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Top 10 Amazon FBA Inventory Losses | Infographic

Where FBA losses occur and how sellers can get reimbursed

What is a FBA inventory loss

FBA inventory losses refer to discrepancies in the value or quantity of inventory that a seller sends to Amazon’s Fulfillment Centers versus the value that Amazon shows.  These discrepancies can generally occur for a variety of reasons such as lost, damaged, destroyed product, and incorrectly credited inventory value.  If Amazon catches the discrepancy, they may automatically reimburse the seller.  The others must be claimed by the seller before the reimbursement period expires.  Amazon has policies for FBA claims and reimbursement.  Many sellers aren’t aware they’re incurring losses, typically 1% to 3% of total sales.  Others struggle with a clear understanding of where those losses occur and how to recoup all the eligible money.

Top 10 areas where FBA losses occur [Infographic]

Here’s a definitive list of the 10 main areas where FBA losses occur within the Amazon FBA fulfillment network.  The infographic shows exactly where losses occur as inventory travels through Amazon’s fulfillment network.  Under each of these 10 headers, there are nuances of where or how the loss occurred.  But essentially all FBA losses reside under one of these 10 areas.

10 locations where losses occur as product travels through Amazon’s fulfillment network

Top 10 FBA Inventory Losses

How sellers can claim FBA reimbursements from Amazon

Amazon has a FBA reimbursement policy which sellers can use to file claims manually in Seller Central.  But the process can be complicated, time-consuming, and many sellers end up frustrated when they can’t get refunded all the money they’re owed.

The alternative to do-it-yourself is to use a 3rd party FBA reimbursement service like Channel Bloom. With this option, sellers can save time and typically get more money back.  It’s wise to use some selection criteria when evaluating service providers.  These often concern 3rd party vendor compliance with Amazon’s Terms of Service (ToS), trust with store access, use of overseas / outsourced labor to cut costs, and the burden of having to learn a new tool or do extra work if it’s not full-service.  Channel Bloom satisfies all those concerns and more.

 

Many sellers aren’t aware they’re incurring losses, typically 1% to 3% of total sales.

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