Overview

Amazon provides sellers with detailed reimbursement reports that track every credit issued for inventory that was lost, damaged, or mishandled within the FBA fulfillment network. Understanding the different reimbursement types listed in these reports is essential for sellers who want to reconcile their accounts, identify recurring issues, and ensure they are being properly compensated for inventory problems.

Key Points / What Sellers Need to Know

• Customer Return Reimbursements - When a buyer returns an item to a fulfillment center and the unit is damaged or lost during the return process through Amazon's fault, sellers receive a reimbursement rather than having the unit restocked.
• Exception-Based Reimbursements - Some credits are issued on an exception basis, covering situations that fall outside standard reimbursement policies but where Amazon acknowledges responsibility.
• Warehouse Damage Reimbursements - Inventory that is damaged or disposed of while stored at an Amazon fulfillment center qualifies for reimbursement when the damage is attributed to Amazon's handling.
• Fee Correction Reimbursements - If Amazon incorrectly charges fees on a product, sellers receive a reimbursement to correct the overcharge.
• Inbound Shipment Reimbursements - Units that go missing during the inbound shipping process to Amazon's warehouses are eligible for reimbursement after investigation.
• Reimbursement Reversals - Amazon may claw back previously issued reimbursements if the original credit was issued in error or if the missing unit is subsequently found and returned to the seller's inventory.

How FBA Reimbursements Work

Amazon's reimbursement system is designed to compensate sellers when inventory is lost or damaged while under Amazon's control. This includes every stage of the fulfillment process, from inbound receiving at the warehouse through storage, picking, packing, shipping to customers, and handling customer returns. When Amazon determines that it was at fault for a loss or damage event, a reimbursement is automatically generated and reflected in the seller's account. Each reimbursement entry in the report includes a type classification that tells the seller exactly why the credit was issued, making it easier to track patterns and spot potential problems with specific products or shipments.