FBA reimbursements can be useful in turning minus into plus. Especially for Amazon sellers that got negatively affected by the Coronavirus crisis. Unlocking FBA reimbursements on Amazon is a practical way that can assist many FBA sellers in getting more funds back into their business. Thus, helping sellers survive the crisis with minimal damages.
FBA Reimbursements – Background
Amazon provides an 18-month window period for sellers to audit all the FBA related transactions. You are allowed to open Amazon Seller Support cases to get reimbursements for discrepancies that are categorized as eligible for reimbursement under Amazon’s FBA reimbursement policy. There is a myriad of financial and logistical discrepancies that an FBA seller can encounter.
Statistics
The data of GETIDA, suggests that the discrepancy rate of products shipped into FBA is between 1%-3%. This means that for every 100 units shipped to FBA, between 1-3 units might get affected. On the flip side, this data suggests something truly amazing. This means that Amazon does an excellent job of handling the inventory of third-party sellers between 97%-99% of the time. This is considering they are dealing with a colossal scale of tens of billions of dollars worth of inventory. Ask any wholesaler/retailer if they would be happy with such an accuracy and precision level when dealing with inventory, and you will hear an overwhelming YES.
Nevertheless, if you are an Amazon FBA seller generating $1 million a year in FBA sales, your 1%-3% discrepancy rate can range between $10K-$30K in actual dollar value which is significant by any degree. It is your duty as a seller to do everything you can to maximize your eligible FBA reimbursements.
FBA Discrepancy – Reasons
The FBA inventory of Amazon sellers might experience a few logistical discrepancies. A common discrepancy includes inventory lost during the initial FBA inbound receiving. Once in the FBA center, some inventory can get lost, damaged, destroyed, or disappear. A major financial discrepancy reason that helps with cost reduction once resolved, is when Amazon incorrectly overcharges sellers on FBA pick and pack fees when shipping FBA orders to customers.
The reason is typically due to incorrect measurement of the weight and dimensions in Amazon’s data. After 90-days, the eligibility for this type of FBA reimbursement expires. Therefore, today more than ever before, Amazon sellers need to keep auditing their Amazon FBA transactions every 90-days at the very least.
Turning Minus Into Plus
Amazon sellers must secure the maximum FBA reimbursements that they are eligible for under Amazon’s terms and conditions. If they don’t, they experience a double loss. The first type of loss is the cost of inventory. Meaning that cost a seller paid to source an item. The second type of loss is the loss of profits. The reason is that Amazon essentially “buys” the affected inventory from the seller as if the product sold on the platform. For most Amazon sellers, the price of selling products on Amazon usually includes a profit.
Therefore, if you recover the maximum FBA reimbursements you are eligible for, you will shift the double minus momentum into a double plus momentum. In this case, you will be able to enjoy the added liquidity of cash that you will receive from the FBA reimbursements that will recover your cost of goods and your profits.
Take Action – Unlock Funds
Whether you have never audited your account, or already have an Amazon FBA auditing process put into place, or just rely on Amazon to auto-reimburse your account, you owe it to your business to reach out to an Amazon FBA auditing service such as GETIDA. The reason is that we charge a recovery fee only from successful FBA reimbursements we secure. If no reimbursement secured, there is no cost. Every very dollar of recovery is a pure value add for your business, especially in these difficult times.
In fact, signing up with GETIDA takes just a few minutes and you will get instant access to a free dashboard that will provide you with data analytics and visibility into your Amazon account, as well as an estimate of how much FBA reimbursements potential you can recover on your account. If you wish to unlock these FBA reimbursements, you can enable GETIDA’s FBA recovery service and reap all the benefits of maximizing your eligible FBA reimbursements.
Summary
We hope that you find this article helpful in understanding the potential benefits of maximizing your FBA reimbursements during COVID-19. If you have any questions, feel free to reach out to us at support@getida.com.
Good luck, and stay safe and healthy out there!
If your business has been negatively affected, you can reach out for financial recovery. If you need help securing FBA reimbursements, click on the Sign-Up link for GETIDA below:
