Amazon FBA Mistakes: How to Get Your Money Back as a Seller

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When it comes to storage and shipping of items, Fulfilment by Amazon (FBA) is the ideal option for many sellers. You might wonder why…

Of course, as a seller, it’s better to focus on growing your business instead of worrying about storage and shipment when you use the online giant’s logistic software. Many people who use it, however, are ignorant of the FBA mistakes that occur in Amazon warehouses.

These flaws in the FBA system most likely result in sellers losing money every day.

In this article, we’ll go over the types of FBA mistakes that might occur and how you can get your money back as a seller.

Ready? Go!

Well, First Things First – What Is FBA?

Fulfillment By Amazon (FBA) provides merchants with storage, packaging, and shipping support.

This relieves sellers of some of their responsibilities and allows them to be more flexible in their selling strategies as well as their business model. Sellers can send their goods to an Amazon fulfillment center, where they will be held in warehouses until they are sold.

When a customer places an order, Amazon staff prepare, package, and ship the item(s).

Why do so many sellers opt for Amazon FBA? There are some benefits to consider. 

Aside from the fact that Amazon handles fulfillment, there are numerous other advantages to using FBA.

For one thing, purchases placed through Amazon are often processed and dispatched faster than ones placed through retailers. FBA may increase the visibility of your items in the marketplace, which can lead to increased sales for you.

FBA also qualifies your items for Amazon Prime free shipping, and other customer-favorite choices. Finally, one of the most significant benefits of FBA is that Amazon is a well-known brand. It has worked hard to improve the checkout experience and gain consumer trust. 

However, it’s important to remember that Amazon FBA isn’t a charity, but rather a way for Amazon to make money.

As a result, the warehouse personnel is constantly under pressure, which implies that everything must be completed swiftly and efficiently.

This is the only way Amazon can profit from the service, but it also means the seller loses money. 

Source: Amazon

What Amazon FBA Mistakes Should You Consider?

There are numerous mistakes that can occur in Amazon’s warehouses. However, not all of them are catastrophic.

Let’s take a closer look at them:

1. The Item Is Damaged and Can No Longer Be Sold.

If things are damaged, Amazon will no longer sell the products and will dispose of them. 

With all the commotion in the dispatch center, it’s possible that things get disposed of incorrectly.

The item is also written off and no longer appears in the Amazon FBA inventory. Naturally, getting a refund is more difficult if the item you’re looking for is no longer in the records.

Additionally, it’s a well-known fact that goods go “missing” on occasion. It goes without saying that this is inconvenient for the seller. Anyway, a shortage will be shown by an inventory. This item will be written off as well.

Units that have been damaged or lost by the inbound carrier are quite straightforward to locate inside Amazon FBA reports. 

2. FBA Mistakes With Returns

Customer service has always been the main priority of Amazon, because it is based on the premise of “starting with the customer and working backward.” Customers of Amazon are aware of this nowadays. You know what we mean, right? 

It’s unclear whether Amazon consumers do the following on purpose, or whether it’s due to human mistakes. Buyers initiate a return request, and the funds are refunded before the merchandise is ever returned.

The return is held for 45 days by Amazon. Following that, nothing happens.

Thus, the seller has lost both money and goods, for which he would normally be entitled to reimbursement from Amazon – because the eCommerce giant is responsible for granting the customer a payment refund only when the goods have actually arrived at the return center.

Additionally, when a client returns an item, you want it to be added to your inventory, correct? Problems do arise from time to time during this procedure.

A returned item may be mistakenly attributed to the inventory of another seller or is just missing. In many cases, the item is returned and scanned at the warehouse, but it is never added to your FBA account because the second necessary scan never happens.

3. Error in FBA Fee Calculation

When you send an item to Amazon, you may usually input your own dimensions on the product detail page.

These are occasionally employed, but when they initially arrive, a cubiscan takes their place. This is a digital scanning (done by Amazon employees) that provides length, breadth, and height dimensions.

If you find that the FBA charge has escalated or has been mislabeled as a product, you must request a remedy. When you make the request, they will usually remeasure the merchandise very fast. They will utilize the cubiscan to swiftly measure the product dimensions and then update the product measurements.

This may be all that is required if you catch a product right away or if the mismeasurement does not affect the categorization of your item. You can contact Seller Central and describe the overcharging. Overpayments of storage or fulfillment costs based on erroneous measurements might be justified.

As you can see, depending on the number of things sold, sellers can lose a lot of money if all of these FBA failures are taken together.

How Do You Get Your Money Back?

Ok, let’s sum up what main FBA errors exist that enable you to demand reimbursement from Amazon.

The most common errors in the Amazon FBA process can be divided into three categories:

  • The item is damaged and can no longer be sold.
  • There are several return errors.
  • There is an issue with the FBA fee calculation.

Because the goods – and hence the liability for it – were transferred to Amazon, any subsequent loss of value during the fulfillment process must be covered by Amazon. Reimbursements, on the other hand, are not made automatically. In fact, it is the seller’s responsibility to produce proof of these value losses and to file a claim with Amazon for payment.

It is necessary to analyze and link up to twelve separate reports to the transactions in question.

When you factor in the potential of multiple time zones, the amount of time it will take to identify the FBA issues, and the specifics of each marketplace, the whole procedure becomes more than perplexing.

All of this should, of course, be done on a regular basis. However, no one will do that every day because it is extremely time-consuming. As a result, many sellers lose a lot of money by allowing their reimbursement claims to lapse.

We Recommend Using SellerLogic’s Lost & Found Tool

The time spent compiling reports and resolving open problems might quickly become unprofitable for the seller.

This is why, SellerLogic’s “Lost & Found” tool; is an automated solution that takes care of the tedious job for you.

Each visible transaction is created in its own process.

In most case types, this can be done retroactively for up to 18 months. Individual instances are written in an easy-to-understand format and saved as a template that may be copied. All you have to do is open the case in Seller Central, insert the SellerLogic-prepared text, and click “submit.”

Be sure: not a single one of your reimbursement claims will be lost thanks to their tool, and all you have to do is put in a small amount of effort.

Seller Logic’s staff can also assist you in communicating with Amazon!

Final Thoughts

Indeed, in the various fulfillment processes, Amazon FBA mistakes might occur repeatedly.

This is not surprising, given the increased complexity of these systems. However, the seller is entitled to compensation for many of these FBA failures!

The problem here is that analyzing all FBA reports on a regular basis is nearly impossible for the seller. You can get your money back, doesn’t it sound wonderful?

But here’s the good news: Sellerlogic developed a tool that can help you get your money back in no time at all.

And remember, instead of sifting through sheets of data for hours, sellers can use SellerLogic Lost & Found tool.

The application automatically detects every FBA problem and gives a text template to assist users in reporting and justifying the incidents to Amazon.

This duty, which would ordinarily consume several hours of your time, is reduced to a quick task. Furthermore, if any unanticipated issues with any of the scenarios arise, SellerLogic’s Customer Service will assist you during your communication with Amazon at no additional cost.

About SellerLogic

SellerLogic’s mission is the development of new, intelligent, and trendsetting solutions for the rapidly growing e-commerce market. The current portfolio includes two dynamic solutions that can be connected to the Amazon seller account with just a few clicks: the SellerLogic Repricer is a dynamic price adjustment tool that reacts quickly to price changes on Amazon, offers different pricing strategies, and wins the Boy Box at higher prices. The Lost & Found solution automatically analyzes all FBA transactions, shows hidden reimbursement claims without exception, and checks all rejected refund claims manually. Both solutions enable Amazon sellers to save time and increase productivity while generating maximum profits.

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