Here are five tips to keep in mind about FBA reimbursements that can be useful in turning a loss into a profit. Especially for Amazon sellers that need access to additional cash. Maximizing FBA reimbursements is a powerful way that assists many FBA sellers in growing their revenue.
Available Time Frame
Amazon provides an 18-month window period for sellers to audit all the FBA related transactions. Sellers can open cases for any eligible discrepancies and get reimbursements under Amazon’s FBA reimbursement policy.
Scope of The Game
The discrepancy rate of products can range between 1% to 3%. This means that for every 100 units shipped to FBA, between 1 to 3 units will get affected (According to data collected by GETIDA).
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 a colossal 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 recovery of all your eligible FBA reimbursements.
Types of Issues
Once in the FBA center, your FBA inventory can also get lost, damaged, destroyed, or go missing. This is just one common logistical discrepancy that includes inventory getting lost during the initial FBA inbound receiving.
Another major financial discrepancy that can reduce FBA fees once resolved, is when Amazon incorrectly overcharges sellers on FBA pick and pack fees. This is due to incorrect information on the weight and dimensions in Amazon's data. Amazon allows a time frame of only 90-days for providing such reimbursements. Therefore, today more than ever before, Amazon sellers need to keep auditing their Amazon FBA transactions at least every 90-days.
Turn Weakness Into Strength
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, or the cost a seller pays to source an item. The second is loss of profit. When a seller gets reimbursed, Amazon is "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 healthy profit.
Thus, if you recover the maximum available FBA reimbursements, you will shift the double loss into a double win. The FBA reimbursements will cover your cost of goods AND your profit effectively turning a weakness into a strength.
Taking Action Can Make a Difference
Whether you have never audited your account, already have an Amazon FBA auditing process put into place, or rely on Amazon to auto-reimburse your account, you owe it to your business to get maximum reimbursements.
To make sure you are recovering everything you are owed, you can reach out to an Amazon FBA auditing service such as GETIDA. GETIDA charges a recovery fee ONLY for successful FBA reimbursements. If no reimbursement is secured, there is no cost. Every dollar of recovery purely adds to the value of 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 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.