FBA Inventury Reinbursement
Hi all,
I am becoming increasingly frustrated with how reimbursement is handled under FBA when inventory is damaged or lost by Amazon.
In several cases, we’ve received reimbursements that are around 50% (or even less) of the item’s value. It’s especially difficult to accept when the issue is completely outside of our control, but this has become so often that its hard to control anymore.
While I understand there is a policy in place, the current reimbursement amounts often don’t reflect the true cost of the product, including manufacturing, shipping, and other associated expenses. This leaves sellers significantly out of pocket.
We’d really appreciate more transparency around how these reimbursement values are calculated, and whether there are plans to review this so sellers are more fairly compensated in situations like these.
Are other sellers experiencing the same issue? How are you handling it?
Many Thanks.
FBA Inventury Reinbursement
Hi all,
I am becoming increasingly frustrated with how reimbursement is handled under FBA when inventory is damaged or lost by Amazon.
In several cases, we’ve received reimbursements that are around 50% (or even less) of the item’s value. It’s especially difficult to accept when the issue is completely outside of our control, but this has become so often that its hard to control anymore.
While I understand there is a policy in place, the current reimbursement amounts often don’t reflect the true cost of the product, including manufacturing, shipping, and other associated expenses. This leaves sellers significantly out of pocket.
We’d really appreciate more transparency around how these reimbursement values are calculated, and whether there are plans to review this so sellers are more fairly compensated in situations like these.
Are other sellers experiencing the same issue? How are you handling it?
Many Thanks.
4 replies
Seller_76AUwmqvSyRIM
I sympathise.
Amazon will only reimburse the purchase or manufacturing cost of the item, excluding add-ons such as shipping etc.
The first thing you need to check is to ensure that your sourcing costs are correct on the Amazon system. If you are not familiar with this, go to the link below and update all the costs that are less than they should be. Leave those that are higher.
Sky_Amazon
Hello @Seller_wq1wIRrH7aotN
@Seller_76AUwmqvSyRIM Thank you for chiming in and helping out with the additional details.
I appreciate you sharing the concern here and bringing this to us to understand how is the reimbursement calculated.
As per the policy we calculate reimbursement value based on whether the item was lost or damaged before or after it was ordered by a customer (end consumer).
I would recommend you updating your sourcing cost for an item on the Manage Your Sourcing Cost page on the Inventory Defect & Reimbursement portal. If you don’t provide your sourcing cost, as per policy we’ll use our own cost estimate for reimbursement calculations, which will be displayed on the same page. To generate an estimate of the item’s sourcing cost, we evaluate the sourcing cost of comparable products sold by Amazon, by other sellers, and through other wholesale channels.
To share more context on “Sourcing cost”. This includes your cost to source a product from a manufacturer, wholesaler, reseller, or produce the item if you are the manufacturer. It excludes costs such as shipping, handling, customs duties, or other costs. If you provide your sourcing cost, our partner team will ask you to provide additional information to validate the amount. Please go to Manage Your Sourcing Cost for accepted proof-of-value documentation details.
Your specific cost data is not shared with any other seller in Amazon’s store, including Amazon Retail. This data is used to calculate your potential reimbursement, and to improve the usability and effectiveness of our services for your benefit. Hence, I would request you go through FBA inventory reimbursement policy for all the details related to the eligibility, claim and reimbursement.
In case you don't agree with our valuation of a unit, you can file a claim via the "Contact Us" button in Seller Central within 60 days after we have issued the reimbursement.
Please let us know if you need any further details.
- Sky
