Study: Most Common Amazon FBA Case Errors in 2025

Amazon FBA sellers are losing up to 3% of their annual revenue due to case errors. From inventory mishaps to fee miscalculations, these errors are costing businesses billions. Here’s what you need to know to protect your profits:

• Top Issues:

  • Inventory Problems: Lost, misplaced, or incorrectly processed items lead to stock shortages and revenue loss.

  • Fee Overcharges: Incorrect product dimensions or weights result in inflated FBA fees.

  • Rejected Claims: Insufficient documentation for damaged inventory often leads to denied reimbursements.

• Key Changes in 2025:

  • Filing deadlines for claims are now as short as 60 days.

  • Reimbursements are based on manufacturing costs, reducing potential payouts by up to 40%.

• Quick Fixes:

  • Use automation tools like Refunzo to track discrepancies and file claims on time.

  • Regularly audit inventory, fees, and Amazon reports.

  • Keep detailed documentation for all shipments and issues.

Act fast and stay proactive. With tighter policies and shorter deadlines, automation and strategic case management are essential to avoid preventable losses.

How To Avoid Shipment Discrepancies When Selling On Amazon FBA

Most Common Amazon FBA Case Errors

Managing an Amazon FBA business comes with its fair share of challenges, and case errors can be particularly costly. Recent data highlights three major pitfalls for FBA sellers: inventory issues, fee miscalculations, and rejected damage claims. Let’s break these down.

Inventory Reconciliation Failures

Inventory errors can wreak havoc on your business, especially during peak sales periods. Misplaced items in warehouses often lead to stock shortages, while in-transit losses result in products disappearing on their way to FBA centers - creating permanent inventory gaps. Add processing errors to the mix, such as items being assigned to the wrong seller, and it’s clear how tracking and resolution can become a logistical nightmare. Returns also pose a problem when they aren’t restocked properly, leaving you with reduced inventory and no refunds.

Amazon’s strict 60-day reimbursement window for missing inventory means timing is everything. Tools like Refunzo’s automated 21-point reconciliation system can simplify the process by tracking adjustment pairs, categorizing issues by reason codes, and ensuring you stay within the reimbursement window. This kind of automation eliminates the guesswork and helps sellers recover funds they might otherwise lose.

Fee Miscalculations and Overcharges

Unlike inventory errors, fee miscalculations chip away at your profits in less obvious - but equally damaging - ways. For example, dimensional weight misclassifications occur when Amazon measures your products incorrectly during intake, leading to inflated shipping fees. Seasonal products, in particular, can rack up unexpected long-term storage charges if storage fee calculations are off.

"FBA fees are based on product dimensions and weight. These fees cover storage, picking, packing, and shipping. Errors in logging dimensions or weights can lead to inflated fees." - Ben Mathew, Amazon Expert

Sellers only have a 90-day window to dispute fee errors, so quick action is essential. Regular audits can help you catch discrepancies early. This might involve verifying product dimensions with tools like digital calipers or scheduling periodic cubiscan scans. Additionally, monthly reviews of reports like the FBA Inventory Age, Monthly Storage Fees, and Aged Inventory Surcharge reports are critical for identifying and addressing fee-related issues before they spiral out of control.

Rejected Damaged Inventory Claims

When it comes to damaged inventory, insufficient documentation is often the biggest hurdle to reimbursement. Amazon requires detailed evidence, such as photos, shipping records, and proper invoices, to validate claims. Unfortunately, damage is sometimes misclassified as "customer damage" or blamed on packaging issues, which can complicate the claims process.

The 60-day window for filing damage claims makes quick action non-negotiable. Sellers who delay gathering documentation or disputing inaccurate classifications risk losing their chance for reimbursement. Even with strong quality control measures - like protective packaging and detailed product descriptions - issues can still arise due to warehouse handling or errors during post-receipt processing.

The solution? A systematic approach. Start by immediately collecting invoices and shipping records, take clear photos of any visible damage, and challenge misclassifications with solid evidence. Being proactive with documentation not only improves your chances of reimbursement but also helps preserve your account health and minimize revenue losses in the long run.

Policy Deadlines and Compliance Issues

Amazon's changing policies are keeping FBA sellers on their toes. Missing important deadlines or failing to adjust to new rules can lead to hefty financial setbacks and time-consuming case management problems.

Missed Reimbursement Windows

One of the biggest recent changes is Amazon's reduction of the reimbursement claim window - from 18 months to just 60 days. Before October 23, 2024, sellers had a year and a half to file claims for lost or damaged inventory. Now, most claims must be submitted within two months, leaving sellers with far less time to identify and report issues.

Each type of claim comes with its own timeline:

• Lost or damaged in fulfillment centers: Claims must be filed within 60 days of the date the item is reported lost or damaged.

• FBA customer returns: The filing window is between 60 and 120 days after the refund or replacement date.

• Removal claims: These are more complicated. For items lost in transit, claims must be filed 15 to 75 days after shipment creation. For all other removal claims, sellers have 60 days from the item's delivery back to them.

With these tighter timeframes, manual reviews just don’t cut it anymore. Sellers need automated systems to track deadlines and ensure compliance. Continuous monitoring of inventory and shipments is now a must to catch discrepancies early. Digital tools for record-keeping can simplify the process, keeping invoices, purchase orders, and shipment records organized and ready when needed.

Many sellers are turning to inventory management systems that flag discrepancies in real time. For example, the FBA Inventory Reconciliation Report can help sellers track lost or damaged items as they happen, rather than weeks later. Setting up automatic alerts for inventory adjustments and regularly downloading transaction logs can also help prevent missed claims.

These changes are just the beginning, as Amazon's 2025 policy overhaul introduces even more challenges.

2025 Policy Changes

Starting March 10, 2025, Amazon will change how reimbursements are calculated, basing them on manufacturing cost rather than the selling price.

"Manufacturing cost means your cost to source a product from a manufacturer, wholesaler, reseller, or produce the item if you are the manufacturer. It excludes costs such as shipping, handling, customs duties, or other costs." - News_Amazon

This shift means sellers must now decide how Amazon determines their manufacturing costs. They can either accept Amazon's estimate or provide their own figures through the Inventory Defect and Reimbursement portal. Experts warn this could lead to a drop of up to 40% in potential reimbursements, with some sellers losing as much as 60% compared to the previous system.

While Amazon is introducing automatic reimbursements for items lost in fulfillment centers starting January 15, 2025, this doesn’t cover all scenarios. Sellers will still need robust monitoring systems to ensure nothing slips through the cracks.

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

To adapt, sellers should review their workflows and ensure manufacturing cost estimates are accurate. Incorrect estimates can directly affect reimbursement amounts, so keeping detailed, precise records is more important than ever. Many sellers are also adjusting their pricing strategies, adding extra margin to account for potential reimbursement reductions under the new system.

With the combination of shorter deadlines and reduced reimbursement amounts, staying compliant has become a lot tougher. Sellers who don’t update their processes risk losing money that proper planning and monitoring could have saved.

Error Prevention Through Automation and Best Practices

With Amazon's evolving deadlines and updated reimbursement methods, relying on manual processes just doesn’t cut it anymore. In 2025, sellers need automation tools and strategic case management to maintain profitability.

Automated Reconciliation Solutions

Automation has completely changed how sellers handle FBA discrepancies. These platforms monitor transactions continuously, flag issues automatically, and prepare the necessary documentation for claims. The trick is finding tools that cover all potential problem areas effectively.

Take Refunzo, for instance. It offers a lifetime free reconciliation service that applies a 21-point automated criteria check. From misplaced inventory to fee overcharges, the platform keeps a constant eye on issues. What makes these tools stand out is their ability to catch discrepancies in real time - long before filing windows close.

The best tools integrate directly with Amazon Seller Central, cross-referencing reports and highlighting discrepancies instantly. This eliminates the hassle of manually downloading and comparing spreadsheets, cutting down on human error and missed opportunities.

Another advantage of advanced platforms is their ability to handle documentation. They automatically organize evidence in Amazon-approved formats and create customized evidence packages for different claim types. For sellers operating in multiple regions, global support is key. The top platforms monitor accounts across various Amazon marketplaces and time zones, ensuring no recovery opportunity slips through the cracks.

"We're able to watch our sales every single day [and] look at our inventory levels." - Jill Taft, Founder, Logic Products

The financial benefits of automation are hard to ignore. Data shows that sellers using comprehensive reconciliation tools recover more funds compared to those sticking with manual processes. Continuous monitoring ensures fewer errors and better outcomes.

But automation alone isn’t enough. Pairing it with strategic case management can further reduce risks.

Better Case Management Strategies

While automation handles the technical side, strategic case management ensures nothing falls through the cracks.

Start by reviewing Amazon’s reimbursement policies monthly. Frequent updates mean sellers need to stay on top of changes. For example, the switch to manufacturing cost-based calculations requires different documentation compared to the older selling price system. Keeping a checklist of policy updates and their impact can prevent costly mistakes.

Training your team is equally important. When multiple people manage inventory and cases, everyone needs to understand the 60-day filing windows and how to spot reimbursement opportunities. Update workflows to track manufacturing costs accurately, including supplier invoices and related expenses, in an organized format.

Using standardized templates for common claim types can also reduce errors. Pre-formatted documentation packages, complete with checklists for required documents, deadlines, and follow-up steps, make filing faster and more accurate.

When discrepancies arise, reach out to Amazon support proactively instead of waiting for issues to resolve on their own. Keeping detailed records of all interactions can help prevent minor problems from escalating.

For high-value claims, consider a two-person verification system. Having a second team member review documentation and calculations before submission can catch errors that might lead to rejections. This is especially useful for complex cases involving multiple shipments or unusual circumstances.

Finally, schedule regular reconciliations every 30 to 45 days. This ensures issues are caught well within filing windows while the details are still fresh. By combining automated monitoring with structured manual processes, sellers create a safety net that reduces rejected claims and boosts overall recovery rates.

Key Lessons from the Study

Amazon FBA sellers face staggering losses of $1.2 billion annually due to preventable case management errors. These losses stem from a combination of issues, including customer returns, misplaced inventory, damaged goods, and unnoticed discrepancies in inbound shipments. It’s a costly reality that many sellers grapple with.

Adding to the challenge, new reimbursement policies - effective March 10, 2025 - will only cover manufacturing costs. This means expenses like shipping, handling, duties, freight, and warehousing will no longer be reimbursed, making it more important than ever to prevent errors before they happen.

Another critical takeaway from the study is the financial impact of missing strict filing deadlines. Overlooking these deadlines can lead to significant revenue losses, making timely action a non-negotiable part of an effective FBA strategy.

To tackle these challenges, automation has become a game-changer. Sellers using tools like Refunzo's automated 21-point system recover more funds compared to those relying on manual processes. Automation not only saves time but also ensures a thorough review of potential errors.

However, automation alone isn’t enough. The most successful sellers combine it with regular audits and stay on top of Amazon’s policy updates. As Amazon FBA expert Tomer David explains:

"Whenever Amazon introduces a change, it's an opportunity for sellers who adapt quickly to gain a competitive edge."

In short, automated reconciliation and proactive case management are essential for navigating the complexities of the FBA process and minimizing preventable losses.

FAQs

What are the best ways for Amazon FBA sellers to manage inventory and avoid common errors in 2025?

To keep inventory under control and reduce errors in 2025, Amazon FBA sellers should prioritize a few smart strategies. Start by keeping a close eye on inventory levels using Amazon's tools like Inventory Health and Aged Inventory reports. These can help you spot slow-moving products or items piling up in stock. Setting up automatic reorder points is another great move - it ensures you restock on time and avoid the dreaded stockouts that can disrupt your business.

It’s also crucial to build solid relationships with your suppliers. This helps you handle supply chain hiccups and ensures your products stay available when customers need them. On top of that, take time to review your sales trends and adjust inventory levels based on demand. This way, you can strike a balance - keeping enough stock without overloading your storage.

By staying organized and thinking ahead, you can sidestep common inventory headaches and keep your operations running smoothly.

How can Amazon FBA sellers ensure accurate reimbursements under the updated 2025 policy changes?

To ensure you receive accurate reimbursements under Amazon FBA's 2025 policy updates, it’s important to take a few key steps. First, make sure your manufacturing costs are correctly entered in Seller Central. Since reimbursements will now be based on manufacturing costs rather than retail prices, outdated or incorrect information could result in financial setbacks.

Also, keep a close eye on the new claim submission deadlines. For lost or damaged inventory, claims must be filed within 60 days. For customer return claims, the window ranges from 45 to 105 days. Staying on top of these deadlines is essential to avoid missing out on potential reimbursements. Regularly reviewing your account and monitoring for inventory discrepancies can help you address any issues before they become costly.

How can automation tools like Refunzo help Amazon FBA sellers resolve discrepancies more accurately and efficiently?

Automation tools such as Refunzo simplify the reconciliation process by conducting over 20 in-depth checks to spot issues in inventory, fees, and other discrepancies. This helps reduce human error and quickly highlights opportunities for reimbursements.

These tools also produce clear, detailed reports that give sellers actionable insights, making it easier to address problems and recover lost funds. With automation taking care of the tedious work, sellers can dedicate more time to expanding their business rather than getting bogged down with complicated case resolutions.

Related Blog Posts

• Understanding Amazon's FBA Reimbursement Policy

• FBA Reimbursement FAQs: Expert Answers for Sellers

• Amazon FBA Fee Errors: Detection and Resolution Guide

• How Data Collection Impacts FBA Reimbursements