Every year, Amazon FBA sellers lose thousands of dollars to inventory that gets lost, damaged, or misplaced inside Amazon’s fulfillment network. This will happen to you sooner or later. The question is: Will you let it become a financial burden on your business? Because if you don’t take action, no one will. And with each passing day, the chance of requesting an FBA inventory reimbursement diminishes greatly. Keep reading to learn why.
What is an FBA Inventory Reimbursement?
An Amazon FBA Reimbursement is a payment issued to a seller when Amazon loses or damages inventory while moving it through its fulfillment network.
While Amazon has policies to issue reimbursements automatically, they do not always do so. That’s why it’s important for sellers to monitor their shipments and open support interactions to issue Amazon FBA reimbursements.
Critical Factors About FBA Reimbursements
- 90-Day Deadline: Sellers must address lost units or pursue a reimbursement within 90 days, or Amazon will close the opportunity to get money back.
- Reimbursement Amount: Amazon only refunds the “cost of goods” provided in the listing. If no cost is provided, Amazon will estimate a value, which is often lower than the actual cost.
- Shipment Status: Discrepancies should only be evaluated once a shipment is in “closed” status. Items in “receiving” or “in transit” may still be moving through the system.
- Proof of Ownership and Delivery: To successfully claim a reimbursement, sellers must provide specific evidence like proof of purchase (invoices) or packing documents signed by the carrier to prove the items were sent.
- Labeling Accuracy: If inventory issues are caused by unscanable or incorrect labels, Amazon may charge the seller a fee to fix the tags, even if the product is eventually found.
How to Get an FBA Inventory Reimbursement
Step 1: Identify Lost or Damaged Inventory
In Seller Central, go to Shipments in the Inventory tab.
In New Seller Central, you have to click on Manage Inventory under Supply Chain in the sidebar:
This section gives you a full record of every shipment you’ve sent to Amazon’s fulfillment centers.
For this article, we’ll be paying special attention at these three main columns:
- Status: You’ll mainly see Receiving, Closed or Canceled statuses. However, the shipment status can also be Working, Ready to ship, Shipped, In transit, Delivered and Deleted.
- Units Located: What Amazon has received from your shipment
- Units Expected: What’s expected from your shipment
Now that you are here, this is what you’re doing next.
First, filter all shipments by Closed. Why? Because you can’t really assume a loss for a shipment that’s still in Receiving, Shipped or In Transit statuses.
Only when the shipment is fully closed can you truly see whether Amazon has lost any units or not.
Best-case scenario, all units in your shipment have been received and processed by Amazon in due time.
But it can also happen that Amazon has fewer units than expected.
You check this by comparing the located and expected units. If there’s a difference, there’s a problem.
If this is your current situation and no reimbursement has been given, then it is time to open up a case.
Remember: This has to happen before 90 days have passed since the shipment was closed. In the case above, a reimbursement isn’t possible anymore according to Amazon’s Policies.
How to Open a Case with Amazon Support
Before you talk with Support, make sure to get the following documentation. It’ll make things easier for everyone.
- Shipment ID and affected ASINs
- Screenshots: Capture both the shipment discrepancy and the “Closed” status as visual proof (like the image above)
- Proof of ownership: Purchase invoices from your supplier showing payment for the units shipped.
- Signed packing slip from your carrier: This document confirms the shipment was picked up and delivered to Amazon, eliminating any doubt that the units ever left the distribution center.
Now, the next step is to go over to Get help and resources in the top right of the Seller Central Home page:
And click on Submit a reimbursement claim dispute.
This will lead you to Amazon’s automated process for FBA inventory reimbursement claims. Here you will upload all the documents mentioned earlier and briefly explain the issue.
Reimbursement claims are pretty common. So if you did everything right and you’re within the 90-day range, there will be no issue.
Remember that Amazon will pay you your Cost of Goods.
One more thing: if inventory is flagged as “lost” because units couldn’t be scanned due to labeling issues on your end, Amazon may still reimburse you, but will also charge a relabeling fee.
What Amazon Looks For in an FBA Reimbursement Claim
Amazon is not just looking for a message saying units are missing.
They want proof that the inventory existed, was sent correctly, and became lost or damaged while under Amazon’s control.
A strong reimbursement claim should clearly show:
What shipment or inventory event is being disputed
Which ASINs or FNSKUs are affected
How many units are missing or damaged
When the shipment was delivered or closed
What proof shows the units were sent
What reimbursement or investigation you are requesting
Keep the case focused. Do not over-explain or add unnecessary background.
The goal is to make the issue easy for Amazon to review.
If the claim is rejected, review the reason carefully. Sometimes Amazon needs a cleaner invoice, better proof of delivery, or clearer documentation connecting the missing units to the shipment.
How to Avoid Losing Money to Lost Inventory on Amazon
As we mentioned earlier, Amazon will not notify you when units are lost. In many cases you have to check on your own. Here are some best practices to avoid losing money because of these types of issues.
Review your shipments
We always recommend that you manually audit your shipments.
How often you audit depends on your shipping volume.
High-volume sellers with frequent shipments should check closed shipments weekly. Sellers who ship less often can do it monthly. You know your frequency.
The point is to catch discrepancies well within the 90-day window, so you have time to gather documents and open a case with Support.
Consider Automation Tools
For high-volume accounts, doing this manually every week gets tedious fast. Third-party tools like GETIDA, SellerRise, and TrueUps connect to your Seller Central account, scan for discrepancies, and automatically open cases with Amazon.
The limit of these tools: they cannot generate proof of ownership and others. Those documents have to come from you.
Why Sellers Still Need Manual Oversight
Automation tools can be helpful, especially for high-volume sellers.
They can scan for possible reimbursement opportunities, identify discrepancies, and reduce the time your team spends digging through reports.
But automation does not replace seller oversight.
Third-party tools usually cannot create supplier invoices, confirm manufacturing cost, explain shipment-specific context, or validate every operational detail. That information still has to come from the seller or the team managing the account.
This is why the best reimbursement process usually combines automation with manual review.
The tool helps identify issues.
The operator confirms whether the claim is valid.
Together, that creates a better chance of recovering money without submitting weak or incomplete claims.
Vendor Central Sellers
If you sell through Vendor Central, the reimbursement process works similarly, but far fewer automated tools exist for those accounts. Most of the audit work needs to be done manually.
Conclusion
Lost and damaged inventory is part of selling through Amazon FBA.
The mistake is assuming Amazon will catch every issue and reimburse you automatically.
Some reimbursements happen without seller action, but others require monitoring, documentation, and follow-up. If you are not reviewing closed shipments, reimbursement reports, inventory adjustments, and cost records, money can quietly slip through the cracks.
The best approach is simple.
Track your shipments. Keep clean documentation. Confirm your manufacturing costs. Review reimbursement reports regularly. When something does not look right, act quickly and submit a clear claim with the right supporting evidence.
FBA reimbursements are not just an accounting detail. They are part of protecting profitability.
For brands shipping inventory into Amazon every month, even small discrepancies can add up fast.
Frequently Asked Questions About Amazon FBA Inventory Reimbursement
What is an Amazon FBA inventory reimbursement?
An Amazon FBA inventory reimbursement is compensation Amazon provides when eligible inventory is lost or damaged while under Amazon’s control.
This can include inventory lost in a fulfillment center, damaged during Amazon handling, or missing from an inbound shipment.
Does Amazon automatically reimburse sellers for lost FBA inventory?
Sometimes.
Amazon may automatically reimburse sellers for certain lost or damaged inventory events. However, sellers should still review shipment discrepancies, inventory adjustment reports, and reimbursement reports because not every issue is always caught automatically.
How do I know if Amazon lost my FBA inventory?
Start by reviewing your shipment status in Seller Central.
Once a shipment is closed, compare the number of units expected against the number of units received. If Amazon received fewer units than expected and no reimbursement was issued, you may need to investigate further.
Where do I find lost inventory in Seller Central?
You can review shipment discrepancies by going to your shipment records inside Seller Central.
You can also review inventory adjustments and reimbursement reports to see whether Amazon has already marked units as lost, found, damaged, or reimbursed.
How do I file an FBA reimbursement claim?
To file an FBA reimbursement claim, gather the shipment ID, affected ASINs or FNSKUs, proof of ownership, supplier invoices, packing slips, and any supporting screenshots.
Then open a case with Amazon Support or use the reimbursement claim workflow available in Seller Central.
What documents do I need for an FBA reimbursement claim?
Common documents include supplier invoices, proof of purchase, packing slips, carrier documents, shipment IDs, affected ASINs, affected FNSKUs, and screenshots showing the shipment discrepancy.
Amazon may also ask for manufacturing cost information.
How does Amazon calculate FBA reimbursement value?
Amazon generally calculates reimbursement based on manufacturing cost for inventory lost or damaged before a customer order.
If sellers do not provide accurate cost information, Amazon may estimate the value.
Does Amazon reimburse the retail price of lost inventory?
Not always.
For many lost or damaged inventory cases, Amazon reimburses based on manufacturing cost rather than the retail selling price. That is why sellers should keep accurate product cost records in Seller Central.
What is the deadline to file an FBA reimbursement claim?
The deadline depends on the claim type.
Shipment to Amazon claims, fulfillment center operations claims, customer return claims, and removal claims can each follow different eligibility windows. Sellers should check the specific claim type in Seller Central before assuming one universal deadline.
Should I wait until a shipment is closed before filing a claim?
Yes, in most cases.
If a shipment is still receiving, in transit, or being processed, Amazon may still locate additional units. A closed shipment gives you a clearer view of what Amazon actually received.
Can Amazon reject an FBA reimbursement claim?
Yes.
Amazon may reject a claim if documentation is missing, the shipment is not eligible, the units were already reimbursed, the discrepancy is not proven, or the issue falls outside the applicable claim window.
What should I do if Amazon reimburses the wrong amount?
If the reimbursement amount looks incorrect, review your manufacturing cost records and supporting invoices.
If you can prove the value is wrong, open a case and provide documentation showing the correct cost.
Are FBA reimbursement tools worth using?
FBA reimbursement tools can be useful for high-volume sellers because they help identify potential discrepancies faster.
However, sellers still need to maintain accurate invoices, cost records, and shipment documentation. Automation helps with detection, but it does not replace clean operational records.
How often should sellers audit FBA inventory?
High-volume sellers should review FBA inventory and shipment discrepancies weekly.
Lower-volume sellers may be able to review monthly. The important part is building a consistent process so missing units are caught before claim windows close.
Why do FBA reimbursements matter?
FBA reimbursements protect profitability.
Lost or damaged inventory may seem small on a single shipment, but over time, missing units, underpaid reimbursements, and unresolved discrepancies can create a meaningful financial leak in the business.
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How Much Money Is Sitting in Your FBA Inventory Reports?
Most sellers do not realize how much money gets tied up in missing units, shipment discrepancies, damaged inventory, and underpaid reimbursements.
The problem is that Amazon does not always make these issues obvious. If you are not reviewing your reports, tracking closed shipments, and checking reimbursement values, lost inventory can quietly turn into lost profit.
By filling out the form below, our team can take a closer look at your Amazon account and help identify where operational issues may be costing you money.
We can review:
FBA shipment discrepancies
Lost or damaged inventory
Reimbursement report gaps
Inventory adjustment issues
Manufacturing cost records
Operational processes that may be creating financial leakage
No pressure. Just a practical conversation about where your account may be leaving money behind and what can be done to recover it.
Fill out the form below and let’s make sure your FBA inventory is working for your business, not quietly draining it.