Here are 5 useful points know about FBA reimbursements that can be helpful in turning a loss into a profit. Especially for Amazon sellers that are in need of access to more cash. Maximizing FBA reimbursements is a powerful way that assists many Amazon FBA sellers in growing their revenue.
1. FBA Claims Expire
Amazon provides an 18-month window period for sellers to conduct an FBA audit for most Amazon FBA related transactions. Sellers can open cases for any eligible discrepancies and get reimbursements under Amazon’s FBA reimbursement policy. After the allowed time frame for filing a claim expires, Amazon sellers have effectively lost a major opportunity to recover their money. It is highly recommended for sellers to always maximize their available claims.
2. The Scope of The Problems
The data of the technology company GETIDA points out that the discrepancy rate of products can range between 1% to 3% from the annual FBA sales of Amazon sellers. This means that for every 100 inventory units shipped to FBA, between 1 to 3 units will get affected. Types of issues can include inventory that gets lost, damaged, destroyed, disappears, disposed or overcharged.
This means that Amazon does an excellent job of handling the inventory of third-party sellers between 97% to 99% of the time. This is a remarkable achievement considering Amazon is dealing with an unbelievable scale of tens of billions of dollars worth of inventory.
Nevertheless, if you are an Amazon FBA seller generating $1 million a year in FBA sales, your 1% to 3% discrepancy rate can range between $10,000 to $30,000 which is significant. It is your responsibility as a seller to maximize the recovering of all your eligible FBA reimbursements.
If the topic of Amazon FBA auditing and reimbursements is shocking news to you, you better take action as soon as you finish reading this article. There is probably lots of money available for you to recover.
3. Examples of Problems
A common logistical discrepancy includes inventory that gets lost during the initial FBA inbound receiving. Once in the FBA center, your FBA inventory can also get lost, damaged, destroyed, disposed of, or simply disappear.
A major financial discrepancy that can reduce FBA fees once corrected, is when Amazon incorrectly overcharges sellers on FBA pick and pack fulfillment fees.
The reason is due to the incorrect information on the weight and dimensions in Amazon’s data. Amazon allows a time frame of only 90-days for providing such FBA reimbursements. Therefore, today more than ever before, Amazon sellers need to keep auditing their Amazon FBA transactions at least every 90-days for this type of issue.
4. Seize The opportunity
Amazon sellers need to maximize the FBA reimbursements that they are eligible for under Amazon’s terms and conditions. If they don’t, they will experience a double loss.
The first loss is the cost of inventory. Meaning the cost a seller pays to source an item. The second loss is the loss of profit. The reason is when a seller gets reimbursed by Amazon, Amazon is essentially “purchasing” the affected inventory from the seller as if the product sold on Amazon’s platform. For most Amazon sellers, selling products on Amazon includes a solid profit. Therefore, if you recover the maximum available FBA reimbursements that are available for you, you will shift the double loss into a double win. The FBA reimbursements that recover your cost of goods AND your profit effectively turns a weakness into a strength.
5. Take Action
Whether you have never audited your account for FBA discrepancies, or you already have a certain Amazon FBA auditing process put into place, or just rely on Amazon to auto-reimburse your account, you owe it to your business to get the maximum reimbursements you are eligible for.
To make sure you are recovering everything you are owed, you can reach out to an Amazon FBA auditing service such as GETIDA. The reason is that GETIDA charges a recovery fee only from successful FBA reimbursements. If no reimbursement is secured, there is no cost. Every dollar of recovery is a pure value add for your business, especially during challenging times.
In fact, signing up with GETIDA takes about 4 minutes and you will get instant access to a free dashboard that will provide you with data analytics and visibility into your Amazon account. The GETIDA dashboard will also give you a free estimate of how much FBA reimbursements potential you can recover on your account.
If you wish to unlock these FBA reimbursements, you can then upgrade your account to the GETIDA FBA recovery service, and enjoy all the benefits of maximizing your FBA reimbursements.
GETIDA has partnered with CruxFinder to help FBA sellers get access to more funds. They are offering you, the seller, $400 in Free FBA Reimbursements, simply visit GETIDA to claim this offer, and you will be ready to take your FBA auditing to the top level. We hope that you find the 5 useful points about FBA reimbursements helpful to grow your Amazon business. Good luck, and stay safe and healthy out there!