If you’re an Amazon FBA seller, mistakes such as lost inventory, damaged products, or incorrect fees can affect your bottom line. Thankfully, Amazon provides sellers with the opportunity to recover their losses by filing Amazon reimbursement claims. But how do you figure out the exact amount you’re owed?
Calculating your reimbursement amount requires analyzing your reports, understanding Amazon’s policies, and ensuring that you claim the correct amount based on the Fair Market Value (FMV) of your product. In this guide, we’ll break down how to calculate your reimbursement amount step by step and show how an Amazon FBA reimbursement service can simplify this process for you.
Why does Amazon owe you reimbursements?
Amazon owes sellers reimbursements when errors occur in managing inventory, customer returns, or fees. Here are some common scenarios that may result in reimbursement claims:
- Lost or damaged inventory: Products lost in Amazon warehouses or damaged while under Amazon’s control.
- Returned items not received: Refunds issued to customers for products that were not returned or were returned damaged.
- Overcharged FBA fees: Incorrect fees due to miscalculated dimensions or weights of your product.
- Mishandled removals: Inventory lost or damaged during a removal order or disposal request.
By carefully tracking your account and calculating the reimbursement owed, you can recover funds that could otherwise go unnoticed.
Steps to calculate your reimbursement amount
Follow these steps to calculate the amount you’re owed:
Identify the type of reimbursement claim
The first step is to determine what kind of issue you’re filing for. The type of claim will affect how you calculate the reimbursement. Common claims include:
- Lost or damaged inventory: Items missing or damaged in Amazon warehouses or during delivery.
- Unreturned refunds: Refunds issued for items customers didn’t return.
- FBA overcharged fees: Miscalculated fees based on incorrect product dimensions or weights.
Pull the necessary reports
Next, download the relevant reports from your Seller Central account to identify discrepancies.
- Inventory Adjustments Report: Tracks lost, damaged, or misplaced inventory. Navigate to Reports > Fulfillment > Inventory Adjustments.
- Returns Report: Shows refund activity and returned items, helping you identify unreturned refunds or damaged returns. Navigate to Reports > Fulfillment > Returns.
- FBA Fee Preview Report: Lists the dimensions, weights, and FBA fees charged for each product. Navigate to Reports > Fulfillment > Fee Preview.
- Removal Orders Report: Tracks inventory removed from Amazon warehouses and whether the process was completed correctly. Navigate to Reports > Fulfillment > Removal Order Details.
Look for discrepancies
Once you have the reports, review them for inconsistencies:
- Lost inventory: Compare what you sent to Amazon (via shipment records) with what Amazon reports as received. Missing items may qualify for a reimbursement claim.
- Damaged inventory: Check the Inventory Adjustments Report for items marked as damaged by Amazon.
- Unreturned refunds: Cross-reference the Returns Report with refunded orders to identify cases where customers didn’t return the product or returned it in unsellable condition.
- Overcharged fees: Compare the dimensions and weight listed in the FBA Fee Preview Report with your actual product specifications. If discrepancies result in higher FBA fees, you’re owed reimbursement.
Calculate the reimbursement amount
Amazon calculates reimbursements based on the Fair Market Value (FMV) of the product. This is the average selling price of your product in recent weeks. Amazon will not reimburse you for the full retail price but instead subtract applicable fees.
Reimbursement formula:
Reimbursement Amount = FMV – (Referral Fee + FBA Fees)
Here’s an example:
Product retail price: $50
Fair Market Value (FMV): $40 (based on recent sales history)
Amazon referral fee: $6
FBA fees: $7
Reimbursement amount:
$40 – ($6 + $7) = $27
This means Amazon owes you $27 for this product.
File your reimbursement claim
Once you’ve calculated the reimbursement amount, it’s time to file a claim:
- Go to Help > Get Support > Selling on Amazon.
- Open a new case and select the issue type (e.g., lost inventory, unreturned refund).
- Provide all necessary details, such as SKUs, ASINs, order IDs, and calculated reimbursement amounts.
- Attach supporting documents, such as shipment records, screenshots from reports, or photos (if applicable).
Amazon will review your claim and issue reimbursement if the request meets their policies.
Challenges sellers face when calculating reimbursements
While the steps above outline the process, many sellers face challenges, such as:
- Time-intensive manual work: Reviewing reports, identifying discrepancies, and filing claims can take hours—especially for sellers with large catalogs.
- Strict deadlines: Claims must be filed within specific timeframes (e.g., 18 months for lost inventory, 90 days for returns). Missing these deadlines means losing reimbursement opportunities.
- Complex calculations: Determining FMV and subtracting Amazon’s fees can be confusing, especially if you’re unfamiliar with their policies.
- Policy updates: Amazon frequently updates its reimbursement policies, which can lead to claim denials if sellers aren’t up to date.
