Ask Amazon for your cash!

It really doesn’t matter where you are in the mix ie a startup or 7 figure seller, it’s all about cash flow.  

Your account reconciliation is a good starting point. This will help you zero in on some of the key dynamics of your business.

FBA fees are the low-hanging fruit but can be a nightmare to reconcile. There are so many moving parts, particularly around refunds.  

Many sellers underestimate the cash they could be putting back in their pockets by focusing more attention on FBA refunds.

We turned to GETIDA who are experts in this area to explain this in more detail.

What exactly are FBA refunds?

Amazon is a huge company with a reputation for efficiency. However, even they make mistakes that can impact your bottom line. When these errors occur they are referred to as discrepancies, and little by little, they add up to losses for your business.

As an Amazon seller, you can file claims for FBA refunds. However, if you don’t file your claims on time, or if you fail to notice a discrepancy, you get nothing. Any entrepreneur should aim to avoid such a loss.

Many situations can lead to an FBA reimbursement, but there are four very common scenarios. Return processing errors, seller fee overcharges, damaged products, and lost/discarded products. Exploring each of them in detail…

Returns Processing Errors

Customer returns are an inescapable part of doing business. Usually, this process is effectively managed by Amazon’s infrastructure, but more often than you might realize a discrepancy occurs. This is when you should be getting your money back.

There are a variety of ways customer returns can lead to an FBA refund, but some common situations include:

Amazon opted to grant a customer refund beyond the 60-day window.

Amazon provided a refund, but the product was returned in a damaged state.

A customer was given back more money for an item than originally paid.

Money was returned to the customer, but the product was never returned to the Amazon warehouse.

The customer returned the wrong item but was granted a refund anyway.

In each of these cases, you could be eligible for an FBA refund. However, these types of discrepancies have a strict time frame to file, so keep an eagle eye on your records.

Seller Fee Overcharges

Every Amazon seller is familiar with seller fees and Amazon usually charges these correctly. However, there are several occasions when this might not be the case. 

For example, Amazon might use inaccurate product dimensions or weights when charging for shipping. This is increasingly common with products shipped with an outer plastic bag. If Amazon puts this through their cubiscan and a corner is sticking out, the calculation is affected. No, they are unlikely to notice and tuck the bag in.  As a result, commission fees and storage fees might be miscalculated. 

Remember to have your product’s accurate measurements on hand as you prepare to file for any FBA refunds regarding product measurement errors.

Damaged Product Overcharges

Amazon processes a staggering number of products in its fulfillment centers so of course mistakes are made. A product can become the casualty of such an error on its way to Amazon’s warehouses, during its time at the warehouse, or even when it is shipped to a customer. This makes it more important than ever to review the Damaged Inventory Report which you can find in your Seller Central account. 

The Damaged Inventory Report will identify damaged products and when this damage was discovered. This report is also where you will find documentation on any products that have been missing for at least 30 days. This report is a crucial resource when filing for FBA refunds.

Lost/Discarded Products

Products do get lost from time to time as they are moved around within Amazon’s network. Amazon also holds the right to throw away or destroy your products and is not required to obtain your permission as a seller. For this reason, you might not even realize when items from your inventory have been disposed of.

It pays to diligently check your Seller Central account to discern the status of your inventory. If you fail to keep up with these updates, you might find out too late that your products have been removed.

Now that you understand how FBA refunds work, it’s time to consider how your business will approach getting them done. Depending on the needs of your business, there are a few options to choose from.

Complete the FBA refund claims yourself

Some sellers might choose to take care of their own FBA refunds, especially if they are just starting out. Keep in mind that you must be prepared to do a comprehensive audit of your records in order to get back all the cash that Amazon owes you. Factor in your own time as a resource and consider how this task will fit in with your other business obligations.

Hire a virtual assistant

As your FBA business grows, you might explore hiring outside help for specific tasks. This can be a great way to delegate and free up some of your own time. When choosing a virtual assistant to complete your FBA refund claims, it is important to choose someone with experience. Finding someone you can trust is vital since this individual will have access to your Seller Central account.

GETIDA FBA refund solutions 

Enlisting the services of a company that specializes in FBA refunds means you can rest assured that your claims will be expertly handled. A number of specialists are available, but GETIDA FBA refund solutions are unmatched in the industry. While you attend to the other needs of your business, GETIDA provides a full audit of your Seller Central account, finding any discrepancies. GETIDA then takes care of any necessary communications with Amazon as the claims are filed, working until you get back all the money you are owed. 

The FBA refund process can seem overwhelming, so if doing it yourself it’s critical that you do this at least monthly. This is your cash sitting within the Amazon system. Once the deadline for lodging a claim has passed, it’s gone forever. 

If you decide to use GETIDA, this link GETIDA ZonSupport Deal will give you $400 in free FBA reimbursements. 

As always, ask us anything. If we don’t know the answer, we’ll know someone who does!