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Amazon's New Reimbursement Update: What It Means for Sellers

Alex Dawson-Stanley
August 22, 2024
5-10 mins

Attention Amazon sellers! Big changes are on the horizon that promise to make managing your Fulfillment by Amazon (FBA) items smoother and more efficient. Starting November 1, 2024, Amazon will proactively reimburse sellers for items lost in their fulfillment centers, a move designed to save you time and minimize manual processes. This update, along with a revision in the claim eligibility window, is set to significantly impact your operations. Here’s everything you need to know about these upcoming changes.

Proactive Reimbursement: A Game Changer for Sellers

From November 1, 2024, Amazon will automatically issue reimbursements for FBA items that go missing in their fulfillment centers the moment they are reported as lost. This proactive approach means less time spent researching and filing claims manually. Imagine the peace of mind knowing that lost items are being handled without you lifting a finger!

You can track these automatic reimbursements through the Reimbursements report on Seller Central, providing a more seamless experience that saves time and effort.

Benefits of Proactive Reimbursement
Benefits of Proactive Reimbursement:
  • Time Savings: No more digging through reports or tracking down missing items. Amazon will handle the reimbursement process for you.
  • Cost Efficiency: Less administrative work means you can focus more on growing your business and less on operational hassles.
  • Seamless Operations: Improved efficiency in managing your inventory and finances.

However, it’s important to note that while most claims related to warehouse lost, damaged items, and customer returns will be automatically reimbursed, some will still require manual filing. Specifically, if an automatic reimbursement is not issued and you believe your inventory is lost or damaged, you will need to submit a manual claim. Additionally, all removal claims remain a manual process.

Updated Eligibility Window for Manual Claims

To streamline the reimbursement process further, Amazon is updating its eligibility window policy effective October 23. Here’s a breakdown of the new timelines for submitting manual claims:

Amazon Reimbursement Update
Claim Type Details
Fulfillment Center Operations Claim Must be submitted within 60 days after the item is reported lost or damaged.
FBA Customer Returns Claim Can be filed between 60-120 days after the customer refund or replacement date. Claims must not be submitted before 60 days to allow sufficient time for the customer to return the item.
Removal Claim for Items Lost in Transit Must be submitted 15-75 days from the shipment-creation date. Claims must not be filed before 15 days to ensure the shipment can be delivered back to you.
Other Removal Claims Must be filed within 60 days of the shipment being delivered back to you.

Challenges with Updated Timelines

While these updates introduce several benefits, there are also challenges to consider. The updated timelines for claim submissions may be difficult to navigate, especially if you are not accustomed to closely monitoring your inventory:

- Shorter Time Frames: You may find the updated timelines challenging, especially if you are not accustomed to monitoring your inventory closely. This change necessitates a more proactive approach to inventory management and claims filing.

These changes mean you may need to revise your current processes to ensure compliance with the new eligibility windows. With the new policy going into effect soon, it’s crucial to adjust your workflows to prevent missing out on eligible reimbursements.

Final Thoughts

Amazon’s proactive reimbursement and updated eligibility windows mark a significant improvement in the FBA experience. By automating reimbursements for lost items and implementing clear timelines for manual claims, Amazon aims to make inventory management more seamless for sellers.

While these changes require some adjustments, they ultimately provide greater efficiency, saving you time and money. Stay proactive and ensure your processes are updated by October 23 to take full advantage of these new policies.

Stay tuned for further updates and prepare to streamline your FBA operations for an even more successful selling experience on Amazon!

By adapting to these changes, you can ensure a smoother, more efficient operation and focus on what you do best: growing your business. Let’s embrace these improvements and continue to thrive in the Amazon marketplace!

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