So, what exactly are FBA refunds?
If you’re not sure what FBA refunds are, you’ve come to the right place. Amazon could owe you FBA refunds that could help improve your bottom line.
Thanks to Amazon FBA, much of the logistics of inventory management, order fulfillment, and customer service returns are handled for you. Of course, you are paying for this service. And for many Amazon sellers, it’s the most convenient and cost-efficient choice.
But sometimes Amazon makes mistakes. Because, don’t we all? Considering the volume of orders and inventory shipments Amazon handles on a daily basis, sometimes products are incorrectly labeled, damaged, or somehow misplaced. If that happens to any of your products, you are owed FBA refunds.
Here’s the problem, though. Amazon doesn’t always automatically issue FBA refunds. You have to look for anything that happens to your inventory that could qualify for FBA refunds, and then submit appropriate claims, within specified deadlines.
How do you do this? And is it worth actually doing?
Glad you asked. Let’s take a deep dive into what qualifies for FBA refunds and how best to recover them as painlessly as possible.
When Are You Owed FBA Refunds?
You are owed FBA refunds whenever products in your inventory are lost or damaged, improperly returned or charged for returns, destroyed or disposed of, or overcharged for storage fees based on incorrect dimensions.
(By the way, the maximum payment for any one FBA refund is $5,000. So if you have a product, worth more than $5,000, check out purchasing third-party insurance.)
Where do you need to look to find out if any of this has happened with your products?
To start with, go to your Seller Central account and review Amazon’s inventory reconciliation reports to see if any items are missing. Also, check out your Damaged Inventory Report. This report not only lists lost or damaged products but products unaccounted for during the last 30 days.
Did you know that Amazon can destroy and dispose of any product it considers unsaleable without notifying you or asking your permission? Well, it can. So how would you know when this happens? The only way is to continually review your Seller account for destroyed and disposed of items that are no longer inventoried.
Customer returns and refunds are a significant source for FBA refunds, which is not surprising considering Amazon’s generous customer return policy. Problems with returns involve incorrect crediting, refunded items that aren’t returned, wrong or damaged returns, or returns that never should have been accepted.
You are owed FBA refunds for any mishandled or unacceptable returns. How do you know when this happens? Only by carefully reviewing your Seller account for return errors.
Finally, check to see if you are being overcharged for product storage fees. These fees are based on product weight and size, and sometimes Amazon assigns larger product dimensions that result in higher storage charges. How do you find out if you are overcharged?
Compare the manufacturer’s listed product dimensions to those listed by Amazon to look for discrepancies. That’s right, you have to review each of the manufacturer’s dimensions against Amazon’s for each and every product you carry to identify discrepancies.
Is Finding FBA Refunds Really Worth It?
Obviously, this is a time-consuming and tedious process to go through all your records to find possible FBA refunds. And we haven’t even talked about how to correctly document and file timely claims, which also takes a chunk of your time away from actually running your business.
You may think this is a lot of effort that maybe isn’t worth it to recover a few FBA refunds here and there. Well, that’s possible. It’s also possible you are bleeding money.
GETIDA (GET Intelligent Data Analytics), a company founded by Amazon sellers to recover their own FBA refunds, estimates FBA refunds can range anywhere from 1% to 3% of your annual revenues, or $10,000 to $30,000 if your annual revenues are at the million dollar mark.
So finding out if you are owed FBA refunds could potentially be worth it. And without taking a lot of your time, the time of one of your employees, or the time and expense of hiring someone to try to recover your FBA refunds.
Here’s the easiest and most cost-effective way to find out if you are owed FBA refunds and to file claims for these FBA refunds.
GETIDA Gets FBA Refunds
GETIDA’s software will quickly (you get results within days, sometimes hours) review the previous 18 months of your transactions for potential Amazon FBA refunds. You decide if there are enough FBA refunds to warrant submitting claims. Then GETIDA’s crack claims team goes to work to submit documentation to the appropriate departments and follow up on claims to recover your FBA refunds.
How much does this cost? Nothing. That’s right, there’s no cost to find out if you are owed FBA refunds. The only fee is a percentage of the FBA refund claims that are approved by Amazon and that you receive. And the first $400 in FBA refunds are free of charge.
A small price to pay for savings in time and expense to get back a potentially considerable amount of FBA refunds.
Click GETIDA’s “Free Signup” button and get started. There’s no obligation to get peace of mind, not to mention money back from FBA refunds that improve your bottom line.
Mina Elias, “The Egyptian Prescription,” is the CEO of Trivium Group. A chemical engineer turned Amazon seller, he mastered Amazon PPC advertising, investing personally. His insights, shared via YouTube and podcasts, led to Trivium’s global recognition. Today, Mina is a leading figure in the Amazon PPC space.