Critical policy changes that sellers need to know and actions to take now.
Amazon announced big changes to the FBA reimbursement policy, including a whopping 89% reduction (from 18 months to 60 days) in the timeframe that seller’s can file claims for reimbursement. This could have a significant financial impact to FBA sellers who don’t act before the October 23, 2024 effective date. By not taking action, sellers may forego up to 16 months of eligible refunds. Here’s a breakdown of key policy changes and actions that sellers can take to avoid missing out on up to 16 months of unclaimed refunds.
Amazon’s Policy Announcement
The timeframe that FBA sellers can file reimbursement claims to Amazon will shrink dramatically on October 23, 2024. Here’s a snippet from Amazon’s policy announcement posted on seller central forums which summarizes the reductions in claim eligibility windows.
Claim Windows
The eligibility window varies for different types of claims. And not all types were affected by this announcement. This table shows a before-and-after comparison for the specific types of claims affected by the policy update.
| Type of Claim | Claim Window Before Change | Claim Window After Change | Reduction |
|---|---|---|---|
| Lost or damaged items in the Fulfillment Center | 18 months | 60 days | -16 months |
| Customer (‘Shopper’) Returns | 60 days to 18 months | 60 to 120 days | -14 months |
| Inventory Removal (lost in transit) | 14 days to 18 months | 15 to 75 days | -15 months |
| Inventory Removal (all others) | Varies. Up to 18 months. | 60 days | Varies. Up to -16 months |
Proactive Reimbursements
The announcement suggested an increase in proactive reimbursement by Amazon, which takes effect on November 1, 2024. It pertains to “claims related to warehouse lost and damaged and customer returns cases”. This is good news for sellers, if it happens. But sellers would be wise to not rely on Amazon to catch and refund 100% of eligible losses. On-going inventory audits with greater frequency may be necessary to fully recoup money.
Actions That Sellers Can Take
Since the changes go into effect October 23, 2024, there is time to take action. But don’t wait. Every day that passes is potentially a day of claims that expire in arrears. Act now to maximize your refund. To get refunds, sellers will need to audit their FBA transactions, find eligible discrepancies, and file claims per the FBA inventory reimbursement policy. Some sellers handle claims in-house while others use a 3rd party expert service like Channel Bloom.
With the October deadline looming, time is of the essence. We can help.
Countdown: Act now, before 16 months of your refunds expire.