy to get reimbursed by Amazon for these losses.
The good news: Helium 10’s Refund Genie tool helps you claim back what you’re owed in a few simple steps.
In this article, we’ll discuss how much money Amazon might owe you and how you can quickly claim it back.
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Does Amazon owe you money?
The first question for FBA sellers is if you are owed money.Â
If your Amazon business makes more than a few monthly sales, the answer is likely yes.
Amazon moves stock between fulfillment centers all the time, and because of the many moving parts in the process, mistakes can be made regarding Amazon sellers’ FBA inventory.
Here are the reasons why Amazon might owe you money:
1. Lost inventory
First up, they lost it!
When transferring between warehouses or between warehouse locations, a unit (or more) of your inventory may be lost and unable to be found again.
Unfortunately, missing inventory is a relatively common occurrence.
As Amazon has grown so large in recent years, the logistics operation has become increasingly complex, making it easy for small amounts of inventory to slip through the cracks.
2. Damaged inventory
Inventory can be damaged at a number of stages in the process.
Of course, an obvious example of inventory damage happens in Amazon fulfillment centers.
Amazon employees can easily drop a carton or something fall off a shelf. Amazon should reimburse for this kind of damage.
Inventory can also be damaged en route to customers.
Given the self-imposed pressure on Amazon to continue delivering faster, more efficient shipping times, there can be a lot of rushing, hustling, and bustling.
This can cause some human error and lead to drops, scrapes, and squashing, which damage inventory.
3. Returned inventory
Customer returns are an expected part of selling online.
But many Amazon FBA sellers assume that they have to take the hit for every one of these returns when, in fact, they may be eligible for some Amazon FBA reimbursement claims.
Here are some scenarios where you may be due an Amazon reimbursement:
- Returned Not Refunded after 45 Days: The customer got a refund but never returned the item
- Returns Reimbursement: The Amazon FBA reimbursement was never paid out
- Wrong Item Returned: A customer returns the wrong item, which was then accepted by Amazon
- Damaged Returns: The product was returned but then damaged
- Return After 60 Days: A customer has a longer window to return the item
- Return Overcharge: The customer was refunded more than they had actually paid
Amazon has certain timeframes within which you can claim these FBA reimbursements, so it’s important that you follow the steps in this article to claim them regularly.
Given how much Amazon favors the customer in return situations, you’re likely owed a lot more than you realize.
4. Destroyed and disposed inventory
Here’s another area where mistakes can occur.
Inventory can be incorrectly deemed as due for disposal and done so without your permission.
You may or may not receive a notification about this, so you must have a regular routine of using something like Refund Genie to claim this money back.
5. Overcharges in Amazon fees
Finally, Amazon can, at times, change your product’s size and weight settings.
They regularly check the metrics for products to ensure settings are accurate and they are charging the correct fees.
But again, this is an area where mistakes can be made, leading to FBA fee errors.
Use Helium 10’s Alerts tool to notify you of any changes made to your listing so you can quickly correct any errors and claim back overcharged FBA fees.
How can I reclaim the money Amazon owes me?
Given the number of possible scenarios that result in Amazon owing you money, it’s highly recommended that an Amazon seller establish a regular process for submitting claims for FBA reimbursements due to lost or damaged items.
For most sellers, a monthly routine of submitting these Amazon reimbursement claims is the best balance.
Here are your options when it comes to reclaiming the money potentially owed to you.
1. Do it yourself
The first and obvious solution is for Amazon sellers to manage this process themselves.
If you’re just starting out or are low on funds, this could be a way to get the process started.
To find the information you need, navigate to Reports > Fulfillment > Inventory Ledger.
This report will summarise all inventory movements, including the categories mentioned above, for which you can make an Amazon FBA reimbursement claim.
You can also use the inventory adjustments report to claim Amazon FBA reimbursements.
The DIY option is generally not the optimal solution over the long term, as the data Amazon provides isn’t always as straightforward as you’d like.
It can take some digging and analysis, so if you’re not a data expert or just prefer to spend more of your time on mission-critical tasks, read on for further options.
2. Hire a VA
You can hire a virtual assistant to help with many aspects of your Amazon business.
One such example is manually producing the necessary reports and opening new cases for seller support to submit an Amazon FBA reimbursement claim.
Once a standard operating procedure has been set up for this, it can be a relatively hands-off task, but of course, it does mean employing a member of staff, paying wages, and signing up for other ongoing commitments.
3. Use a dedicated Amazon reimbursement service
With a growing number of sellers on the platform, firms have sprung up that recognize there is a need in this area and are providing managed services to claim back money owed to you.
Services like Seller Investigators will take care of the entire process for you.
Connect your Seller Central account to their software, and they will routinely claim this money back for you.
The downside of a service like this is they will take a cut from any money claimed.
4. Use Refund Genie by Helium 10
Perhaps the most convenient and cost-effective solution is to use the Helium 10 Refund Genie tool – a somewhat automated FBA reimbursement tool.
This is one of the tools in the suite that Helium 10 offers and helps add even more value to the already competitive pricing plans.
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How does Refund Genie work?
Refund Genie automates much of the time-consuming process of preparing accurate reports and compiling them to submit FBA reimbursement claims to Amazon.
In a few short minutes each month, you can claim back every cent you’re owed by Amazon.
Here’s how:
1. Connect your account
The first step is to ensure your Helium 10 account is connected to your Amazon Seller Central account.
Follow the steps inside Helium 10 to sync your accounts so that Refund Genie can track inventory discrepancies and whether you have been reimbursed for them or not.
2. Run the Refund Genie report
Head to the tools menu inside Helium 10 and open up Refund Genie.
You’ll find one report per marketplace, per account, per month.
Each month, you can set a task to download the latest report. To do that, click download next to any reports that show money is owed.
Your report will download and be ready to be submitted to Amazon.
3. Rename the spreadsheet file
The downloaded file will contain instructions on what to do with the files.
You should rename the .csv file to something like YOUR BRAND—Lost (or Damaged, whichever the report is) and then follow the instructions to open a case.
4. Open a case with Amazon
Navigate to Help > Get Support > Selling on Amazon, and in the text box, use a customized version of the text Refund Genie supplies to explain you are looking to be reimbursed for lost inventory.
Next, select either the lost or damaged in warehouse option.
If asked to enter a transaction number, click the ‘Contact Us’ text below. You will then be able to attach the spreadsheet(s).
How many transactions should I include per case?
Refund Genie makes it easy to submit a lot of transactions, but I’d recommend you only submit a maximum of 5 spreadsheets at any one time.
Submitting any more than that could slow the process and, therefore, the money being put back in your seller account.
If you keep it under 5, it usually processes very quickly.
How much does Amazon refund?
Amazon won’t refund you the full price of your product.
They will refund based on an average selling price over the product’s recent history, minus any fees the normal selling process would incur.
These include Amazon referral fees and any Amazon FBA fees.
Will Amazon notify me when I’m owed money?
No, herein lies the problem.
Amazon will notify FBA sellers when they actually reimburse you, but you are responsible for claiming the FBA inventory reimbursements. This is why having a good monthly reimbursement process is essential to claiming any money owed.
Is Refund Genie the best option?
If you’re happy to do the work yourself, yes.
We use Refund Genie to process our Amazon FBA inventory reimbursement claim every month. We have claimed back hundreds of dollars, and all it takes is a few minutes of processing.
It easily saves hours every month, leaving you more time to focus on learning how to grow sales on Amazon, and is just one of the tools included in the complete Helium 10 suite.
By using Amazon FBA reimbursement tools like Refund Genie instead of a reimbursement service, you save the 10-25% commission you might otherwise have to pay.
However, if you want to outsource this aspect and try a reimbursement service, this is our most recommended option.
If you want to try Refund Genie for yourself and see how much you can save, you can start with a Helium 10 plan with 20% off here today.
