5 Fundamentals of FBA Reimbursements

Here are the 5 fundamentals of FBA reimbursements that can be helpful in turning a loss in your Amazon business into a profit. Especially for Amazon sellers that are in need of access to more money. Maximizing your available FBA reimbursements is a proven way that assists many Amazon FBA sellers in growing their profitability.

FBA Reimbursements – How much money will you unlock?

Potential Recovery

The data of the technology company GETIDA suggests that the discrepancy rate of FBA inventory can range from 1% to 3% from the annual FBA sales of Amazon sellers. This means that for every 100 inventory units shipped to FBA, between 1 to 3 units will get affected. Types of issues can include inventory that gets lost, damaged, destroyed, disappears, disposed or overcharged with FBA fees.  

This means that Amazon does an amazing job of handling the inventory of third-party sellers between 97% to 99% of the time. This is a remarkable achievement considering Amazon is dealing with a monstrous scale of tens of billions of dollars worth of inventory for third-party sellers. 

Nevertheless, if you are an Amazon FBA seller generating $1 million a year in FBA revenue, your 1% to 3% discrepancy rate can range between $10,000 to $30,000 which is significant. It is your responsibility as a seller to maximize the recovering of all your available FBA reimbursements. 

If the topic of Amazon FBA auditing and reimbursements is shocking news to you, you better take action as soon as you finish reading this article. There is probably lots of money available for you to recover. We are confident that you will put the newly recovered funds to good use in growing your Amazon business.  

Expiration Dates

Amazon provides an 18-month window period for sellers to conduct an FBA audit for most FBA related transactions. Sellers can open cases for any eligible discrepancies and get reimbursements under Amazon’s FBA reimbursement policy. After the allowed time frame for filing a claim expires, Amazon sellers have effectively lost a major opportunity to recover their money. It is highly recommended for sellers to always maximize their available claims by filing cases in a timely manner and with no delay. 

Types of Issues to Claim

A common logistical discrepancy includes inventory that gets lost during the initial FBA inbound receiving. This type of FBA lost inbound claim is limited to 9 months in the US and 6 months in the UK. In addition, once your inventory is in the FBA center, the FBA inventory can also get lost, damaged, destroyed, disposed of, or simply disappear. 

A major financial discrepancy that can reduce FBA fees once it is fixed, is when Amazon incorrectly overcharges sellers on FBA pick and pack fulfillment fees.

The reason is due to the incorrect information on the weight and dimensions in Amazon’s data regarding your ASIN (Amazon Standard Identification Number). Amazon allows a time frame of only 90-days for providing such FBA reimbursements. Therefore, today more than ever before, Amazon sellers need to keep auditing their Amazon FBA transactions at least every 90-days for this type of issue. 

Opportunity for Sellers

Amazon sellers need to maximize the FBA reimbursements that they are eligible to receive under Amazon’s terms and conditions. If they don’t, they will effectively experience a double loss. 

The first loss is the cost of inventory investment. Meaning the cost a seller pays to source an item. The second loss is the loss of profit. The reason is when a seller gets reimbursed by Amazon, Amazon is essentially “purchasing” the affected inventory from the seller as if the product sold on Amazon’s platform. For most Amazon sellers, selling products on Amazon includes a healthy profit.

Therefore, if you recover the maximum FBA reimbursements that are available for you, you will swiftly shift the double loss into a double win. The FBA reimbursements that recover your cost of goods AND your profit effectively turns a business weakness into a strength.

Once the positive momentum is on your side and you are flushed with the funds of FBA reimbursements. You can then use the recovered funds to fuel your business growth by launching more products on the marketplace, investing more in PPC advertising campaigns, offsetting financing costs, and much more. 

You Can Take Action 

Whether you have never audited your account for FBA discrepancies, or you already have a certain Amazon FBA auditing process put into place, or just rely on Amazon to auto-reimburse your account, you owe it to your business to get the maximum reimbursements that are available to you.

To make sure you are recovering everything you are owed, you can reach out to an Amazon FBA auditing service such as GETIDA. It is free to join and set up your Amazon account with GETIDA, the reason is that they charge a recovery fee only from successful FBA reimbursements. If no reimbursement is secured, there is no cost. Every dollar of recovery is a pure value add for your business, especially during challenging times.

In fact, signing up with GETIDA takes about 4 minutes and you will get instant access to a free dashboard that will provide you with data analytics and visibility into your Amazon account. Your GETIDA dashboard will also give you a free estimate of how much FBA reimbursements potential you can recover on your account. 

If you wish to unlock these FBA reimbursements, you can then upgrade your account to the GETIDA FBA recovery service, and enjoy all the benefits of maximizing your FBA reimbursements.

Special Offer: GETIDA has partnered with Payability to help FBA sellers get access to more funds. They are offering you, the seller, $400 in Free FBA Reimbursements, simply click the offer to activate this opportunity, and take your FBA auditing to the top level. 

Yoni Mazor
Yoni is the COO & Co-Founder of GETIDA. Yoni began developing GETIDA after successfully operating a $20 million yearly Amazon FBA business, selling fashion brands internationally. GETIDA specializes in eCommerce discrepancy analytics and consulting. By utilizing data visibility technology, GETIDA focuses on discovering and managing financial and inventory-related discrepancies with billions of dollars of transactions managed annually. Yoni also comes with military intelligence experience, having served in the IDF Special Navy Intelligence.

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