Effective November 1, 2024, Amazon's new Fulfillment by Amazon (FBA) reimbursement policy will streamline the process for lost and damaged items by issuing automatic reimbursements.
This update aims to save sellers time and money by minimizing the need for manual claims. Additionally, from October 23rd, the new policy introduces reduced eligibility windows for filing claims, making it crucial for sellers to understand and adapt to these changes promptly, or risk losing out on hidden revenue.
Proactive Reimbursements for Lost Items: Amazon will now automatically issue reimbursements as soon as an item is reported lost or damaged by the fulfillment center.
Manual Claim Submission Continues: While some reimbursement claims will be handled automatically, sellers will still need to file manual claims for some situations, such as removal claims, mishandled returns, and shipment issues.
Reduced Eligibility Windows for Claims: The timeframe for filing reimbursement claims has been reduced, requiring sellers to act more quickly to secure their refunds.
The updated reimbursement policy has significant implications for sellers. One major impact is on seller profits and hidden revenue. With the new policy, there is a looming loss of up to 16 months of reimbursements, which could equate to 5-15% of a seller's profits. This makes it imperative for sellers to get their reimbursement claims in order before October 23rd to ensure they do not miss out on refunds.
The policy changes affect various types of claims differently:
Lost and Damaged Items: The claim window is now 60 days, down from 18 months.
Customer Return Issues: The claim window has been reduced from 18 months to 2 months (60-120 days).
FBA Removal Orders: Claims must now be filed within 2.5 months, compared to the previous 18-month window.
Understanding these new timelines and adjusting processes accordingly will be critical for maintaining reimbursements.
Amazon’s new policy includes proactive reimbursements for lost and damaged items, meaning sellers no longer need to manually file claims for most cases.
How It Works: As soon as an item is reported lost or damaged by the fulfillment center, Amazon will automatically issue a reimbursement. This simplifies the process for sellers and ensures quicker compensation for lost and damaged items.
Monitoring Reimbursements: Sellers can track their reimbursements through the Reimbursements Report on Seller Central. This report provides a detailed overview of all issued reimbursements, helping sellers keep track of their claims and refunds.
Despite the proactive approach, there are still scenarios where sellers need to file manual claims:
Scenarios Requiring Manual Claims: Removal claims and cases missed by Amazon’s automation.
Steps to File a Manual Claim:
Identify the Issue: Reconcile the discrepancies in your account's reports.
Gather Necessary Documentation: Collect all relevant information and evidence.
Submit the Claim: File the claim through Seller Central, following Amazon’s guidelines.
Want to get the most out of your reimbursements and cut losses? Here's how:
Conduct Monthly Audits: Regularly audit to identify and address discrepancies promptly.
Staying Informed About Policy Updates: Keep up-to-date with Amazon’s policy changes to ensure compliance and take timely action.
Utilizing Professional Tools for Reimbursement: Leverage tools and services that help streamline the reimbursement process and identify missed claims.
With reduced claim windows, sellers must act immediately to avoid missing out on reimbursements.
Steps to Secure Refunds Before Deadlines:
Step 1: Immediately audit discrepancies over the past 18 months.
Step 2: Raise and track claims through to successful reimbursement.
Step 3 (Optional): Use a professional reimbursement service to do steps 1 and 2 for you.
Refundify offers comprehensive services to help sellers navigate the new FBA reimbursement policy:
Services: Refundify provides fully managed FBA auditing and reimbursement services, saving you time and money.
Industry Expertise and Experience: Refundify employs ex-Amazon reps with an industry-leading recovery rate of 98%.
Compliance: Being fully TOS compliant, Refundify works with Amazon as an authorized member of the Selling Partner Appstore.
Refundify offers a no-risk, high-reward service model:
No-Win, No-Fee: Sellers only pay if Refundify successfully recovers reimbursements.
Competitive Commission Rates: Transparent and competitive rates that ensure sellers get the best value.
Free Suspended Listing Reinstatements: Worth $6,788, offered as part of Refundify’s comprehensive service package.
Amazon's new FBA reimbursement policy requires sellers to be vigilant and proactive. By understanding the changes, adopting best practices, and leveraging Refundify’s expertise, sellers can secure their refunds and minimize losses.
To avoid missing potential refunds, follow these three simple steps before October 13th (we need time to recover your funds):
Sign up for Refundify: https://app.refundify.io
Get a free audit and set up payment to start the claims process.
Receive your money before the deadline!
This is your last chance to secure your refunds before the new policy takes effect. Don’t wait any longer!