Imagine carefully preparing your inventory, shipping it to Amazon's FBA warehouses with high expectations, only to discover discrepancies in stock counts or missing items entirely. This scenario represents both a financial and operational setback for sellers. However, when facing lost FBA shipments, sellers aren't powerless. This guide examines Amazon's FBA lost shipment claim process, detailing eligibility requirements, documentation needs, and strategies to maximize claim success.
Four Scenarios Eligible for Lost Shipment Claims
Sellers should regularly review Amazon's inventory reports (recommended monthly) and watch for these four claim-eligible situations within specified timeframes:
- Receiving Discrepancy Claims: Use the "Reconcile" tool in Seller Central to compare shipped versus received quantities. For significant shortages, file claims within 9 months of shipment. Maintain complete documentation including packing lists and shipping proofs.
- Return Transit Loss/Damage Claims: When customer returns go missing in transit to your return address, submit claims within 14 days after the last removal confirmation. For damaged returns, file immediately upon receipt with photographic evidence and shipping details.
- Missing Customer Returns Claims: If returns haven't arrived within 45 days of initiation, sellers may file within 18 months. Provide return authorization records and tracking information.
- Warehouse/Transit Loss Claims: For inventory lost or damaged during Amazon's storage or fulfillment that remains unresolved after 30 days, claims may be filed within 18 months. Prepare product details and purchase invoices to establish value.
Amazon's Compensation Calculation Methodology
Amazon determines reimbursement amounts by analyzing multiple pricing factors to establish fair market value:
- Seller's Historical Pricing: Median selling price for the item over the past 18 months.
- Market Average Pricing: Median price across all sellers for the same item during the same period.
- Current List Price: The seller's current listed price, averaged if multiple listings exist.
- Competitor Pricing: Current market prices from other sellers.
When insufficient pricing data exists, Amazon may reference comparable products. Sellers may be asked to provide supplemental documentation like purchase invoices or sales records to verify product value.
Claim Considerations: Avoiding Policy Violations
Amazon prohibits actions that might compromise its ability to serve all sellers equitably. These practices may result in claim denials or account repercussions:
- Unsubstantiated Claims: Conduct thorough investigations before filing to confirm actual losses. Avoid speculative submissions.
- High-Volume Claim Submissions: Excessive claims within short periods may trigger abuse investigations, delaying resolutions.
Repeated violations may lead to account monitoring, extended review periods, or additional disciplinary measures. Sellers should maintain compliance with Amazon's policies during the claims process.
Proactive Inventory Management
Lost FBA shipments represent an operational risk that sellers can mitigate through regular inventory audits, policy awareness, thorough documentation, and adherence to Amazon's guidelines. Understanding the claims process enables sellers to protect their business interests effectively.