What Types of Reimbursements Does Amazon Offer Sellers?

Have you ever experienced Amazon inventory mysteriously disappearing, items damaged in the warehouse, or customer refunds exceeding the actual selling price? Amazon FBA Inventory Reimbursement is a key protection Amazon provides to sellers, but many sellers still have questions about reimbursement types, the application process, and optimization strategies.

This article will provide an in-depth analysis of the key points of FBA inventory reimbursement from the perspective of an Amazon fulfillment provider and address sellers' most pressing concerns.

What is Amazon FBA Inventory Reimbursement?

Amazon FBA Inventory Reimbursement is a compensation program offered by Amazon to sellers. It entitles sellers to financial compensation when their products are lost or damaged in Amazon fulfillment centers, during transportation, or due to Amazon's error. As a professional Amazon fulfillment service provider, we've found that many sellers don't fully utilize this policy, leading to potentially recoverable losses being overlooked.

Five Types of Amazon FBA Inventory Reimbursement

Amazon FBA inventory reimbursement covers the entire process from warehousing to delivery and is primarily categorized into the following five categories:

1. Inventory Lost or Damaged During Inbound Reimbursement

Quantity discrepancies due to scanning errors or missing records when goods are received at the Amazon warehouse.

Product damage during transportation or in the warehouse due to improper handling (such as damaged packaging or liquid leakage).

Compensation: Compensation is based on the lower of the product's selling price or cost price.

2. Inventory Lost or Damaged During Storage

Products are lost in the warehouse due to force majeure such as fire or flooding, or due to human error.

Inventory destroyed by Amazon after long-term storage (over 365 days).

Compensation: Up to 100% compensation may be available, depending on the product type and storage period.

3. Compensation for Customer Returns

Products returned by customers cannot be resold due to Amazon's fault (such as packaging errors). Incorrectly categorized returned items lead to incorrect inventory data.

Compensation: Compensation based on the actual value of the returned items.

4. Compensation for Shipping

Items lost during shipping or not updated after the customer signs for them (e.g., "Not Received" complaints).

Damage caused by Amazon's partnered carriers (e.g., UPS, FedEx).

Compensation: Compensation based on the order value or item value.

5. Compensation for Order Removal or Disposal of Inventory

Items lost due to Amazon's operational error when the seller requested inventory removal.

Inventory disposal caused by a recording error that resulted in the actual non-processing of inventory.

Compensation: Compensation based on the value of the removed or disposed items.

Sellers are eligible for Amazon FBA reimbursement when Amazon discovers that their inventory is lost or damaged. However, it's important to note that the FBA inventory reimbursement process isn't automatic—sellers must request reimbursement for the specific circumstances surrounding the loss or damage caused by Amazon's handling.

How can I obtain FBA inventory reimbursement?

The basic process for applying for an Amazon FBA inventory reimbursement is as follows:

1. Log in to Seller Central.

Go to the "Inventory" or "Orders" page and search for any anomalies.

2. Submit a claim.

Submit a case in the "Help" center and attach relevant evidence (such as order number, ASIN, images, etc.).

3. Wait for review and processing.

Amazon typically completes the review and issues the reimbursement within 1–2 weeks.

4. Verify the reimbursement amount.

Reimbursement may be in the form of cash or inventory replacement; verify its reasonableness.

FBA reimbursement issues that sellers are most concerned about

How to efficiently apply for FBA inventory reimbursement?

Regularly review inventory reports: Use the "Inventory Adjustment Report" and "Reimbursement Report" in the Amazon backend to identify anomalies.

Preserve a complete chain of evidence: including purchase invoices, shipping documents, product photos, etc.

Use automated tools: For example, Chinadivision's inventory management system can monitor inventory status in real time and automatically trigger the claim process. Entrust a professional service provider: Chinadivision, an officially recognized fulfillment service provider by Amazon, can assist sellers in organizing documents, submitting applications, and tracking progress, increasing claim success rates by over 30%.

Does Amazon automatically compensate for all losses?

No! While Amazon may automatically initiate compensation in some cases, according to our statistics, over 60% of eligible compensation cases require sellers to proactively file a claim. Amazon's system is not perfect, and many losses require sellers to discover and submit evidence on their own.

What situations are likely to result in Amazon claim denials?

Timeliness: Amazon requires claims to be submitted within 18 months of discovery of the loss (for some types, only 90 days).

Sufficiency of evidence: Proof of product value (such as purchase invoices), logistics tracking information, and warehouse operation records are required.

Avoiding duplicate claims: Multiple claims cannot be made for the same order or inventory; each claim must be unique.

How is the compensation amount calculated?

Amazon typically compensates based on the lower of the product's selling price (excluding shipping and discounts) or cost price. In some cases, such as long-term storage, compensation may be based on a fixed percentage.

Can sellers who ship their own goods enjoy similar compensation?

Self-shipping sellers bear their own inventory risk, but through Chinadivision's third-party fulfillment services, they can store their inventory in professional warehouses and enjoy the same compensation guarantees as FBA.

How does Chinadivision assist with FBA inventory compensation?

Managing FBA inventory compensation is a time-consuming and labor-intensive task that requires expertise and constant attention. As an experienced Amazon fulfillment service provider, Chinadivision offers:

Professional Compensation Management Services

Our dedicated team will comprehensively monitor your account and systematically review all potential compensation opportunities to ensure you don't miss out on any deserved compensation.

Maximize Your Profits

Through our professional FBA management services, we help clients recover an average of 3-5% of their annual sales, often hidden costs that sellers often overlook when managing their own goods.

Inventory loss directly impacts your profits, and professional FBA management can help you maximize revenue and minimize unnecessary losses. Whether you're a B2B business or an e-commerce seller, Chinadivision's Amazon fulfillment services can provide professional support for your business.

Chinadivision's Amazon fulfillment services are designed not only to deliver your products to FBA warehouses efficiently and compliantly, but also to provide the essential data and documentation crucial to recovering your funds. Ready to stop wasting money? Let our experienced team manage your FBA logistics and streamline your FBA inventory reimbursement process.