FBA Lost and Damaged Inventory Reimbursement Policy: What Sellers Need to Know
TL;DR
Amazon reimburses lost or damaged inventory, but not all claims are automatic. Sellers must track and file claims.
Reimbursements cover lost, damaged, or mishandled stock within Amazon’s control. Some losses require manual claims.
Claims are not covered for carrier damage, customer-damaged returns, expired items, or old claims (past 18 months).
Key reports help track missing inventory: Inventory Adjustment, Received Inventory, and Refund Reports.
Claims can be filed via Seller Central with shipment IDs, ASINs, and proof. Denied claims can be re-evaluated.
Automation tools streamline tracking, filing, and recovering reimbursements, saving sellers time and money.
Selling on Fulfillment by Amazon (FBA) is a great way to grow your business, but it comes with its challenges. One major concern for sellers is inventory loss and damage. Since Amazon handles storage, packing, and shipping, inventory can sometimes go missing, be damaged, or be mishandled in their fulfillment centers.
Amazon has an inventory reimbursement policy to compensate sellers when these mistakes happen. However, not all lost or damaged inventory qualifies for reimbursement, and Amazon doesn’t always process refunds automatically. Sellers need to understand the policy, track their inventory, and file claims correctly to recover their lost money.
This guide explains Amazon FBA inventory reimbursement policy, how it works, and how sellers can maximize their refunds.
What is Amazon’s FBA lost and damaged inventory reimbursement policy?
Amazon’s FBA lost and damaged inventory reimbursement policy is designed to compensate sellers for inventory errors that occur under Amazon’s control. If inventory is lost, damaged, or destroyed while stored in Amazon’s fulfillment centers or during shipment between warehouses, sellers are eligible for Amazon FBA refund reimbursement.
Amazon provides automatic reimbursements in some cases, but sellers must track their inventory and file claims for many losses that Amazon fails to detect.
What qualifies for Amazon inventory reimbursement?
Amazon provides FBA inventory reimbursements for the following situations:
1. Lost inventory in Amazon warehouses
Amazon tracks inventory using barcode scanning and internal records, but items sometimes go missing. This can happen when:
Inventory is lost during inbound shipments from sellers to fulfillment centers.
The stock is misplaced inside a fulfillment center.
Items are lost during warehouse transfers between fulfillment centers.
If Amazon cannot locate the missing inventory, sellers are entitled to Amazon inventory reimbursement for the lost stock.
2. Damaged inventory in Amazon warehouses
Amazon is responsible for any damage caused to inventory while stored in its fulfillment centers. Inventory can be damaged due to:
Mishandling by warehouse staff.
Damage during internal transfers between fulfillment centers.
Accidents involving Amazon’s equipment or shelving systems.
If Amazon damages an item, they will either:
Reimburse the seller for the estimated value of the product.
Replace the damaged product with an identical unit.
Sellers should regularly check inventory reports to ensure they are receiving compensation for damaged products.
3. Lost or damaged inventory during Amazon’s partnered carrier shipments
If sellers use Amazon’s partnered carriers to ship inventory to fulfillment centers, Amazon takes responsibility for lost or damaged goods during transit. However, if a seller uses their shipping provider, they must file claims with the carrier instead of Amazon.
4. Customer returns that are lost or not refunded correctly
When a customer returns a product, Amazon is supposed to:
Add the returned item back to the seller’s inventory.
Mark it as “unsellable” if it is damaged.
Reimburse the seller if Amazon damages the item.
However, in many cases:
The returned item is never added back to inventory.
Amazon fails to issue a refund for damaged returns.
Customers return an incorrect or used item, but Amazon still deducts the refund from the seller’s balance.
Sellers can file an Amazon FBA refund reimbursement claim if they are not reimbursed correctly for returned items.
5. Uncredited removal and disposal orders
If sellers request a removal order to have inventory returned to them, but some units are not received, they may be eligible for reimbursement. Similarly, if Amazon agrees to dispose of inventory but does not provide proof, sellers can file a compensation claim.
What is NOT covered under Amazon’s reimbursement policy?
Amazon does not reimburse sellers for:
Items lost or damaged before reaching Amazon’s warehouse. If a seller’s shipping carrier loses or damages goods before Amazon receives them, the seller must file a claim with the carrier.
Customer-damaged returns. If a buyer damages an item before returning it, Amazon is not responsible unless it was caused by their mishandling.
Expired inventory. If products with expiration dates (such as food, supplements, or cosmetics) expire in Amazon’s warehouse, sellers are not eligible for reimbursement.
Labeling mistakes. If a product is mislabeled or missing barcodes, Amazon will not store or ship it, and sellers will not be reimbursed for resulting losses.
Claims older than 18 months. Amazon sets a time limit for filing reimbursement claims. Most claims must be filed within 18 months of the inventory issue.
How to track lost and damaged inventory for reimbursement
Amazon does not always automatically issue reimbursements for lost or damaged inventory. Sellers must regularly track their inventory reports in Seller Central to find missing refunds.
Key reports to monitor
Inventory Adjustment Report – Tracks inventory lost or damaged in fulfillment centers.
Received Inventory Report – Confirms if inbound shipments were recorded correctly.
Refund Report – Checks if customer refunds were deducted from the seller’s balance.
By regularly checking these reports, sellers can identify unprocessed reimbursements and file claims.
How to file an FBA reimbursement claim
If Amazon does not issue a refund automatically, sellers can file a claim manually through Seller Support.
Steps to file a claim:
Go to Seller Central.
Click on Help, then select Contact Us.
Choose Fulfillment by Amazon as the issue category.
Select FBA Inventory Reimbursement from the options.
Provide details of the lost or damaged inventory, including shipment IDs, product ASINs, and any supporting documentation.
Submit the claim and track its status in Case Logs.
If Amazon denies a claim, sellers should follow up with additional proof and request a re-evaluation.
How automation can help with FBA reimbursements
Tracking inventory and filing claims manually can be time-consuming, especially for high-volume sellers. Using an automated reimbursement service helps streamline the process.
An Amazon FBA reimbursement service can:
Scan seller accounts for unprocessed reimbursements.
File claims automatically with the correct documentation.
Track reimbursement status and follow up with Amazon.
For example, if a seller ships 10,000 units per month, a reimbursement automation tool can:
Identify missing stock faster than manual tracking.
Detect overcharged fees and request refunds.
Recover lost money without requiring the seller to file claims manually.
Automated services ensure sellers recover every dollar they are owed without spending hours tracking inventory.
Final thoughts
Amazon’s FBA lost and damaged inventory reimbursement policy is designed to protect sellers, but not all claims are processed automatically. Sellers must track inventory, review reports, and file claims to recover lost funds.
By using Amazon FBA refund reimbursement tools and automation services, sellers can ensure they are fully compensated for any inventory lost or damaged by Amazon. Regularly monitoring inventory records and submitting claims on time helps maximize refunds and maintain profitability in an FBA business.