Listing Optimization

The Best Kept Secret To Increasing Your Cash Flow on Amazon - Amazon FBA Reimbursements

by GETIDA Sept. 23, 2021

So you’ve just started selling on the largest online marketplace, and you’re wondering how you can increase your cash flow to help you grow your FBA business?


You may not have heard of Amazon FBA reimbursements but let us assure you they are a critical backbone to selling on Amazon.


Amazon FBA spiked in popularity several years ago with the option to sell private label products on the platform. Now Amazon is an online platform currently selling more than $12 million products.

As an Amazon seller, you know the value of cash flow and its importance within your business. Cash flow helps you increase your inventory size, develop more robust marketing strategies, and scale your FBA business to recognizable brands on and off of the platform.

What you may not be aware of is that Amazon FBA reimbursements can play an integral part in the financial health of your FBA business. This article will outline what Amazon FBA reimbursements are and how they can help you increase cash flow as an Amazon FBA seller.



So, What is An Amazon FBA Reimbursement?


Amazon FBA reimbursements are reimbursements owed to you by Amazon for discrepancies on your account. 

Discrepancies are essentially errors that Amazon has made unintentionally. Amazon sellers need to file Amazon claims to recover the money owed to them by Amazon. Amazon will, at times, automatically reimburse sellers, but considering the sheer volume of inventory Amazon processes, it makes sense that things get missed.

Discrepancies fall into 5 main categories:

  • Lost
  • Damaged
  • Disposed
  • Destroyed
  • Overcharges in FBA fees


What Are the Main FBA Reimbursement Methods?


Great question! As mentioned above, Amazon may or may not automatically file your FBA reimbursements. Therefore as an Amazon seller, it’s essential to perform Amazon account audits. Amazon audits help you to review the transactions on your account, looking for discrepancies.

Once you find discrepancies on your account, you are required to file Amazon claims in an attempt to recover these funds. 

Here’s how to file an Amazon claim:

  1. Log in to Seller Central Account > Reports > Fulfilment > Inventory Adjustments. 
  2. Create an Amazon claim with Amazon seller support.


When you open your case file with Amazon, be sure to include the appropriate information within the case to ensure positive results. Also, note that Amazon may request more information from you if needed.


    1. Do it Yourself


Some sellers may perform their own FBA reimbursements, while others may decide to outsource the task.


     2.  Virtual Assistants


A virtual assistant who has experience in Amazon may be able to manage and track your FBA reimbursements. Its always preferred to ensure they have knowledge of Amazon and how to file Amazon claims effectively, so you recover the most funds available.


     3.  FBA Reimbursement Solution Provider


Another great option is that of an FBA service or solution provider. These solutions work on the seller’s behalf to recover funds owed to them. 

Some providers may be a part of the Amazon Service Provider Network. This is an important consideration as this means that the provider was audited quite extensively by Amazon. It also means that the service provider or solution has been vetted to gain account-level access to perform Amazon audits and Amazon claims on your behalf.

Each solution will perform slightly different Amazon audits and will offer different fee structures. Some will charge flat rates based on your sales, while other solution providers will only charge a fee once they have recovered funds on your behalf. This is known as pay per recovery.

Some reimbursement providers have a leg up with filing Amazon claims because they understand what Amazon requires within each specific Amazon claim. Because of their expertise, these solutions also know how to present the information to Amazon. 

Consider FBA reimbursements as a standard operating procedure within your FBA business, and always try to recover the maximum amount of money owed to you.


How Long Does it Take to Perform FBA Reimbursements?


While recovery of funds from Amazon varies, performing an Amazon audit on your Amazon account can take quite some time. 

It all depends on how many SKU’s and transactions are present and how familiar you are with data entry. You’ll want to access a program like excel to record your findings and keep the information organized and easy to follow.

Amazon allows audits of up to 18 months, so it’s always a good idea to review your transactions going back to the maximum time frame. You don’t want to leave any of your money behind.

Doing FBA reimbursements yourself is, of course, an option, but once you realize how many daily tasks you need to perform, you may soon see that outsourcing reimbursements can save you time and money.



How Can FBA Reimbursements Help You Increase Your Cashflow?


Growing an Amazon FBA business requires many touchpoints to see the success of that business. 

From a well-crafted Amazon listing to the best product photography, a well-rounded marketing strategy, to understanding how to leverage pay-per-click advertising effectively, there are many moving parts to your Amazon FBA biz.

When you recover money from FBA reimbursements, this money can be used to develop your business strategy, grow your inventory size, or improve marketing and advertising plans.




While Amazon FBA has seen an influx of online sellers in the last few years, it’s still widely known as a viable business model that affords a certain level of freedom and the opportunity to be your own boss.

As an e-commerce entrepreneur, you can be inundated with information when you first start selling on Amazon; things like FBA reimbursements can naturally be missed in the beginning stages. 

Now that you understand FBA reimbursements, it’s wise to implement them into your standard operating procedures.


Happy Selling!


Get $400 in Free FBA reimbursements with GETIDA.


About the Author: