Fulfillment by Amazon (FBA) is a service that allows Amazon sellers to outsource their order fulfillment, customer support, and returns. This service is not provided for free. Sellers need to pay Amazon fees for the delivery, stocking, warehousing, and logistics.
When a business decides to get FBA services, it will send products to Amazon. Then when a customer purchases a product, Amazon will be responsible for picking it from Amazon’s Fulfillment Center, packing it, delivering it to the customer’s doorstep, and processing any returns.
Of course, Amazon does not provide this FBA service for free. There’s a certain fee sellers need to pay Amazon for warehousing, delivery, and logistics.
Amazon has thousands of employees working in their warehouses, so errors may occur, but the good thing is that you can get compensated for these mistakes.
What are the top 10 Amazon reimbursable errors you need to know about?
Lost or Damaged Item by the Inbound Shipper
What if you send items in perfect condition, but they arrive damaged at the Amazon warehouse? It’s very frustrating. Obviously an error of the inbound shipper, but does Amazon make up for this? The answer is yes!
By visiting your Amazon Seller Central Dashboard, you can easily identify which or how many items were damaged by the shipper on their way to the warehouse.
Incorrectly Deducted Stock
You can track inbound inventory to Amazon warehouse. The Seller Central dashboard allows you to verify the product has been received. Occasionally, Amazon may deduct your stock after the shipment is received. Look for discrepancies, and file a reimbursement claim if needed.
Lost or Damaged Item in Amazon’s Warehouse
The multiple Amazon warehouses are large, with hundreds or thousands of Amazon employees. In such an environment, accidents and losses are inevitable.
But the good news is that you can get reimbursed for any lost or damaged item inside Amazon’s warehouse.
Weight or Dimension Error
During shipping, Amazon might weigh your product incorrectly or give it a larger dimension. Though this rarely happens, Amazon will charge you a higher fee than the actual one, which is totally their mistake.
This wrong fee on several items can add up to a significant amount and may cost you money. But luckily, you can request reimbursement for this too.
Refund Higher Than the Return Error
The most common errors occur from returns of products. Buyers may get refunded a higher amount than the amount they actually paid. When this error happens, buyers feel like they are getting some free bucks from Amazon. But in reality, those extra bucks are debited from your account, which means that you lose money even when it’s not your fault.
You should track which customers have received refunds higher than the value of the purchase using Amazon Seller Central and claim reimbursement.
Refund for an Item That Hasn’t Been Returned
Sometimes, the buyer can get a refund even if they haven’t returned the item. In this case, you will not only lose money but also not get your item back. Therefore, you should keep a close eye on your refunds and returns and request reimbursement in case of any discrepancies.
Return Not Received
Returns sound off-putting, but still you want them returned to your inventory. However, this might not always be the case. When a buyer returns an item, it may not be added to your inventory through error. It might get lost in the warehouse or end up in another seller’s inventory. In these scenarios, you become eligible for reimbursement.
Amazon Restocking Fee Error
Whenever a customer buys an expensive item on Amazon and returns it, Amazon requires them to pay up to a 20% restocking fee. And once the returned item reaches the Amazon warehouse, you (the seller) get that 20% credited to your account.
But what if the amount does not get credited to your account? In such a case, when the mistake is on Amazon’s part, you can file a reimbursement claim, and Amazon will respond to your request.
A note, Amazon will not credit the restocking fee to your account if the return is damaged or the item isn’t returned at all.
When a buyer sends back a damaged item, it’s not always their fault. Sometimes, the buyer returns an item in perfect condition, but it gets damaged on its way back to the warehouse.
If any item is damaged due to the shipper, and Amazon finds that item to be unfit or unsellable, then you will be reimbursed for that item.
Overcharged Commission Fees
No matter which product you’re selling, Amazon charges you a commission fee, depending on your product category. Usually, the commission fee percentage ranges from 9% to 15%.
However, sometimes you can get charged the wrong commission fee on your products, which is a hindrance to your overall revenue.
For example, if the Amazon commission fee for your product is 9%, but you get debited for 15% instead of 9%, you’ll lose a lot of money.
Luckily, once again, if this happens, you can claim reimbursement.
So these are the top 10 Amazon FBA errors that happen. Identifying all these errors can be pretty daunting, especially when your main focus is on product quality and customer satisfaction while selling on Amazon.
Therefore, a lot of businesses outsource their Amazon FBA. Here at SPCTEK, we don’t just share your burden. Instead, we take it all on our shoulders so that you can focus on more critical parts of your business. If you want us to handle your Amazon FBA, book a free discovery call now.