Introduction:
As an online seller on Amazon, you might want to take advantage of the sales days and festive sales to boost your revenue and reach more customers. However, in your wildest dreams, you would not wish to face lost FBA inventory as a hurdle. Lost FBA inventory is when Amazon fails to account for your products that you have shipped to their fulfillment centers. This can cause you a lot of problems, such as losing sales, wasting time and money, and damaging your reputation. In this article, we will discuss the following topics:
- What are the problems caused by lost FBA inventory?
- What are the challenges faced by sellers while trying to get FBA reimbursement on lost inventory?
- How to deal with the FBA reimbursement process smartly?
- What are the best practices to follow while filing a refund claim on lost FBA inventory?
- How to avoid lost inventory in the first place?
What are the problems caused by lost FBA inventory?
Lost FBA inventory can have a negative impact on your business in many ways. Some of the common problems are:
- Loss of sales: If your products are lost or misplaced by Amazon, you will not be able to sell them to your customers. This will be a loss of revenue and profit for the seller. Moreover, you might miss out on the peak demand periods, such as holidays or special events, when your products could have sold more.
- Loss of inventory: If your products are lost or damaged by Amazon, you will have to bear the cost of replacing them or writing them off. This will increase your expenses and reduce your margins. You might also face inventory shortages or stockouts, which can affect your customer satisfaction and loyalty.
- Loss of reputation: If your products are lost or delayed by Amazon, you might receive negative feedback or reviews from your customers. This can harm your reputation and brand image. You might also lose your seller performance metrics, such as order defect rate or late shipment rate, which can affect your ranking and visibility on Amazon.
- Loss of trust: If your products are lost or mishandled by Amazon, you might feel frustrated and disappointed with their service. You might lose trust in their ability to fulfill your orders efficiently and accurately. You might also face difficulties in communicating with them or getting a fair resolution.
What are the challenges faced by sellers while trying to get FBA reimbursement on lost inventory?
If you suspect that your products are lost or damaged by Amazon, you have the right to request a reimbursement from them. However, this process can be challenging and time-consuming for many sellers. Some of the common challenges are:
- Multiple follow-ups: You might have to contact Amazon multiple times to get a response or an update on your reimbursement claim. You might have to wait for long periods or face delays in getting a resolution.
- Vague deadlines: You might not get a clear timeline or deadline for when you can expect to receive your reimbursement. You might also face uncertainties or inconsistencies in how Amazon handles different cases or situations.
- Stuck with inventory status report: You might have to rely on the inventory status report provided by Amazon to track your products and identify any discrepancies. However, this report might not be accurate or updated regularly. You might also face difficulties in interpreting or verifying the data in the report.
- Payment received is after deductions: You might not receive the full amount of reimbursement that you deserve or expect. You might have to accept deductions or adjustments made by Amazon based on their policies or calculations. You might also face issues in reconciling or disputing the amount received.
How to deal with the FBA reimbursement process smartly?
To overcome the challenges and problems caused by lost FBA inventory, you need to deal with the FBA reimbursement process smartly and proactively. Here are some tips and tricks that can help you:
- Call immediately: As soon as you notice any discrepancy or issue with your inventory, you should contact Amazon’s seller support team immediately. You should provide them with all the relevant details and evidence, such as tracking numbers, invoices, receipts, photos, etc. You should also ask them for a case number and a confirmation email for future reference.
- Deal smartly: You should be polite but firm when dealing with Amazon’s representatives. You should explain your situation clearly and concisely, and ask for a reasonable and fair compensation. You should also follow up regularly and escalate your case if needed.
- Keep information on inventory memorized: You should keep track of your inventory levels and movements at all times. You should know how many units you have shipped, received, sold, returned, or refunded by Amazon. You should also keep records of all your transactions and communications with Amazon.
- Contact supplier for refilling: You should contact your supplier as soon as possible to replenish your inventory or order more products. You should also negotiate for better prices or discounts to reduce your costs and increase your profits.
What are the best practices to follow while filing a refund claim on lost FBA inventory?
To increase your chances of getting a successful and timely reimbursement from Amazon, you should follow some best practices while filing a refund claim on lost FBA inventory. Here are some of them:
- Mark shipment status as closed: You should mark your shipment status as closed once you have shipped your products to Amazon. This will prevent Amazon from receiving any more units from your shipment and avoid any confusion or duplication.
- Upload complete documents: You should upload all the required documents and information to support your claim, such as packing slips, shipping labels, invoices, receipts, photos, etc. You should also make sure that the documents are clear, legible, and complete.
- Blur or cover the prices: You should blur or cover the prices of your products on the documents that you upload. This will prevent Amazon from using the prices to calculate your reimbursement amount and avoid any underpayment or overpayment.
Double check the exact numbers: You should double check the exact numbers of units that you have shipped, received, sold, returned, or refunded by Amazon. You should also compare them with the numbers in the inventory status report and identify any discrepancies or errors
How to avoid lost inventory in the first place?
One of the best ways to avoid lost inventory in the first place is to prevent stranded inventory. Stranded inventory is when your products are in Amazon’s fulfillment centers but are not available for sale. This can happen for various reasons, such as incomplete listing information, inaccurate shipment details, pricing errors, or listing deletions. Stranded inventory can lead to lost sales, wasted storage fees, and lower inventory performance.
To prevent stranded inventory, you should follow these tips:
- Conduct thorough research prior to listing products and submitting inventory to FBA. Verify that there is sufficient demand and profit margin for your products, and that they comply with Amazon’s standards and requirements.
- Complete your listing information before submitting your shipments to FBA. Add all the information that is required, including the title, description, keywords, categories, and photos. This will improve your products’ visibility and search ability on Amazon.
- Ensure complete accuracy when generating FBA shipments. For every product, use the appropriate SKU, quantity, condition, and barcode. Give your products and boxes secure, legible labels. Pay close attention to Amazon’s packing and shipping instructions.
- Don’t set your pricing lower or higher than your minimum or maximum. If you do, Amazon may remove your offers or repress your listings. To maintain your prices competitive and within the permitted range, use a reprising instrument or approach.
- Refrain from immediately removing your listings or offers. You must first create a removal order and wait for Amazon’s confirmation before attempting to remove a goods from FBA. If you remove your offers or listings before then, they could get stuck.
If you follow these best practices, you can reduce the risk of having stranded inventory and avoid losing inventory in the first place.
Conclusion
Lost FBA inventory is a common and frustrating problem that many online sellers face. It can cause you to lose sales, inventory, reputation, and trust. However, you can deal with it smartly and proactively by following the tips and tricks mentioned in this article. You can also use some tools or services that can help you automate or simplify the FBA reimbursement process and save you time and money. We hope that this article has helped you understand the effects and solutions of lost FBA inventory and how to tackle it smartly.
