In 2020, Amazon generated 80.46 billion U.S. dollars in third-party seller service revenues. – Statista With numbers like this, it’s easy to understand how popular Amazon FBA has become amidst the global rush to online selling.
In previous years starting an Amazon business could be accomplished through a minimal amount of capital. Nowadays, startups on Amazon will have a better chance at success with a capital cushion to support them. Navigating competition on the platform and establishing brand awareness are two considerations that must be made in 2021’s online climate.
Cash flow is everything to an Amazon business, and so are fees and Amazon FBA reimbursements.
Sellers rely on Amazon to navigate payments and reimbursements effectively. But, considering the sheer amount of transactions the online giant sees, it’s pretty reasonable to expect that mistakes will happen.
If sellers aren’t correctly tracking these errors and omissions, they can be out hefty fees without any chance of reimbursement.
Let’s dive into some of the reimbursements you could be sitting on as an Amazon seller. We’ll help you understand how GETIDA’s reimbursement solution software can save you thousands of dollars as you scale your business.
A Brief Background on Amazon FBA
Amazon FBA, or Fulfillment By Amazon, is a sales option through the Amazon marketplace. The beauty of Amazon FBA is that Amazon is responsible to prep, pack, and ship products on a seller’s behalf for a fee.
In addition to the robust shipping FBA offers, Amazon provides customer care, manages the payment, and processes returns. Through the FBA model, an Amazon seller can manufacture products and build a brand while not handling inventory or dealing with customers.
What are Amazon FBA Fees?
Amazon FBA fees are what Amazon charges each seller for the fulfillment and storage service as outlined above. Fees are determined by the size and weight of products and are deducted from a seller’s earnings. Here is an outline of updated FBA fees as of June 2021.
What are Storage Fees?
In addition to FBA Fees, Amazon charges sellers storage fees. Storage fees are fees to maintain the cost of storing inventory and charged monthly or long-term.
Amazon Reimbursements
An Amazon business can lose money in areas of reimbursements if they are not well informed or not properly managing reimbursements as a whole.
Reimbursements are monies owed to Amazon sellers for errors, omissions, and damages on Amazon’s behalf.
Amazon FBA Audits
Below you will find the complete list of Amazon FBA reimbursements your account may qualify for. At GETIDA, we audit each section of an account to maximize reimbursements, leaving no stone unturned, or in this case, no dollar unaccounted for.
The benefits of GETIDA are many, but here is a brief overview:
- Maximize Returns
- Alleviate Cash Flow Problems
- Free up a Seller’s Time & Productivity
- Backdate to 18 months of History
- Monitor the Status of Claims
- Fast & Convenient
If you’ve ever attempted to file reimbursements for your account, or if you’re a large agency managing massive accounts, you know the pain of the inner workings of Amazon.
The process can be slow and tedious, and you or your team can make mistakes. These errors, unknowingly, can put your account in harm’s way, as Amazon takes reimbursement claims seriously. It’s best to leave reimbursement filing to our experts.
Here are the audit types you can expect from GETIDA:
Return Audits
- Returns Reimbursement – A reimbursement was never paid out.
- Returned Not Refunded after 45 Days – The customer received a refund, but they never returned the item.
- Return Overcharge – The customer was refunded more than they were initially charged.
- The wrong Item Returned – A customer sent the wrong item back, and Amazon accepted it.
- Damaged Returns – The product was returned damaged.
- Return After 60 Days – A customer was granted an exception after the typical return window.
Warehouse Audit
- Receiving Discrepancy – Inventory was improperly received or miscounted from inbound shipments in the past nine months.
- Lost – Inventory was lost in the warehouse.
- Damaged – Inventory was damaged in the warehouse.
- Destroyed – Inventory was destroyed without the seller’s permission.
Accounting Audit
- Credited more than Charged – The account was billed more than the initial order amount.
- Seller Fee – The seller was wrongfully charged for weight or dimensions of inventory.
- Unfair Reimbursement – The reimbursement the seller received was not correlative to lost value.
- Chargeback not Refunded – A consumer received a chargeback, but the seller was not reimbursed.
- Reimbursement Error – Reimbursement was issued, but the seller never received the money.
- Adjusting Balance Sheet – Results of our auditing data and financial recovery services are applied to the balance sheet and profit and loss statement adjustments for maximum accuracy.
Available Inventory Level Audit
- Inventory Replacement – A returned item is said to be back in your inventory but is not.
- Independent Inventory Analysis – GETIDA monitors inventory levels independently to ensure that no inventory goes missing.
- Missing Inventory – The seller was reimbursed for less inventory than what was supposed to be reimbursed.
Shipping Audit
- Inbound Shipping Damaged by Carrier – While shipping FBA, the carrier damaged inbound inventory.
- Damaged Return by Carrier – Inventory was returned by the customer and damaged during the return by the carrier.
- Removal Order Damaged or Lost – The removal order was damaged or lost in transit.
- Multi-Channel – Items sold on different marketplaces were said to be delivered, yet the consumer never received the product.
Seller-Fulfilled Audit
- Customer Returned Damaged Item – Customer sent back an item damaged by the customer or by the carrier.
- Customer Issued Return / Not Received – The customer never sent back a granted return item.
Summary
When a seller agrees to Amazon’s terms of services, they are bound by these terms; similarly, Amazon is bound by these terms. If a seller experiences any one of these issues listed above, they may qualify for reimbursement.
It seems simple, right? Not so fast.
Unfortunately, sellers are task saturated and aren’t always aware of what reimbursements they qualify for, nor do they understand how to file for reimbursements appropriately.
Notwithstanding a lack of insight, sellers with large accounts and multiple SKUs can find themselves lost in the shuffle of inventory and miss out on opportunities to get their money back.
Conclusion
Amazon offers a unique opportunity for those just starting or experienced veterans. Both types of sellers need to be responsive to their finances and businesses’ inner workings. Understanding Amazon FBA fees and reimbursements are no exception.
Offer
Get $400 in Free FBA reimbursements with GETIDA. Claim Offer 👉 here.
Sources:
Figure 1 Amazon.com
Statista – Amazon generated 80.46 billion U.S. dollars in third-party seller service revenues.
