If you use Fulfillment by Amazon (FBA), you're trusting Amazon to store, handle, and ship your inventory. While Amazon's fulfillment network is impressive, mistakes happen—and those mistakes can cost you thousands of dollars if you don't actively monitor and claim reimbursements.
The Hidden Problem: Lost and Damaged FBA Inventory
Studies suggest that Amazon sellers lose 1-3% of their FBA inventory value to various issues. For a seller doing $500,000 annually through FBA, that's $5,000-$15,000 in potential reimbursements. Most sellers never recover this money because they don't know it's owed to them.
Common Reimbursement Scenarios:
- • Inventory lost in Amazon warehouses
- • Items damaged by Amazon employees
- • Customer returns never added back to inventory
- • Incorrect weight/dimension fees charged
- • Missing inbound shipments
- • Destroyed inventory without authorization
- • Customer refunds issued but items not returned
Understanding Amazon's FBA Reimbursement Policy
Amazon's FBA Lost and Damaged Inventory Reimbursement Policy states that they will reimburse sellers for items lost or damaged while in their possession. However, there are important limitations:
- 18-month lookback: Claims must be filed within 18 months of the loss
- Documentation required: You need proof of the loss and item value
- Wait periods apply: Some claims require waiting 30-60 days before filing
- Not automatic: You must actively identify and report discrepancies
How to Audit Your FBA Account
Step 1: Review Inventory Adjustments Report
This report shows all changes to your FBA inventory, including adjustments for lost, damaged, or found items. Download it from Reports > Fulfillment > Inventory Adjustments.
Key Adjustment Codes to Watch:
- • M (Misplaced): Amazon lost your inventory
- • D (Damaged): Item damaged at fulfillment center
- • E (Expired): Removed due to expiration
- • F (Found): Previously lost item found
Step 2: Reconcile Inbound Shipments
Compare what you shipped to Amazon against what they received. Check the Shipment Summary page for each shipment and look for:
- • Units shipped vs. units received
- • Items marked as "receiving" for extended periods
- • Shipments with quantity discrepancies
Step 3: Audit Customer Returns
Returns are a major source of unreimbursed losses. Track these scenarios:
- ✓ Customer refunded but never returned the item
- ✓ Item returned in different (worse) condition
- ✓ Wrong item returned by customer
- ✓ Returned item not added back to sellable inventory
Step 4: Check Fee Discrepancies
Amazon calculates fees based on product dimensions and weight. If they measure incorrectly, you overpay on every sale:
- • Review Fee Preview Report for unusual charges
- • Compare Amazon's dimensions to your actual product specs
- • Request remeasurement for incorrectly sized items
Filing Reimbursement Claims
Manual Claims Process
For each discrepancy you identify, you'll need to open a case with Seller Support:
1. Gather Documentation
Transaction IDs, shipment IDs, FNSKU, quantity, and proof of loss
2. Open a Case
Go to Help > Get Support > Selling on Amazon > Fulfillment by Amazon
3. Provide Clear Details
Be specific about what happened, when, and the value you're claiming
4. Follow Up Persistently
Don't accept automated denials—escalate if necessary
Common Claim Denials and How to Appeal
Amazon often denies claims initially. Don't give up. Common denial reasons and responses:
- "Reimbursement already issued"
Request the reimbursement ID and verify it in your reports
- "Outside claim window"
Provide evidence of when you first discovered the discrepancy
- "Insufficient documentation"
Ask specifically what additional documentation they need
- "Item found in inventory"
Request proof of the found inventory with FNSKU and condition
Best Practices for Ongoing Recovery
- 1. Audit your account monthly, not annually
- 2. Keep detailed records of all shipments with photos
- 3. Use unique FNSKUs for each product variation
- 4. Track all open cases and follow up regularly
- 5. Consider reimbursement software for large catalogs
- 6. Set calendar reminders before the 18-month deadline
When to Get Professional Help
While smaller claims can be handled independently, consider professional assistance if:
- • You have a large catalog with many potential claims
- • Claims are repeatedly denied without clear reason
- • You don't have time to audit and file claims regularly
- • The disputed amount is substantial ($5,000+)
- • Amazon is unresponsive to your escalations
Missing FBA Inventory? Let Us Help.
Our team has recovered millions in FBA reimbursements for Amazon sellers. We'll audit your account and fight for every dollar you're owed.
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