5 Steps to Claim Damaged Inventory Reimbursements

Amazon FBA sellers lose money when damaged or lost inventory isn't reimbursed. While Amazon's system identifies most issues, 30-40% of claims go unnoticed without manual tracking. Recent policy changes (March 31, 2025) now calculate reimbursements for pre-order damages based on manufacturing cost instead of retail price, reducing payouts by up to 60-80%. Here's how you can recover your money:

1. Identify damaged items using Amazon's Inventory Adjustments Report.

2. Gather documentation like invoices, shipment details, and photos.

3. File claims in Seller Central with accurate details.

4. Track progress and respond promptly to Amazon's requests.

5. Confirm reimbursement and ensure accuracy in payments.

Key updates to know:

• Claims must be filed within 60 days (down from 90).

• Post-order damages are reimbursed at the sales price (minus fees).

• Tools like Refunzo can automate claims and improve recovery rates.

Don't leave money on the table - follow these steps to ensure you're compensated for damaged inventory.

How To Get Reimbursed For Amazon FBA Returns That Are 'Damaged By Carrier'

Who Qualifies for Damaged Inventory Reimbursements

Not every damaged item is eligible for Amazon's reimbursement program. Knowing the specific requirements can save you time and help you focus on claims with the highest likelihood of success.

Basic Requirements for Reimbursement

To qualify for reimbursement, the item must have been active in FBA when it was lost or damaged. Your products must adhere to all FBA product restrictions and inventory requirements. Additionally, the items and quantities you shipped must match what you declared in your original shipping plan. Any discrepancies between what you reported and what you actually sent can lead to disqualification.

Your FBA shipment must remain active (not canceled or deleted) at the time you file your claim. Also, your seller account needs to be in good standing both when you submit the claim and throughout the review process. Claims may be denied if you fail to follow Amazon's procedures or neglect to provide all requested documentation.

Cases That Don't Qualify

Certain situations automatically disqualify items from reimbursement. For example, products damaged by customers are not eligible. If a customer returns an item that they have damaged or misused, Amazon will not compensate you. Similarly, items pending or already marked for disposal cannot be claimed.

Defective products or those subject to a manufacturer recall are also excluded from reimbursement. Losses caused by natural disasters - such as floods, hurricanes, or earthquakes - are not covered. Additionally, any damage resulting from seller errors does not qualify.

Amazon won't reimburse for refunds you issue directly to customers or for items that customers are unable to return under Amazon’s return policy, unless Amazon itself is responsible for the issue.

2025 Policy Changes You Need to Know

Amazon has introduced new rules that take effect on March 31, 2025, which further tighten the reimbursement criteria. For inventory lost or damaged before a customer places an order, reimbursements will now be based on the product's manufacturing cost, not its retail price. This adjustment could reduce reimbursement amounts by over 75% unless you provide accurate manufacturing cost details in Seller Central.

The window for filing claims has also been shortened. Most claims must now be submitted within 60 days of the incident, down from the previous 90-day period. Additionally, claims now require more detailed documentation, including invoices, proof of purchase, and shipment tracking records.

For items lost or damaged after customers place orders, reimbursements will still be calculated based on the full sales price minus applicable fees. To stay compliant and maximize your reimbursement potential under these new rules, keep a close eye on your inventory - especially for high-value or high-volume items - and maintain thorough records of all shipments, inventory, and returns.

How to File a Damaged Inventory Claim in 5 Steps

Filing a damaged inventory claim through Amazon Seller Central requires attention to detail and proper documentation. While the process is straightforward, Amazon's requirements demand thoroughness from the beginning.

Step 1: Identify Damaged Items in Your Inventory

The first step is pinpointing which items in your FBA inventory are damaged. Amazon doesn’t always notify you when damage occurs, so it’s important to monitor your inventory regularly.

Log into Seller Central and head to Reports > Fulfillment to generate an Inventory Adjustments Report. This report shows all inventory changes, including damages. Look for these specific status codes that indicate damage:

Also, cross-check the Reimbursement Reports to avoid duplicate claims.

"Regularly review your inventory and organize your documents to streamline the process. For large inventories, consider professional help to manage claims efficiently."
– eStore Factory

eStore Factory suggests conducting bi-monthly inventory checks to catch and address issues early.

Step 2: Gather Supporting Documents

Documentation is critical - missing or incomplete files can lead to claim rejections.

Here’s what you’ll need for each claim:

• Original product invoices showing the product cost

• FBA shipment ID and tracking details to confirm when and how the items were sent to Amazon

• Inventory placement records documenting where Amazon directed your shipments

If you still have the damaged items, take clear photos and write detailed notes about their condition. Amazon might request additional information, so be prepared. Use a consistent naming format for your files (e.g., [ASIN]_[Document Type]_[Date]) to keep everything organized and easy to access.

Step 3: Submit Your Claim in Seller Central

Once your documentation is ready, log into Seller Central to file your claim. Go to the Claims Portal, select Reimbursement, and choose Damaged Inventory Claim.

Fill out the required fields accurately and upload your supporting documents (PDFs under 10MB). Key details to include are:

• ASIN or SKU

• Quantity damaged

• Original condition when shipped

• Date the damage was discovered

• Fulfillment center location

Provide a clear explanation of the damage and why Amazon is responsible for the loss. Filing a claim usually takes around 10–15 minutes, but make sure to meet Amazon’s filing deadlines once the damage is identified.

Step 4: Track Your Claim and Stay Responsive

After filing, it’s important to keep an eye on your claim’s progress. Check the Case Log every 48–72 hours for updates. If Amazon asks for additional information, respond within 24 hours to avoid delays.

Amazon typically processes claims within 5–7 business days, though more complex cases may take longer. Having your original files organized ensures you can provide any extra evidence quickly.

Step 5: Confirm Your Reimbursement

Once your claim is approved, check the Payments section in Seller Central to confirm the reimbursement amount. Payments are usually processed a few business days after approval. Compare the credited amount with your records to ensure accuracy.

If there’s a discrepancy, contact Amazon using your case number. Keeping records of all claims and reimbursements is helpful for accounting and can also highlight recurring damage patterns or fulfillment center issues.

Tools to Automate Your Reimbursement Claims

Handling damaged inventory claims manually can be a tedious, error-prone process, especially if you're managing hundreds - or even thousands - of items across multiple fulfillment centers. Automated tools can take the hassle out of this process, turning repetitive tasks into efficient, accurate workflows. Let’s take a closer look at how Refunzo simplifies claim management and saves you time.

How Refunzo Makes Claims Easier

Refunzo provides a lifetime free Amazon FBA reconciliation service that scans your account using more than 20 criteria to uncover potential reimbursements. By linking directly to Seller Central, it performs detailed checks across several critical areas of your business.

Here’s what Refunzo’s reconciliation process covers:

Once connected, Refunzo offers a user-friendly dashboard that tracks your recovery progress for lost, damaged, or destroyed inventory. It also audits FBA fulfillment fees, catching potential overcharges related to product weight and dimensions - details that are easy to overlook when reviewing manually.

A standout feature is Refunzo’s Proof of Delivery document retrieval, which automatically gathers carrier documents needed for claims. This removes the hassle of contacting shipping companies for supporting paperwork.

The platform even provides a detailed reimbursement estimate, giving you the option to either file claims yourself or let Refunzo handle them for a capped fee.

Why Use Refunzo for Your Claims

Refunzo’s automated system eliminates the need for manual monitoring. Instead of combing through inventory adjustment reports or cross-referencing various data sources, the platform does the heavy lifting by identifying discrepancies and uncovering potential reimbursements across your account.

Its pricing model is also a major plus. Refunzo charges 15% of the refunded amount, capped at $5,000, and you only pay after reimbursements are successfully recovered. There are no subscription fees or upfront costs, making it an affordable option for sellers of any size.

"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... they have literally recovered thousands of dollars on my behalf." - Rob C.

Refunzo has earned a 5 out of 5 stars rating on the Amazon Selling Partner Appstore. Users regularly highlight its effectiveness. Doug Joyce, a verified user, shared that Refunzo uncovered "10's of thousands of dollars" for him, calling the service "Professional and efficient."

David Cummings praised it as "easy to use, cost-effective, and highly efficient", while LifeSource, Inc. noted that Refunzo saved them hours of effort and recovered funds they wouldn’t have pursued on their own.

One of Refunzo’s most valuable contributions lies in identifying inbound shipment errors, which account for nearly 40% of reimbursements. These issues can be tricky to track manually, but Refunzo’s system flags them automatically, ensuring you don’t miss out on money owed to you within Amazon’s complex fulfillment network.

Mistakes to Avoid and Tips for Success

To maximize your reimbursements and recover the money Amazon owes you, it’s crucial to avoid common mistakes in the claims process. By understanding these pitfalls and adopting effective strategies, you can significantly improve your success rate.

Common Filing Mistakes

One of the biggest errors sellers make is missing claim deadlines. Amazon enforces strict timeframes for each claim type, and failing to file within these windows means losing your money for good. With recent policy updates, as much as 40% of reimbursements may go unclaimed simply because sellers aren’t tracking deadlines closely enough.

Incomplete documentation is another frequent issue. Amazon requires specific files - like invoices, shipment details, and photos - to process claims. Missing even one document can lead to an automatic rejection. Make sure your paperwork is complete and correctly formatted to avoid delays.

Errors in product details, such as incorrect ASINs, SKUs, or quantities, can also derail your claims. These inaccuracies force Amazon to spend extra time verifying the information, which could push you closer to missing the deadline.

Submitting duplicate claims is a mistake that not only confuses Amazon’s system but can also harm your credibility as a seller. This often happens when sellers forget about previous submissions or fail to review their case history.

Finally, ignoring fee-related errors is a missed opportunity. Misclassified inventory can lead to overcharges, and without regular audits, these issues often go unnoticed. Sellers can recover 2–5% of FBA costs by identifying and addressing these discrepancies.

How to File Better Claims

Success starts with regular inventory monitoring and organized documentation. Run Inventory Adjustments Reports frequently to identify damaged items early. Keep your files well-organized and accessible, ensuring all claim details - like product info and supporting documents - are accurate and complete.

Stay proactive during the claims process by closely monitoring your submissions. Respond to Amazon’s requests within 24 hours to keep things moving and show your commitment to resolving the case.

Timing and follow-up are equally important. Set reminders to review and submit claims before deadlines pass. If a claim is denied, don’t give up. As Sparsha Chatterjee, Content Writer, advises:

"Review Amazon's guidelines and re-submit with additional documentation, or consider expert help to improve claim approval chances."

Finally, take preventive steps to reduce future claims. Use proper packaging and include clear handling instructions for shipments. Document your packaging process with photos, which can serve as evidence if damage occurs despite your precautions.

Sellers stand to lose up to 3% of their annual revenue, with 40% of reimbursements tied to inbound shipment errors. By adopting these practices, you can strengthen your claims and recover more of what you’re owed.

Conclusion

To effectively handle damaged inventory claims, follow these five steps: identify damaged items in your inventory, gather the necessary documentation, file the claim through Seller Central, track its progress, and confirm payment. These steps not only help you recover funds owed to you but also ensure your financial records remain accurate for tax purposes.

Did you know that up to 40% of eligible reimbursements often go unclaimed? Some sellers miss out on as much as 60% of what they’re owed - amounting to thousands of dollars in lost revenue. This isn’t just a missed opportunity; it’s money that could make a real difference to your business.

Being proactive about tracking reimbursements is critical for maintaining financial health. A large portion of these claims - nearly 40% - stems from inbound shipment errors. Regular monitoring and timely claim submissions can help recover these funds efficiently.

While manual claim filing is possible, automation can make the process much easier. Tools like Refunzo simplify the process and deliver better results, boasting a 90% approval rate and up to 166% higher recovery compared to manual efforts.

Take LifeSource, Inc., for example. In July 2025, this Amazon seller shared how Refunzo transformed their approach to reimbursements:

"I don't have time to check every report or case. Refunzo saved me hours and got back money I would've never chased on my own."

Little Dedi, another FBA seller, also uncovered significant unclaimed reimbursements through Refunzo:

"I had no idea Amazon owed me that much until I used Refunzo. It was so simple, I just connected my account and they handled the rest. Highly recommend if you sell FBA."

Refunzo’s lifetime free reconciliation service and performance-based pricing mean you only pay when they successfully recover reimbursements. With their 21-point reconciliation checks and comprehensive reporting, no detail is overlooked. Plus, their optional claim service manages everything - from creating cases to following up - so you can focus on growing your business.

FAQs

How do the 2025 policy changes impact reimbursement amounts for damaged inventory, and what can I do to ensure I receive the highest reimbursement possible?

Starting March 31, 2025, Amazon will shift to calculating reimbursements for damaged inventory based on manufacturing cost instead of retail price. This adjustment means sellers must keep precise and current records of their inventory costs to avoid losing money.

Here’s how you can make sure you get the reimbursement you're entitled to:

• Keep a close eye on inventory discrepancies to address issues as soon as they arise.

• Submit claims quickly to stay within the updated deadlines.

• Document everything thoroughly, including manufacturing costs and evidence of damage.

Tools like Refunzo can make this process easier. They automate account reconciliation, spot potential reimbursement opportunities, and assist with claims, saving you time and helping you recover eligible funds with less hassle.

What documents do I need to file a damaged inventory claim with Amazon, and how can I make sure everything is accurate?

To file a damaged inventory claim with Amazon, you'll need a few essential items: product invoices, shipment IDs and tracking information, inventory records, photos of the damaged goods, and detailed notes on their condition.

Make sure your documentation is thorough by verifying all details are correct, current, and clearly show the inventory and the damage. Keeping copies of all related communications and reports is also a smart move for your records.

What are the most common mistakes sellers make when filing for damaged inventory reimbursements, and how can I avoid them?

Sellers sometimes run into trouble by making common errors like sending in claims with missing documents, delaying their filings, failing to keep accurate records, overlooking minor discrepancies, or misclassifying damages. These slip-ups can lead to delays or even outright denials of reimbursements.

To steer clear of these pitfalls, ensure you include all necessary paperwork, submit claims as soon as possible, and maintain thorough records of your inventory and transactions. Make it a habit to regularly check your account for inconsistencies and carefully review all claim details before sending them in. Following these practices can greatly increase your chances of getting reimbursed without unnecessary hassle.

Related Blog Posts

• 5 Ways to Maximize Your Amazon FBA Reimbursement Claims

• Understanding Amazon's FBA Reimbursement Policy

• 7 Reasons Amazon Rejects FBA Claims

• Amazon FBA Inventory Adjustments: Key Reports