Amazon FBA Reimbursement

As we noted in our previous article Amazon Seller, sellers can sign up for Fulfillment by Amazon (FBA). With FBA, Amazon handles storage, packing and shipping orders, and customer service. This order fulfillment model may be an effective tool for an e-commerce business. Yet, the Amazon customer returns policy can have negative effects. Returns can lead to loss in terms of time, inventory, and finances. Your customers have the option to return goods for a wide range of reasons. Over 20% of Amazon and other e-commerce orders were returned in 2021, according to several major news outlets.

How do sellers get their money back from FBA? 

Amazon does allow customers to return an FBA order within 30 days of delivery. Other exceptions may apply depending on the specific good and/or product category. After a customer returns an item, Amazon has the power to reimburse sellers if they encounter certain issues with the return. 

Buyer Return Issues | Amazon FBA Reimbursement

Several factors come into play regarding reimbursement. First, if a buyer does not actually return the product. Customers have 60 days to return goods. Amazon refunds the consumer after the return is submitted. If Amazon does not receive the return within those 60 days, the seller will be reimbursed and the consumer gets a new charge. 

If a customer returns a product that does not belong to the seller’s company. Consumers may send incorrect goods as returns. The returned item may not even be a product the business sells. Amazon may state the item cannot be resold and that they will not reimburse the seller. At that point, sellers can proceed with a removal order to examine the product. Sellers can file a claim for reimbursement. They have to confirm the returned item is incorrect. Ample evidence should be included with the reimbursement claim, like photos of the product, package, License Plate Number (LPN), and tracking. 

And third, if a customer returns goods that are unsellable. The Amazon fulfillment center grades returns received within the 60-day window as unsellable or sellable. For goods to be sellable, they must be in good condition and complete, as described on the product detail page. Unsellable items are damaged, defective, or somehow in a condition that renders it unfit for sale. If Amazon or the carrier is at fault, reimbursement will be approved. Damaged goods are not returned to be integrated back into the seller’s inventory and Amazon reimburses the seller. 

Amazon Reimbursement Policy | Removal Order

Sellers may benefit from reviewing the Amazon Reimbursement Policy. Several aspects of this policy merit close attention. Namely, the reasons Amazon gives to determine a seller is not eligible for reimbursement. 

If a consumer causes damage to the product that was returned, Amazon will not reimburse sellers for those unsellable goods. The same goes for recalled, defective, or Amazon-policy-violating products. Such goods are placed into the seller’s Fulfillment by Amazon (FBA) inventory and graded unsellable. To retrieve these products, sellers need to submit a removal order, which gives them three options for removal from the fulfillment center inventory. 

Goods like hazardous items and groceries, among others, are simply not eligible for return and can be refunded by Amazon. The seller will be reimbursed if Amazon is at fault. (Even if the item is not eligible for return.)

Typically, Amazon will reimburse sellers with inventory instead of payment. Goods with the exact same specifications in the fulfillment center are transferred to the seller as reimbursement.

Sellers can also reach out to Seller Support or file a case if they determine Amazon is in the wrong. (If an eligible returned product was not reimbursed.)

Amazon Customer Return Claims | FBA Inventory Reimbursement Policy

Amazon sellers should carefully familiarize themselves with the policy regarding customer return claims. It is imperative that the claim is correctly processed, according to Amazon’s policy. If sellers submit excessive, false, or inaccurate claims for reimbursement, Amazon may suspend their account. Using third-party outside companies to submit reimbursement claims can also result in an account suspension if the claims are submitted continuously. All of these ineffective actions can also work against sellers, especially if the claims were previously declined. 

Legal Counsel Improves Reimbursement Success

The team at Stockman & Poropat, PLLC has helped many Amazon sellers with FBA reimbursements. Our team will assess the particulars of your situation, develop a strategic plan, and write an appeal based on the facts. Contact us today for a free consultation if you are seeking to improve your success with seeking FBA reimbursement for eligible returned items. We will help you access the money you deserve.

Up next we will be discussing Certified Refurbished Amazon | Making Informed Purchases on Amazon Renewed.