5 Common Claim Filing Mistakes to Avoid

Amazon FBA sellers lose 1–3% of their annual revenue due to errors like misplaced inventory and damaged goods. That’s up to $30,000 for a $1 million business. While Amazon reimburses some losses, only 60–70% of eligible claims are automatically processed, leaving sellers to file the rest manually. But mistakes - like missing documentation or deadlines - can cost you even more.

Here’s how to avoid the five most common mistakes:

• Incomplete Documentation: Missing required evidence leads to claim rejections.

• Wrong Claim Category: Filing under the wrong type guarantees denial.

• Missed Deadlines: Each claim type has strict filing windows; missing them means lost money.

• Misunderstanding Eligibility: Not all inventory issues qualify for reimbursement.

• Skipping Regular Reconciliation: Without routine checks, you’ll miss discrepancies and claims.

For high-volume sellers, automation tools like Refunzo simplify the process, ensuring accurate claims and timely filing. With up to 40% of reimbursements left unclaimed, staying organized and proactive is key to recovering your revenue.

Step By Step Amazon FBA Reimbursement (Get Money Back from Amazon!)

1. Missing or Incomplete Documentation

One of the most common pitfalls sellers face is submitting claims to Amazon without the required documentation. Without the right paperwork, your claim is almost guaranteed to be denied.

Amazon has specific requirements depending on the type of claim you're filing. For lost items, you'll need to provide documents like the Purchase Order, shipping records (including shipment ID and packing labels), Proof of Delivery, and an Inventory Adjustment Report. If you're dealing with damaged items, include clear photographs, customer communications, and condition notes. Fee discrepancies, on the other hand, require detailed documentation such as invoices with full product details, the FBA Fee Details Report, and bank statements showing the incorrect charges. Be sure to identify each incorrect fee and explain any differences in detail - this is something Amazon now explicitly requires.

Interestingly, about two-thirds of rejected claims can be salvaged if sellers address the missing documentation and resubmit correctly. However, gathering these documents can take time, and delays might mean missing important filing deadlines.

To avoid this, keep your records organized. Use digital tools or cloud storage to ensure your documents are easy to access and search. Create separate folders for different claim types - like lost inventory, damaged goods, or fee disputes - and make sure all files are clearly labeled with dates. Automated reconciliation services, such as Refunzo, can also simplify the process by keeping your records accurate and updated, reducing the chance of delays caused by missing paperwork.

It's also a good idea to maintain and review your records monthly. Use reports like Refund Reports, Inventory Adjustments, and Manage Order Reports to spot discrepancies early. Keep detailed transaction records, including shipping receipts, invoices, and email exchanges, so you can quickly provide evidence if needed. Staying on top of your documentation not only helps you catch issues before they escalate but also ensures valid claims aren't denied due to incomplete paperwork.

2. Filing Under the Wrong Claim Category

Submitting a claim under the wrong category is one of the quickest ways to get it rejected. Amazon's system relies on specific eligibility rules for each claim type, and choosing the incorrect one almost guarantees a denial.

Amazon has five primary claim categories for FBA reimbursements, each requiring particular documentation:

• Lost Inventory: Items that Amazon cannot locate.

• Damaged Inventory: Products damaged while in Amazon's care (not those that arrive damaged to customers).

• FBA Returns Reimbursement: Discrepancies in returned items.

• Incorrect Removal or Disposal: Unauthorized removal or disposal of your inventory.

• Refund Miscalculations: Errors in the amount refunded to customers.

To determine the right category, start by reviewing your Inventory Adjustments and Refund Reports. Look for gaps between what you shipped and what’s reflected in your account. For example, if items went missing during the inbound process, that likely falls under a lost inventory claim. If there are negative adjustments for items that were intact when shipped, you’re probably dealing with a damaged inventory claim. Pay close attention to when and where the issue occurred - whether during shipping, storage, fulfillment, or returns - to identify the correct claim type. This step helps clarify any mismatches between your expected and recorded inventory.

Interestingly, around 40% of lost inventory claims stem from inbound shipment errors. However, sellers often file these under damaged inventory claims, assuming the problem lies with their products rather than Amazon’s tracking system.

Before filing, double-check Amazon's FBA reimbursement policy to confirm your claim fits the category. Spending a few extra minutes upfront can save you weeks of frustration and back-and-forth communication with Amazon’s support team.

If you’re looking for a more efficient way to manage this, tools like Refunzo can automate the reconciliation process. These tools can spot discrepancies and recommend the correct claim category based on your situation, saving you time and effort.

3. Missing Claim Filing Deadlines

Once you've gathered the right documentation and identified the correct claim category, meeting filing deadlines is the next crucial step. Timing matters - a missed deadline could mean losing out on hundreds or even thousands of dollars in reimbursements. Amazon enforces strict filing windows for different claim types, so knowing the exact timelines is non-negotiable.

Take inbound shipment issues as an example. If inventory goes missing during transit, you must wait at least 15 days before filing a claim, but you have a hard cutoff at 75 days from the shipment's creation. On the other hand, customer return claims follow a different timeline - you can file between 60 to 120 days after the refund date, but filing too early (before 60 days) will result in an automatic rejection.

Here’s a quick breakdown of claim types and their filing windows:

Missing these deadlines can be costly. For instance, a Health & Household seller with $12 million in gross merchandise value lost over $198,000 in potential reimbursements due to missed filing opportunities. That’s money that could have gone straight to their bottom line.

Amazon recently announced key changes to its reimbursement policies. Starting March 31, 2025, reimbursements will be based on manufacturing cost instead of the selling price. Additionally, as of November 1, 2024, U.S. sellers began receiving automatic reimbursements for lost inventory, with U.K. sellers set to benefit from the same automation starting January 15, 2025. While these updates improve automation, not all cases are resolved automatically, making regular monitoring essential.

To avoid missing out on reimbursements, establish a consistent review process. Instead of sporadic account checks, review inventory and payment reports weekly. Set calendar reminders for claim deadlines, and keep meticulous records of shipments, fees, and inventory movements. Filing windows range from as short as 15 days for inbound issues to 120 days for customer return problems, so staying organized is key.

For sellers managing high volumes, manual tracking can be overwhelming. Tools like Refunzo can simplify the process. With over 20 automated criteria checks, it continuously monitors your account, identifies reimbursement opportunities, and tracks deadlines - helping you ensure no filing window slips through the cracks.

4. Poor Understanding of Amazon's Eligibility Criteria

Knowing Amazon's reimbursement eligibility criteria isn't just helpful; it's crucial. Without this knowledge, sellers risk having their claims automatically rejected, wasting both time and effort. Many sellers jump into filing claims without fully understanding what qualifies, leading to unnecessary frustration and missed chances for legitimate reimbursements.

Amazon's rules are clear: items must be registered in FBA at the time of loss or damage, meet product restrictions, align with the shipping plan, not be in a canceled or pending disposal status, and must be filed from an account in good standing. Ignoring these requirements often results in rejected claims.

One common mistake sellers make is assuming that all inventory issues qualify for reimbursement. That’s not the case. For instance, customer-damaged items, defective products, or items you’ve requested to be disposed of are not eligible. Here's an example: if you send 100 units to Amazon but only declare 90 in your shipping plan, Amazon won’t reimburse you for the 10 missing units.

Recent changes in Amazon's reimbursement policies have made this understanding even more critical. Reimbursements are now based on manufacturing costs, not the selling price. So, if a product sells for $50 but costs $15 to manufacture, you’ll only receive $15 as reimbursement - not $50.

Adding to the complexity, Amazon’s automated system only identifies about 60–70% of eligible claims. The remaining 30–40% require manual filing. Filing invalid claims repeatedly not only wastes time but can also negatively impact your account. Common reasons for claim rejections include filing outside the allowed timeframe, incomplete documentation, or misunderstanding eligibility rules. Interestingly, about 40% of denied claims can be successfully appealed - if you understand the reason behind the denial and approach it correctly.

To stay on top of things, regularly download and review Inventory Adjustment, Transaction, and Return Reports to verify fulfillment center activities. Make sure to input accurate manufacturing costs in Seller Central to avoid Amazon’s estimates, which might undervalue your reimbursements. Keep essential documents like invoices, purchase orders, and shipment records organized and ready. When discrepancies arise, cross-check your records with Amazon’s data to uncover valid reimbursement opportunities.

For sellers managing large volumes, tools like Refunzo can simplify the process. With over 20 automated checks, Refunzo continuously monitors your account to ensure you file only eligible claims, saving you from the headache of rejections.

Finally, stay informed about policy updates through Seller Central announcements and newsletters. While Amazon plans to expand automated claim processing through 2025, understanding eligibility criteria will remain essential for maximizing reimbursements. This foundational knowledge will also help you make the most of automation - a topic we’ll dive into next when comparing automated and manual reconciliation approaches.

5. Lack of Regular Account Reconciliation

One of the most common mistakes sellers make isn’t about how they file claims - it’s about not knowing what they can claim in the first place. Skipping regular account reconciliation is like flying blind, leaving you unaware of potential discrepancies that could significantly impact your revenue. By making reconciliation a routine practice, you can spot eligible issues promptly and file claims before it’s too late.

Here’s the reality: FBA discrepancies can eat up 1%–3% of your annual revenue. For a business generating $500,000 a year, that’s as much as $15,000 slipping through the cracks. Some reports even suggest that up to 60% of eligible reimbursements go unclaimed. That’s a lot of money left on the table.

Unfortunately, many sellers only look into their accounts when something obviously goes wrong. This reactive approach often means discrepancies are discovered too late, resulting in missed opportunities for reimbursement. Without regular monitoring, you also open the door to bigger problems like fraud risks, compliance headaches, and cash flow issues. For example, nearly 40% of reimbursements stem from inbound shipment errors - issues you’re more likely to catch with systematic account checks.

To stay ahead, build a monthly reconciliation process. Cross-reference payment, sales, and inventory reports to flag discrepancies early. Keep a close eye on returns and refunds, and maintain detailed transaction records so nothing slips past you.

If the sheer volume of transactions feels overwhelming, automation can be a lifesaver. Automating reconciliation tasks can slash the time spent on these processes by up to 75%, and 87% of finance professionals report that automation improves accuracy while cutting down on manual mistakes. Tools like Refunzo can help streamline this process. With over 20 automated criteria checks, Refunzo continuously monitors your account, flags discrepancies, and generates detailed reports. You can either handle claims yourself or let Refunzo manage them for a capped commission fee.

Make it a habit to reconcile immediately after major sales events like Prime Day or Black Friday. Train your team to follow these procedures and reach out to Amazon Support quickly when discrepancies arise.

Regular reconciliation doesn’t just recover lost money - it also provides insights that can help you fine-tune inventory management, marketing, and pricing strategies.

Comparison Table

When managing Amazon FBA reconciliation, the choice between manual and automated processes can significantly impact your efficiency, accuracy, and revenue recovery. Below, we break down the key differences between the two approaches, making it clear why automated reconciliation often stands out.

Automated vs. Manual Reconciliation

Here's a side-by-side look at how manual and automated reconciliation compare across critical factors:

These distinctions highlight why efficient reconciliation is essential for protecting your revenue. For Amazon sellers, manual reconciliation often comes with steep opportunity costs - finance teams spend roughly 30% of their time on tasks like these, creating room for errors and inefficiencies.

Manual tracking of thousands of transactions can lead to timing discrepancies and inconsistent records, two major contributors to the 26% claim denial rate. Automated systems, on the other hand, eliminate these pitfalls by maintaining uniform documentation and ensuring all necessary evidence is readily available.

As your business scales, the limitations of manual processes become even more evident. Managing an increasing volume of transactions manually is not only time-consuming but also prone to errors. Automated solutions, however, can seamlessly handle larger workloads without requiring additional time or effort.

Refunzo, for instance, offers automated reconciliation with detailed reporting. It gives sellers the option to manage claims themselves or delegate the process for a capped commission fee of 15% of the refunded amount or $5,000, whichever is lower. This flexibility ensures that sellers can focus on growth while maximizing their revenue recovery.

Conclusion

Filing FBA claims doesn’t have to drain your resources. The five common mistakes - like incomplete documentation, using incorrect claim categories, missing deadlines, misunderstanding eligibility criteria, and neglecting regular reconciliation - can take a big bite out of your profits. With up to 40% of reimbursements left unclaimed, fine-tuning your claim process is essential to safeguard your revenue.

To tackle these challenges, consistent and accurate account management is key. A clear understanding of Amazon’s requirements can significantly boost your chances of success. While manual reconciliation might seem manageable at first, it often leads to errors and inefficiencies. On the other hand, automated systems provide more reliable and thorough checks, making them a smarter choice.

As mentioned earlier, automation easily outpaces manual methods, especially for high-volume sellers. Managing reconciliations manually simply doesn’t scale. Many sellers have turned to Refunzo’s automated service, which has earned praise for efficiently recovering missed reimbursements.

"I am very appreciative of this team. They have done a great job finding money which was owed to me by Amazon due to lost and damaged inventory. Their fees are reasonable especially considering the fact that they have literally recovered thousands of dollars on my behalf." - Rob C.

Ultimately, opting for automated solutions instead of manual tracking could be the difference between recovering what’s rightfully yours or leaving money on the table. Refunzo’s lifetime free reconciliation service, paired with optional claim management for 15% of recovered amounts (capped at $5,000), offers a straightforward, risk-free way to maximize your reimbursements.

FAQs

What documents do I need to file a successful Amazon FBA reimbursement claim?

To successfully file an Amazon FBA reimbursement claim, you'll need a few key documents: Proof of Delivery (POD), a signed Bill of Lading (BOL), and packing slips. These are essential for verifying your claim and providing Amazon with the information they require to process it. Double-check that all details are correct and submit everything within Amazon's specified deadlines to prevent delays or potential rejections.

How does Refunzo simplify the reimbursement claim process and help meet deadlines?

Refunzo takes the hassle out of reimbursement claims by automating account reconciliation and spotting refund opportunities. It keeps a close eye on your Amazon FBA account, highlights discrepancies, and ensures claims are filed on time, so you don’t risk missing important deadlines.

With more than 20 specific criteria checks, Refunzo delivers detailed and precise reports. You can choose to manage the claims yourself or let Refunzo handle them for you, all for a capped commission fee. This streamlined process saves you time, minimizes mistakes, and ensures you recover every dollar owed.

What are the most common mistakes sellers make when understanding Amazon's reimbursement criteria, and how can they avoid them?

Many sellers think that any missing or damaged inventory will automatically qualify for reimbursement or that Amazon will handle claims on their behalf without any effort on their part. Some also fail to meet important requirements, like submitting proper documentation or adhering to invoice guidelines.

To prevent these missteps, sellers should take the time to thoroughly review Amazon’s reimbursement policies, keep accurate and well-organized records, and ensure all documents align with Amazon’s standards. Staying on top of claim statuses and understanding Amazon’s clawback policy can also help sellers avoid losing out on potential refunds.

Related Blog Posts

• 5 Ways to Maximize Your Amazon FBA Reimbursement Claims

• Understanding Amazon's FBA Reimbursement Policy

• 7 Reasons Amazon Rejects FBA Claims

• 5 Common Amazon FBA Claim Mistakes