Amazon FBA Fees Reimbursement
It’s great to be an Amazon FBA seller, except when you are charged Amazon FBA fees in error and don’t even know about it. Sometimes these Amazon FBA fees go unnoticed for months at a time. And when you do discover you’ve been charged Amazon FBA fees in error, it’s not always the easiest process to get your money back.
How do you recover your Amazon FBA fees when this happens?
Let’s take a look at:
- How errors in Amazon FBA fees occur
- How to recover Amazon FBA fees
- How to discover Amazon FBA reimbursements and improve your Amazon business.
How Errors in Amazon FBA Fee Occur
There are a number of reasons why you are overcharged Amazon FBA fees.
- Incorrect fulfillment fee
- Automatic reimbursements never sent
- Incorrect refunds
- Inventory damaged or lost or incorrectly counted at Amazon fulfillment center
- Missing unfillable unit
- Overcharged referral fees
Let’s take a look at each of these common Amazon FBA fee errors.
Incorrect Fulfillment Fee
Incorrect fulfillment fee (what Amazon charges you to fulfill the order plus shipping, also called a pick and pack fee) based on incorrect weight and size is one of the more costly Amazon FBA fee errors. You get charged more for larger and heavier products. This is fine except when your product isn’t as large or heavy as you are charged.
Unfortunately, this is an error that frequently happens and goes undetected for months and even years. And if it happens for more than one product category, it can really amount to a lot of money. Which Amazon isn’t likely to discover and let you know about.
To help avoid this, particularly if you have a large number of products, request a cubiscan at least twice a year for each product.
Failed Automatic Reimbursements
Amazon claims it automatically discovers Amazon FBA errors and corrects them. Except it often doesn’t. One example where errors frequently occur is when a customer requests a refund, Amazon pays it, but the product is never actually returned. Amazon should recharge the customer and reverse the refund, but this doesn’t always happen. To avoid this overcharge, keep careful track of your returns.
Similarly, Amazon sometimes issues a larger refund than the actual purchase cost. which also happens frequently. Again, you need to carefully monitor your returns to ensure you pay the right refund for items that are actually returned.
Damaged, Lost, or Incorrect inventory
Accidents happen, and items sometimes are damaged or lost at the warehouse, or inventory is recorded incorrectly. Amazon should reimburse you for damaged or lost inventory. Except they don’t always. Similarly, returns are not always properly credited to your inventory, but to another Amazon seller. If you are selling a lot of products, this can happen more often. This emphasizes the need for accurate inventory control software.
Unfillable Inventory Missing
Another issue related to fulfillment center actions is when a returned item’s packaging is opened, but the product is undamaged and is supposed to go into your unfulfillable inventory. Sometimes these items are misfiled somewhere, but not in your unfulfilled inventory or your regular inventory or sent back to you. That’s an Amazon error. You should receive an Amazon FBA fee reimbursement.
Referral (Commission) Fee Overcharge
Amazon charges you a referral fee, also called a commission fee, for using its ecommerce platform to market and sell your products. It’s a cost of doing business and well worth it to take advantage of the Amazon brand. However, you need to check if your product is in the right category. These fees range from 6% to 45%, so if your product is assessed at the higher end when it should be at the lower end, the overcharge piles up over time.
How to Get Your Amazon FBA Fee Reimbursement
While Amazon is noted for making it easy for customers, it’s not always as easy for Amazon sellers to get Amazon FBA Fee reimbursement. For the most part, it’s up to you to keep track of your inventory and look for discrepancies and overcharges.
If you don’t have a lot of SKUs, you can file for an inventory adjustment on the Fulfillment pane of Amazon Seller Central, generate a report and open a case for reimbursement. But if you have a lot of SKUs, this is time-consuming and cumbersome.
Fortunately, there is a better way.
Auditing Software to Track Amazon FBA Fee Reimbursement
Unrecovered Amazon FBA fee reimbursement can average as much as 3% of your annual revenue. The bigger your business, even 1% of overcharges that go unnoticed can represent a significant unnecessary expense that impairs profitability.
GETIDA auditing software keeps track of your Amazon FBA inventory transactions, refunds, seller data analytics, and FBA reimbursements easily and clearly. We maintain an agreeable, established relationship with Amazon, and our dedicated case managers draw on that relationship when filing and following up on FBA reimbursement claims on your behalf.
You can join GETIDA for free and quickly discover the FBA reimbursements data on your Amazon account. Plus, get free consulting on how to improve your Amazon business.
Get $400 in Free Amazon Seller Refunds with GETIDA.