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How to Get Reimbursements for Damaged Inventory from Amazon?

Are you selling products on Amazon as an FBA (Fulfillment by Amazon) seller? If so, it’s likely that you’ve encountered the issue of damaged goods and having hundreds of dollars stuck in Amazon’s compensation for returns.

According to Amazon’s policy, any damaged merchandise must be reimbursed or replaced. While Amazon is supposed to repay you for damaged merchandise automatically, there are steps you can take to recover some of your losses.

In this article, we will guide you through the process of accessing the necessary reports and filing a case with Amazon to receive compensation. We’ll help you get your money back and recoup any losses incurred from damaged or defective goods.

What is Amazon Damaged Inventory Policy?

The Amazon Reimbursement is a method by which Amazon FBA sellers can request compensation for merchandise that has gone missing or has been damaged while under Amazon’s supervision.

Steps to Tracking Amazon Damaged Inventory

To get reimbursed by Amazon for damaged inventory, you will need to take the following steps:

  1. First, you will need to identify the damaged items in your inventory. Make sure to keep track of both the product identifier (ASIN or FNSKU) and the quantity of each damaged item. You can download Fulfillment reports from Amazon. These reports include information about the item, the sale, and the damage. To access these reports, you will need to log into your Amazon seller account. Once you’re logged in, go to the “Reports” section and look for the “Fulfillment” reports. On this page, you will find a lot of different reports related to inventory, sales, payments etc.
  2. Once you have identified the damaged items, you will need to create a final report of these items, including all relevant information, such as the ASIN/FNSKU, description, and quantity.
  3. After having the necessary reports, you can file a case with Amazon to receive compensation. The process of filing a case is straightforward and can be done through the Amazon seller account.  To file a case, go to the “Help” section of your Amazon seller account and select “Contact Us.” From there, you can select the option for “Report a problem with an order.” In the case of damaged goods, select “Merchandise is damaged.”
  4. Once Amazon receives the damaged items, they will inspect them and issue a refund for the cost of the items, plus any shipping charges incurred.

Reconciling Damaged Inventory

In order to reconcile inventory, you’ll need to run reports for that same time period in your inventory software similar to that of Amazon inventory adjustment report. 

For these SKUs, the total quantity of units going out of the seller’s warehouse should match the number of units received by Amazon Warehouse and ensure that Amazon has taken care of the inventory to minimize the returns

Once your damage claim has been submitted, Amazon will review and determine whether you’re eligible for reimbursement, and they will approve or reject your claim.

What if My Claim is Denied?

If your claim is denied, there are a few things you can do. First, check the appeal process for the reason your claim was denied and see if you can provide additional information. 

If you still don’t agree with the decision, you can reach out to Amazon customer service for help. 

Tips to Avoid Damaged Inventory Returns

It is important to take proactive steps to prevent future damage claims. Proper packaging and careful handling are the best ways to avoid damage to your inventory.

When packing items for shipment, always use appropriate packing materials. For example, fragile items should be cushioned with bubble wrap or foam peanuts. Heavy items should be securely fastened in a box so they cannot move around and cause damage.

In addition, it is important to label all boxes containing fragile items clearly and prominently. This will help ensure that your packages are handled with care.

It is also important to track your inventory carefully. Keep an accurate and up-to-date Inventory Control System to quickly identify when an item has been damaged or gone missing. This will help you file a claim immediately and get your money back as soon as possible.

Wrapping Up!

Although a simple process, getting your money back for Amazon’s damaged inventory may seem overwhelming and tedious. It’s important to remember that Amazon offers a great return policy.  They are willing to work with vendors who have experienced problems with damaged or lost products. We hope this guide has provided some helpful information on getting your money back for Amazon’s damaged inventory.

If the process is overwhelming or you just don’t have the time, you may want to consider an Amazon Management Service such as SPCTek to make it happen for you.  Book a free consultation call now!

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