How To Increase Your Amazon Profitability Through FBA Reimbursements

This article will help teach Amazon Sellers how to increase their profitability by securing FBA reimbursements.  We will cover five fundamentals about Amazon FBA reimbursements that are helpful in turning a loss in your Amazon business into a profit. 

FBA Reimbursements

How much in funds will you recover?

 

1. How Much Can A Seller Recover?

GETIDA‘s data suggests that the discrepancy rate of FBA inventory can range from 1% to 3% from the annual Amazon FBA sales of Amazon Sellers. This means that for every 100 units shipped to FBA, between 1 to 3 units will be affected. Types of issues can include inventory that is lost, damaged, destroyed, disappears, disposed of, or overcharged with FBA fees.  

This means that Amazon does an amazing job of handling third-party Sellers’ inventory between 97% to 99% of the time. This is an unbelievable achievement considering Amazon is dealing with a monstrous scale of tens of billions of dollars worth of inventory for third-party Sellers. 

However, if you are an Amazon FBA seller generating a million a year in FBA revenue, a 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 all your available FBA reimbursements. 

If the topic of Amazon FBA auditing and reimbursements is groundbreaking news to you, you better take action once you finish reading this article. There is probably a boatload of funds available for you to get back into your pocket. We are confident that you will put the newly recovered funds to good use and fuel your Amazon business.  

2. What are the Limits?

Amazon provides Sellers with an 18-month window to conduct an FBA audit for most FBA related FBA transactions. Sellers can open cases for any eligible discrepancies and get reimbursements under Amazon’s FBA reimbursement policy. After the provided time frame for filing a claim expires, Amazon Sellers have effectively lost the opportunity to recover their funds and file for FBA reimbursements claims. It is highly recommended for FBA Sellers to ensure maximum recovery of available claims by filing cases in a timely manner and never miss out on an opportunity to recover the lost funds. 

3. What are the Types of Discrepancies?

A common logistical discrepancy with Amazon FBA includes inventory that gets lost during the FBA inbound receiving. This type of claim is limited to nine months in the US marketplace and six months in the UK marketplace. Additionally, once your FBA inventory is in the Amazon fulfillment center, the inventory can later on also get lost, damaged, destroyed, disposed of, or disappear. 

A major financial discrepancy that can reduce FBA fees once resolved is when Amazon incorrectly overcharges Sellers on FBA pick and pack fulfillment fees. This is caused by incorrect weight and dimension information in Amazon’s data regarding your ASIN (Amazon Standard Identification Number). Amazon allows a time frame of only 90-days for providing such FBA reimbursements. Thus, Amazon Sellers need to keep auditing their Amazon FBA transactions at least every 90-days for this type of discrepancy. 

4. Recognizing the Opportunity

Amazon Sellers should always maximize their eligible FBA reimbursements per Amazon’s terms and conditions. If not, 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. When Amazon provides an FBA reimbursement, Amazon is essentially “purchasing” the affected inventory. This is equivalent to the product being sold on the platform to the consumer. For most Amazon Sellers, selling products on Amazon includes a good profit.

Therefore, if you recover the maximum FBA reimbursements that are available, you will effectively convert a double loss into a double win. FBA reimbursements help to recover your cost of goods AND your profit thus turning a business weakness into a business strength.

Soon, positive momentum will be back on your side and you will be flushed with the funds of FBA reimbursements. You can then use the recovered funds to enhance your business growth.  Launching more products on the marketplace, investing more in PPC advertising campaigns, offsetting financing costs on loans such as daily payouts, and cash advances are some examples of enhancement. 

Amazon Sellers Should Recover all the Available FBA Reimbursements

 

5. What Can You Do?

Sellers who have never audited their account for FBA discrepancies, have a certain Amazon FBA auditing process in place, or rely on Amazon for auto-reimbursement are equally deserving of the full reimbursements that are available to you.

FBA auditing solutions such as GETIDA can help ensure you are recovering everything you are owed.  Through GETIDA, recovery fees are applicable only for successful FBA reimbursements. If no reimbursement is secured, the service is free. Every dollar of recovery is a pure value-added to your business, especially during challenging times.

Signing up with GETIDA takes less than 5 minutes and grants you instant access to a free dashboard of data analytics and visibility into your Amazon account. Your GETIDA dashboard also provides a free estimate of how much in FBA reimbursements potential you can recover.

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 Noviland to offer readers $400 in Free FBA Reimbursements!  Simply click the offer above to take advantage of this opportunity and take your FBA auditing to the top level. 

$400 in Free FBA Reimbursements


 

 

 

 

 

Yoni Mazor is the COO & Co-Founder of GETIDA. Yoni began developing GETIDA after successfully operating a $20 million yearly Amazon FBA business, selling fashion brands internationally. GETIDA specializes in eCommerce discrepancy analytics and consulting. By utilizing data visibility technology, GETIDA focuses on discovering and managing financial and inventory-related discrepancies with billions of dollars of transactions managed annually. Yoni also comes with military intelligence experience, having served in the IDF Special Navy Intelligence.