Monthly Product Demo Watch Now

Sifted logo

4 Common FBA Errors and How to Get Reimbursed by Amazon

Apr 28, 2021

4 min read

Being an Amazon FBA seller can be very profitable — and very stressful at times. Staying on top of all of Amazon’s seller policies, marketing your products and managing your inventory can all get overwhelming fast.

Of course, you’re not alone. There are 1.9 million active sellers on Amazon, and according to a recent survey, 92% of sellers participate in FBA. With numbers like these, even one of the world’s largest retailers is bound to make mistakes.

But did you know those mistakes are likely to cost you the equivalent of 1-3% of your sales? It’s time to put a stop to that.

[Not an FBA seller? Check out the latest changes to Seller-Fulfilled Prime!]

Common FBA errors

Because Amazon has more than 100 warehouses, each at 1 million square feet or more, it’s inevitable that your inventory is going to be mishandled from time to time. It’s important to know what can go wrong so you can fix it, protect your profits and keep customers happy.

Your inbound shipment is lost in the warehouse.

In a vast, busy Amazon warehouse, your inventory can be misplaced or miscounted, which amounts to a big loss for you as the seller. For instance, if you sent 5,000 units, but Amazon only counts 4,800 of them, you lose not only the items themselves but also the profit you would have made.

Your item is miscategorized.

Amazon has dozens of categories and almost too many subcategories to count. If your items end up in the wrong one, it can cost you.

First, the wrong category might have higher fees associated with it than the one you intended. Second, it might keep you from appearing in a customer’s search for an item. Let’s say you sell baby headsets meant to protect their hearing at loud events. But if Amazon mistakenly puts your item in the Winter Wear subcategory, you won’t be found by shoppers as often, hurting your sales.

Your item is damaged before it ships out to the customer.

Damage to your items in an Amazon warehouse before they reach your customer can be another costly issue. If they receive a damaged item, your customer will almost certainly be unhappy and send it back as a return, potentially leaving you a poor review and hurting future sales in the process. You also lose the value of the item itself and are able to fulfill one fewer customer’s order with that inventory.

Amazon fumbles the return process.

Speaking of returns, Amazon sometimes issues a refund for a customer’s purchase when it shouldn’t — maybe the return shipment arrived after the return window closed, the item was returned in poor condition, or the customer didn’t send back the correct item. Amazon also sometimes receives the item properly but doesn’t credit it back to your inventory.

What you can do about FBA errors

As frustrating as these errors can be, many sellers don’t catch them, hurting their bottom line in the process. Amazon owes you money for all of them, but it’s your responsibility to find them and go through the FBA process to be reimbursed.

This process can be time-consuming, especially if you’re experiencing a large volume of FBA errors each month. It often means sitting down to scan through every shipping invoice to find errors and incorrect surcharges, then submit them to Amazon and track your requests’ progress to make sure your money ends up back in your account.

Delegating manual tasks like these to technology saves more than just time — it saves your sanity.

Sifted’s Amazon Audit is software that takes the frustrating research and follow-up off your plate so you can focus on building your business. It finds any FBA errors every month and ensures you receive the credits you deserve without having to do a thing. It’s all managed for you, following Amazon’s terms of service so you get the maximum reimbursement. (One seller even told us he forgets he’s enrolled — until the email with his reimbursement total shows up.)

Stay on top of FBA errors and keep more of your profit 

No matter how you choose to manage FBA inventory reimbursements, make getting your money back one of your 2021 priorities. The massive boost in online sales Amazon experienced in 2020 means they could be more likely to make mistakes with your inventory. Stay ahead of your competition by making sure you keep every dollar that belongs to you.

See Amazon Audit in action — It’s easy and free to sign up!

Topics: Amazon
Topics

Check out related resources at Sifted.

Monumental Rate Hikes: 2023 UPS & FedEx General Rate Increase (GRI) Analysis

Monumental Rate Hikes: 2023 UPS & FedEx General Rate Increase (GRI) Analysis

It’s here. UPS & FedEx have announced an average General Rate Increase of 6.9%. Actual impact to most ...
Read More
1/23/23 Monday Parcel News Update

1/23/23 Monday Parcel News Update

1. Amazon Sellers Can Bid for Additional Storage With New Capacity Management System Amazon is making moves to ...
Read More
FedEx Ground vs. UPS Ground vs. USPS: Explained

FedEx Ground vs. UPS Ground vs. USPS: Explained

FedEx Ground® FedEx Ground® is a day-certain service offered by FedEx that includes any parcels being shipped by ...
Read More
Every Parcel Resource You Need: The Ultimate Shipping Guide

Every Parcel Resource You Need: The Ultimate Shipping Guide

How to Lower Shipping Costs Rising shipping costs are the biggest challenge for more than half of eCommerce ...
Read More
Non-Conveyable Shipments: What it Means and How to Avoid it

Non-Conveyable Shipments: What it Means and How to Avoid it

What is considered a non-conveyable shipment? Non-conveyable shipments are items that don’t meet the dimension, ...
Read More
UPS Supply Chain Solutions: Examples and Alternatives

UPS Supply Chain Solutions: Examples and Alternatives

What are UPS Supply Chain Solutions? UPS Supply Chain Solutions™ (UPS-SCS) is part of United Parcel Service of ...
Read More
Amazon Trends for 2023: What’s Next for FBA Sellers

Amazon Trends for 2023: What’s Next for FBA Sellers

These last few years for Amazon sellers have been…interesting, to say the least. But through this mountain of ...
Read More
What Are the Top Trends in Supply Chain Logistics for 2023?

What Are the Top Trends in Supply Chain Logistics for 2023?

3, 2, 1... blast off! Into 2023 we go! Let's take a peek into what the future holds. Heading into 2023, there’s ...
Read More
Amazon Holiday Shipping Deadlines & Cut-Off Dates for 2022

Amazon Holiday Shipping Deadlines & Cut-Off Dates for 2022

Amazon sellers, are you ready? Because the 2022 holiday shipping season is here. And in case you weren’t, we’ve ...
Read More
2022 Holiday Shipping Deadlines

2022 Holiday Shipping Deadlines

Ready or not, carriers have announced their holiday shipping deadlines for 2022! You don’t want to be the Grinch ...
Read More
Freight Transportation: The Ins, the Outs, and How it Affects Logistics

Freight Transportation: The Ins, the Outs, and How it Affects Logistics

What Is Freight Transportation? Freight transportation is the movement of goods, merchandise, and cargo using ...
Read More
What is a UPS Residential Surcharge?

What is a UPS Residential Surcharge?

As a shipper, you can request delivery to any address. However, when your packages are shipped to a residential ...
Read More
Shipping Contracts: Key Responsibilities You Can’t Miss

Shipping Contracts: Key Responsibilities You Can’t Miss

What Is a Shipping Contract? Whether you are a high-volume shipper or run a small business, you must understand ...
Read More

How Sifted Works

Connect to
your account

Sync
your data

Power your
dashboards

Get Your Logistics
Intelligence Demo

Strategic ways to prevent loss down the line

Services you could be utilizing right now for savings

Ways to cut material costs without cutting quality

Are you an FBM (fulfillment by merchant) Amazon seller?

Check out our Marketplace Intelligence solutions to protect your bottom line.

Shipping Insights & Alerts
Get updates and track the things impacting your business most

Decision Support
See how supply chain adjustments pay off before you pay out

Carrier Management
Streamline how you manage your carrier operations and contracts

Business Automation
Let software do what it does better than people can

Seller Insights
Measure and monitor with confidence.

Sales Visualization
Shed new light on your sales data.

Fee Analyzer
Understand the impact of ever-changing FBA fees.

FBA Audit & Recovery
Secure money you’re owed from Amazon.

Blog
Discover news, tips, and industry best practices

DIM Weight Calculator
See how DIM is impacting you

Customer Stories
Learn how other brands use
Logistics Intelligence

Carbon Calculator
Calculate your CO2 Emissions

Guides
Download free reports and expert how-tos

Demo
Get a personalized tour of our software

Logistics Intelligence
For parcel shippers

Marketplace Intelligence
For Amazon FBA sellers

Let's get you to the right place!

SIFTED DASHBOARDS
For parcel shippers

AMAZON Marketplace Intelligence

Not sure if you have an account? Email [email protected].