As an FBA seller, you know that selling on Amazon can be profitable, but you might not realize how much you could be increasing your profits with FBA refunds.
The odds are that Amazon owes you money, and you could be claiming this cashback to invest in your business. This is because whenever Amazon makes a mistake that affects your bottom line, you might be eligible for an FBA refund. Many sellers miss out on this opportunity because they don’t understand how FBA refunds work.
With the proven power of FBA refunds, you could be turning losses into profits. Feeling curious? Let’s explore five aspects of FBA refunds so you can start putting money back in your pocket.
Key Takeaways from this Post
You might be losing more money than you think
Research from GETIDA shows that Amazon sellers’ discrepancy rates usually range from 1% to 3%, translating to 1-3 products out of 100 hitting a stumbling block of some kind. You might be reassured by these small numbers, and Amazon is indeed exceptionally efficient most of the time. This level of success suggests that Amazon is an excellent platform on which to sell your products. You would not be wrong to feel this way, but there is another side to the story.
Take a moment to imagine an Amazon FBA seller with annual sales of $1 million, and consider this 1% to 3% discrepancy rate. When you realize that such a seller will be losing $10k to $30k each year, the rate of discrepancies is suddenly no longer so acceptable. Any seller would far prefer to have this kind of cash back, but unfortunately, Amazon will not automatically notice and reimburse all errors. Instead, it is on you as the seller to find all possible discrepancies and file claims for your FBA refunds.
Watch out for strict deadlines
Many sellers do not realize that FBA reimbursement claims can only be made during an 18-month window. Depending on the type of discrepancy, the time frame might be even shorter. Before the deadlines defined by Amazon, you must audit your transactions and open cases for any discrepancies. It is worth reviewing Amazon’s FBA reimbursement policy to learn more about the details of your eligibility for FBA refunds. Remember, if you miss the deadline to file for your FBA refunds, that money is never going to be returned to you.
FBA refunds turn losses into profits
If you fail to claim your FBA refunds, your business will experience a double loss. First, you’ll lose the amount of money you paid to source the product. Next, you’ll lose the profit you might have earned if the product had sold. For most Amazon sellers, a decent profit margin is built into the listed price of a product.
Thankfully, when you file for an FBA refund, Amazon reimburses the price you would have sold the product for, essentially ‘buying’ the item from you. This is great news for you since your double loss is transformed into a double win. With this kind of money on the line, FBA refunds have the potential to increase your profits more than you might expect.
What types of discrepancies qualify?
Now that you know how much money FBA refunds could be provide, you might be wondering when you have the right to make a claim. There is a range of scenarios in which Amazon could owe you an FBA refund, but we’ll take a look at the most common.
When a product is lost during shipment or upon arrival at the FBA fulfillment center, you are likely entitled to a refund. Once your inventory is stored in Amazon’s warehouse, items can still get lost, damaged, or even thrown away. Many sellers do not realize that Amazon has the right to destroy or discard your inventory without notice. In these situations, you can make an FBA refund claim.
Fee overcharges are another frequent source of discrepancies. These occur when Amazon charges too much for picking and packing, or when shipping fees are miscalculated. Product measurement errors are usually the reason for shipping overcharges, and this makes it especially important to have your product’s accurate measurements on hand while making claims.
Keep in mind that sellers have only 90 days to make FBA refund claims regarding product measurement errors. You should schedule regular account audits in order to avoid needless losses on this type of discrepancy.
Discover how much money you are owed
If you have never conducted an audit of your seller account, do not feel intimidated by the process. In order to ensure you maximize your FBA reimbursements, consider enlisting the services of a professional auditing service such as GETIDA.
Signing up with GETIDA takes a few minutes and immediately provides you with a free dashboard where your potential FBA refund can be estimated. If you wish to pursue this refund, simply upgrade your account to access GETIDA’s recovery service. Thanks to state-of-the-art software and experienced case managers, your account will be in safe hands and your FBA refund can reach its full potential. Since GETIDA only charges a recovery fee when they successfully secure your return, you can rest assured that every dollar adds value to your business.
Going Forward With Your FBA Refunds
As you learn your way around FBA refunds, you can look forward to increasing your profits. Consider the range of potential discrepancies, and remember that you could be getting back more money than you think. Seeking the services of an FBA refund solution company such as GETIDA can help your business reach its full potential. There’s no reason to wait any longer before making FBA refunds work for you.