Amazon Removal Order Reimbursements Explained

Amazon sellers often lose money due to unprocessed removal orders. Here's what you need to know to recover your funds:

• What Are Removal Orders?

  These are requests to return or dispose of your FBA inventory. Amazon charges fees based on size and weight, ranging from $0.25 to $0.60 per unit. Processing can take 10–90 days.

• Why Reimbursements Matter:

  If Amazon loses, damages, or fails to process your inventory, you can file a claim. Missed reimbursements could cost you 1-3% of annual revenue.

• New Filing Deadlines:

  Amazon recently shortened claim windows:

  • Lost items: File within 15–75 days of shipment creation.

  • Damaged items: File within 60 days of delivery.

• What Qualifies for Reimbursement?

  Lost or damaged items, unused shipping labels, and grading disputes are eligible. Customer-damaged or defective items are not.

• How to File a Claim:

  Use Seller Central reports to track issues. File claims with proper documentation (e.g., proof of delivery, photos of damage).

Quick Tip: Use tools like Refunzo to automate tracking and claims, making the process faster and more accurate.

Stay organized and act quickly to avoid losing money on unprocessed removal orders.

How to Request Reimbursement for Damaged Amazon FBA Removal Orders

Who Qualifies for Unprocessed Removal Order Reimbursements

Not all removal order issues are eligible for reimbursement. Amazon has clear guidelines that determine whether you can recover funds. Knowing these rules helps you focus on valid claims and avoid wasting time on cases that don’t qualify.

Situations That Qualify for Reimbursements

You may be eligible for reimbursement in several specific scenarios, including when Amazon loses or damages your inventory during the removal process, fails to process a removal order correctly, or charges you for unused shipping labels.

One of the most common cases is lost inventory during transit. This happens when Amazon ships your removal order but the items never make it to your specified address. Similarly, damaged items received during removal are also eligible for claims. Unlike lost items, you can file a claim for damaged goods as soon as they arrive.

Another qualifying situation involves grading disputes. If Amazon incorrectly assesses the condition of your returned items and charges you removal fees based on the wrong grading, you can dispute those charges. Lastly, unused shipping labels can also be claimed. If Amazon issues shipping labels that aren’t used due to a processing error, you shouldn’t be charged for them.

It’s important to note that Amazon only takes responsibility for items once they enter the removal process. Any issues that existed before this point are not eligible for reimbursement.

What Doesn't Qualify for Reimbursements

Not every issue qualifies for reimbursement, and knowing what’s excluded can save you time and frustration.

For example, customer-damaged items are not eligible. If an item was damaged by a customer prior to your removal request, Amazon won’t reimburse you for that. Similarly, defective products are excluded if the defects were present when the inventory was sent to Amazon.

Other exclusions include restricted inventory, self-canceled removal orders, and cases involving suspended or blocked FBA seller accounts. Additionally, losses caused by natural disasters or other "Act of God" events are not covered under Amazon’s force majeure clauses. Lastly, seller mistakes - such as incorrect packaging or providing the wrong shipping address - are not eligible, as the error originated with the seller.

Understanding these exclusions helps you focus your efforts on claims that have a chance of being approved.

Time Limits for Filing Claims

When it comes to eligible claims, timing is everything. Amazon has significantly reduced the window for filing claims, moving from an 18-month timeframe to much stricter deadlines. If you miss these deadlines, you lose the opportunity for reimbursement permanently.

To stay on top of this, it’s essential to proactively monitor your removal orders. Regularly reviewing reports like the Removal Order Detail report, the Removal Shipment Detail report, and the Reimbursements report in Seller Central can help you track shipments and prevent duplicate claims. Keep in mind that Amazon may issue "COMPENSATED_CLAWBACK" transactions if they later find a reimbursement was made in error or if a previously lost item is recovered and returned to inventory.

With billing errors and discrepancies potentially draining 1-3% of your yearly revenue, keeping a close eye on deadlines and documentation is critical for protecting your bottom line.

How to File Reimbursement Claims Step by Step

Filing reimbursement claims requires a methodical approach. With claim windows ranging between 60 and 75 days, staying organized and timely is essential. Here's a step-by-step guide to help you navigate the process effectively.

Identifying Cases That Need Reimbursement

Begin by using reports in Seller Central to pinpoint mishandled removal orders. These reports provide a detailed snapshot of your inventory and can help you identify discrepancies.

• Removal Order Detail Report: This report reveals the status and dates of your removal orders - whether they are completed, canceled, or still pending. Pay close attention to orders that have been pending for an unusually long time or show unexpected status updates.

• Removal Shipment Detail Report: This report provides shipment tracking and status details. If a shipment is marked as "shipped" but the items were never received, it could indicate a lost inventory issue.

• Reimbursements Report: Before filing a claim, check this report to see if Amazon has already reimbursed you. Search by FNSKU to avoid submitting duplicate claims.

To ensure accuracy, match removal requests with actual shipments using order IDs and SKUs. Compare the requested quantities to the actual quantities shipped, and verify that removal fees correspond to the items removed. If discrepancies exist, document them carefully before filing your claim.

Submitting a Manual Reimbursement Claim

Once you've identified an issue, gather the necessary documentation. Amazon requires specific evidence depending on the claim type:

• For lost inventory claims, include:

  • Purchase Order

  • Shipping documents (shipment ID, packing label, and tracking details)

  • Proof of delivery

  • A screenshot of the Inventory Adjustment Report

• For damaged inventory claims, provide:

  • Photographic evidence of the damage

  • Any relevant communication showing how the damage impacted sales

  • Amazon's condition notes

When submitting your claim, clearly outline the financial impact, including specific dollar amounts wherever possible. Timing is critical:

• For items lost in transit to your returns address, wait at least 15 days after the last confirmed movement before filing.

• Submit all lost inventory claims within 75 days of the shipment creation date.

• File claims for damaged items or grading disputes within 60 days of delivery.

Accuracy is key when submitting claims. Double-check all details and ensure your documentation is complete to avoid delays or rejections.

The Importance of Regular Account Reviews

Frequent account reviews can help you catch missed reimbursement opportunities. Aim to review your reports weekly, or monthly if you manage lower inventory volumes.

During these reviews, focus on customer returns and ensure that processing and fees are accurate. Cross-reference Amazon's data with your own inventory records to spot inconsistencies. Keep detailed records of order IDs, dates, claim amounts, and any communication with Amazon - these can be invaluable for managing multiple claims or following up on delayed responses.

Amazon’s reimbursement policies are constantly changing, so staying informed is critical. For sellers with large inventories, tracking all potential reimbursements manually can be overwhelming. Automated tools like Refunzo can simplify this process by monitoring your account with over 20 criteria checks, helping you identify reimbursement opportunities you might otherwise miss.

Policy Updates and How They Affect You

On October 23, 2024, Amazon introduced changes to its FBA reimbursement policies, significantly shortening the time sellers have to submit claims. These updates mean sellers need to adjust how they monitor their accounts and handle reimbursements.

What Changed in Amazon's Policies

The biggest shift is in the timeframe for submitting reimbursement claims. Amazon reduced the claim period from 18 months to just 60 days for most cases - an 88.9% reduction that caught many sellers by surprise. For removal orders, the rules are now even stricter: claims for items lost in transit must be submitted within 15 to 75 days of the shipment creation date. All other removal claims must be filed within 60 days of delivery, replacing the previous 18-month allowance.

Additionally, sellers still need to manually file claims for most removal order issues. The table below highlights the changes:

Old vs New Reimbursement Deadlines

What These Changes Mean for Sellers

These new policies demand a more hands-on approach to account management. With significantly shorter deadlines, sellers must shift to weekly monitoring and real-time inventory tracking. As Lesley Hensell from Riverbend Consulting explains:

"Gone are the days of having 18 months to file claims for lost or damaged inventory. Now, the window has shrunk to just 60 days in most cases, which means the clock is ticking much faster."

For sellers managing high volumes of removal orders, this means no more relying on infrequent account reviews to catch reimbursement opportunities. Instead, real-time systems and automation tools are now essential. These tools can track removal orders, identify discrepancies, and flag potential claims within the tight new deadlines.

To adapt, sellers should focus on creating workflows that track removal requests from start to finish. Actively monitoring shipment statuses and preparing claim documentation as soon as issues arise will be critical. With the shorter claim windows, there’s little room for error - speed and preparation are now the keys to recovering funds successfully.

Using Tools to Simplify Reimbursement Claims

Filing reimbursement claims on time is critical, and automation tools have become a game-changer for sellers aiming to avoid missed opportunities. With tight deadlines and the complexities of tracking claims manually, these tools are now essential for staying ahead. They not only identify potential reimbursements but also simplify the entire process, making it more efficient.

How Automation Tools Help

Automation tools work around the clock, scanning for discrepancies and flagging issues before deadlines pass. They review inventory adjustments, fee calculations, and removal order statuses to uncover errors that qualify for reimbursements. This is especially important since up to 20% of inventory is misclassified, leading to overcharges that often go unnoticed.

These tools can recover an estimated 2-5% of FBA costs by catching errors early. With nearly 40% of reimbursements tied to inbound shipment errors, having a system that tracks these from the start can mean the difference between recovering funds or losing them to expired deadlines.

Some platforms even offer pre-written claim messages, saving time and ensuring all necessary details are included for successful submissions. One standout tool in this space is Refunzo.

Refunzo's Reimbursement Features

Refunzo takes a thorough approach to FBA reconciliation with its 21-point account reconciliation check. This feature audits everything from fulfillment fees to inventory discrepancies, identifying overcharges related to product weight, dimensions, and processing errors. Its document management system also simplifies the paperwork Amazon requires for claims.

Another time-saving feature is Refunzo's Proof of Delivery document retrieval, which works with major carriers like FedEx, UPS, Amazon Freight, and Amazon Global Logistics. This eliminates the hassle of manually requesting shipping documentation for lost or damaged removal orders.

The platform provides detailed reports that break down exactly how much Amazon owes you, categorized by issue type. A user-friendly dashboard tracks recovery progress in real-time, offering full transparency. Refunzo has earned 5 out of 5 stars on the Amazon Selling Partner Appstore, with users praising its ability to improve financial controls and perform precise audits.

"Refunzo's precision in auditing Amazon accounts has notably enhanced our sales. By identifying inefficiencies and refund opportunities, it provides a dual advantage for sales improvement." - KONDOR BLUE

Benefits of Using Refunzo

Refunzo's reconciliation service is completely free for life. There’s no subscription fee or upfront cost - you only pay if you opt for their claim filing service, which charges 15% of recovered funds, capped at $5,000. This ensures even large reimbursements won’t lead to excessive fees.

If you prefer handling claims yourself, the free reconciliation reports include all the documentation needed for submissions. For sellers who want a hands-off experience, Refunzo’s team manages everything - from case creation to evidence submission and follow-ups with Amazon - offering personalized support for each claim.

By automating tedious processes, Refunzo helps sellers recover lost funds and optimize their FBA operations. With experts estimating that up to 40% of reimbursements could go unclaimed under new policies, having a system that catches every opportunity is crucial for profitability.

Professional claim filing services generally achieve a 90% success rate and recover 166% more funds compared to manual efforts. Considering that retailers lose $50 billion annually due to inefficient return logistics, having expert support for reimbursement claims can make a significant difference to your bottom line.

Getting the Most from Your Reimbursement Claims

If you're aiming to succeed with removal order reimbursements, you'll need to act quickly, stay organized, and use the right tools. With Amazon's updated policies and tighter filing deadlines, it's more important than ever to have a solid strategy in place. Here's how you can ensure you're not leaving money on the table.

Amazon's stricter deadlines have changed the game for sellers. Reports indicate that nearly 40% of potential reimbursements could go unclaimed due to these compressed timelines. To protect your profits, adopting a systematic approach is no longer optional - it's a necessity.

Key Points to Keep in Mind

Meeting deadlines and providing thorough documentation are non-negotiable. When submitting claims, ensure your documentation is complete and accurate from the start. Missing or unclear information can lead to delays or outright denials, which is a big problem when you're working within tight timeframes.

Keep a close eye on your claim status and be ready to appeal if necessary. Even valid claims can get rejected the first time around, so persistence, backed by solid evidence, is often required to recover your funds.

With these basics covered, here’s how you can take action to secure your reimbursements effectively.

Steps to Take

Start by auditing your account. Cross-check your removal orders against reimbursement reports to identify claims that are approaching their filing deadlines. Setting up weekly reviews can help you stay on top of deadlines and spot recurring issues before they escalate.

For added efficiency, consider using tools like Refunzo’s lifetime free reconciliation service. Their automated 21-point reconciliation checks can identify discrepancies that might go unnoticed during manual reviews. Plus, their detailed reports include everything you need to submit claims. If you’d rather not handle the process yourself, Refunzo offers a claim filing service that takes care of everything for 15% of the refunded amount (capped at $5,000).

With such a narrow window for filing, having a streamlined system can make a big difference. Data shows that professional claim filing services can achieve success rates of around 90% and recover up to 166% more funds compared to manual efforts. In today’s fast-moving FBA landscape, having the right tools and processes in place can help you protect your profits and keep your business running smoothly.

FAQs

How can I stay on top of Amazon's reimbursement claim deadlines in 2025?

To stay on top of Amazon's reimbursement claim deadlines in 2025, it's crucial to act promptly. For warehouse lost or damaged items, you have a 60-day window to file a claim. Meanwhile, FBA customer return claims offer a slightly broader timeframe of 60 to 120 days, depending on the specifics. These deadlines are calculated from the date of the incident or refund.

Make it a habit to regularly check your Seller Central account and maintain thorough records of your transactions, including receipts and shipment details. Staying organized and vigilant can save you from missing out on eligible reimbursements. If you’re looking for a simpler way to manage this, tools like Refunzo can automate the reconciliation process and make filing claims much easier.

What documents do I need to file a reimbursement claim for lost or damaged inventory on Amazon?

To submit a reimbursement claim for lost or damaged inventory, you'll need to gather several important documents to support your case. These include:

• Original shipping plan and shipment tracking details to verify the shipment's existence and journey.

• Proof of inventory registration in FBA, such as reports confirming the item was received into the system.

• Invoices or receipts to establish the item's value and its original condition.

• Reports like the Removal Order Detail and Removal Shipment Detail to provide specific shipment details and status updates.

Having all these documents prepared and accurate will make the claims process smoother and improve your chances of getting approval.

How does Refunzo simplify the process of identifying and claiming Amazon FBA reimbursements?

Refunzo takes the hassle out of reimbursements by automatically spotting account discrepancies using over 20 different criteria. It creates clear, detailed reports that pinpoint potential reimbursements, eliminating the need for tedious manual checks.

What’s more, Refunzo gives you options. You can choose to file claims on your own or let their team handle it for a capped commission fee. This approach ensures precision, saves time, and provides peace of mind for Amazon sellers.

Related Blog Posts

• Understanding Amazon's FBA Reimbursement Policy

• How to Track Amazon FBA Reimbursement Cases

• Amazon FBA Inventory Adjustments: Key Reports

• Amazon FBA Reimbursements: Cash Flow Benefits