Selling through Amazon FBA gives brands access to world-class logistics infrastructure, but it also means handing over physical control of your inventory. When products go missing or arrive damaged inside Amazon’s fulfilment network, knowing exactly how the reimbursement process works can save you significant money. This guide walks through every stage of the process, from Amazon’s core policies to filing a claim and deciding whether to handle it yourself.
What is Amazon FBA’s policy on damaged or lost inventory?
Amazon FBA’s policy states that when Amazon is responsible for losing or damaging your inventory while it is in their fulfilment network, they will reimburse you for the fair market value of the affected units. This liability covers products from the moment Amazon accepts your shipment until the moment an order is fulfilled or the item is returned to you.
The policy draws a clear line between Amazon’s responsibility and the seller’s. If a product is damaged during transit from your warehouse to Amazon’s fulfilment centre, that typically falls outside Amazon’s liability unless Amazon’s carrier caused the damage. Once Amazon scans and accepts your inventory, however, their responsibility begins. This includes damage caused by Amazon staff during picking, packing, or storage, as well as units that simply cannot be located within the network.
It is worth noting that reimbursement is not automatic. Amazon will pay out in the form of a credit to your seller account or, in some cases, by replacing the unit with an equivalent one from another seller’s stock. You must actively monitor your inventory and raise claims when discrepancies arise.
How does Amazon determine if a product is lost or damaged?
Amazon determines whether a product is lost or damaged by cross-referencing its internal inventory tracking systems. A unit is considered lost when it is recorded as received but cannot be located in any fulfilment centre. A unit is considered damaged when Amazon’s systems log it as unsellable due to physical harm caused within their network.
Amazon uses barcode scanning and real-time inventory management to track every unit across its network. When a discrepancy appears between what was sent and what is available for sale, the system flags it. For damaged items, Amazon categorises them as either customer-damaged or fulfilment-centre-damaged. Only fulfilment-centre-damaged units qualify for reimbursement, since customer-damaged returns are handled through a separate returns policy.
Amazon typically gives itself up to 30 days to locate a missing unit before officially classifying it as lost. During this window, the unit may show up in a different fulfilment centre or be found during a stock audit. If it remains unaccounted for after that period, it becomes eligible for a reimbursement claim.
What reimbursements can sellers claim from Amazon FBA?
Sellers can claim reimbursements for several categories of loss within the Amazon FBA system. The most common types include lost inventory in the fulfilment network, items damaged by Amazon during storage or fulfilment, units damaged during inbound shipment by Amazon’s carrier, and customer returns that are never received back into your inventory.
Here is a breakdown of the main reimbursable scenarios:
- Lost FBA inventory: Units that were received by Amazon but have since disappeared from the system
- Fulfilment centre damage: Items physically damaged by Amazon staff or equipment
- Inbound shipment damage: Products damaged in transit when Amazon’s partnered carrier was responsible
- Missing customer returns: Returns that a customer claims to have sent back but that never appear in your inventory
- Shipment discrepancies: Units missing from the quantity Amazon acknowledged during inbound receiving
The reimbursement value Amazon offers is based on their own estimate of the product’s fair market value, which is calculated using your sales history, similar product listings, and average selling price. This figure is not always equal to your retail price, so it is worth reviewing whether the offered amount is reasonable before accepting it.
How do you file a claim for lost or damaged FBA inventory?
To file a claim for lost or damaged FBA inventory, you need to submit a case through Seller Central under the “Help” section, providing specific shipment or inventory data to support your request. The process requires you to identify the discrepancy first, then gather the relevant documentation before raising the case.
Follow these steps to file a claim effectively:
- Run an inventory reconciliation report in Seller Central to identify missing or damaged units
- Check the Reimbursements report to see if Amazon has already issued automatic compensation for the loss
- Gather supporting documentation, including your shipment ID, box content information, and proof of inventory sent
- Open a case in Seller Central under “FBA Issue” and select the relevant category (lost inventory, damaged inventory, etc.)
- Provide the specific unit and shipment details Amazon requests, including ASINs, quantities, and dates
- Follow up if Amazon does not respond within the stated timeframe, as cases can stall without a prompt
There are time limits to be aware of. For most claim types, you have up to 18 months from the date of the loss to file. Missing this window means forfeiting your right to reimbursement, which is why regular inventory audits are essential for any active FBA seller.
Why do some Amazon FBA reimbursement claims get rejected?
Amazon rejects reimbursement claims primarily because the seller cannot provide sufficient evidence, the claim falls outside the eligible time window, or Amazon determines that the loss was not caused by their fulfilment network. Understanding the most common rejection reasons helps you build stronger cases from the start.
The most frequent reasons for rejection include:
- Insufficient documentation: Claims without shipment IDs, box content files, or clear unit counts are routinely denied
- Expired claim window: Claims submitted beyond the 18-month limit are automatically ineligible
- Damage attributed to the seller: If Amazon concludes the product was already damaged when it arrived, they will not accept liability
- Duplicate claims: Submitting a claim for a unit Amazon has already reimbursed results in immediate rejection
- Incorrect categorisation: Filing under the wrong claim type can cause delays or outright refusal
If a claim is rejected, you are not necessarily out of options. You can appeal the decision by providing additional evidence or by escalating through Seller Support. Persistence and thorough record-keeping are the two most effective tools for overturning an initial rejection.
Should you manage FBA claims yourself or use a third-party service?
Managing FBA claims yourself makes sense if you have a small catalogue, low order volume, and the time to conduct regular inventory audits. For sellers with large or fast-moving catalogues, a third-party reimbursement service can recover significantly more money by catching discrepancies that manual checks miss, though they typically take a percentage of any recovered amount as their fee.
The core trade-off comes down to time versus cost. Running claims manually requires you to regularly pull inventory and reimbursement reports, cross-reference data, and manage open cases in Seller Central. This is manageable at a small scale but becomes increasingly difficult as your product range and order volume grow.
Third-party services use automated tools to scan your account continuously, flag discrepancies, and file claims on your behalf. They are particularly effective at catching smaller losses that sellers tend to overlook, such as minor shipment discrepancies or missing return units. The standard commission these services charge typically ranges between 15% and 25% of recovered funds, so it is worth calculating whether the volume of potential claims justifies the cost.
A middle-ground approach that works well for many sellers is to handle straightforward claims internally while using a specialist service for complex or high-value disputes where the documentation requirements are more demanding.
How Distrilink helps you scale on Amazon without the operational burden
Managing FBA reimbursements is just one layer of the operational complexity that comes with selling on Amazon. At Distrilink, we help brands grow quickly and in a controlled way on online marketplaces. Rather than building an entire marketplace team, IT structure, or logistics operation from scratch, brands can activate and scale immediately through us. Here is what we take off your plate:
- Full marketplace activation and optimisation across all major European platforms
- End-to-end logistics and fulfilment through our in-house warehouse, giving you flexibility in product types and delivery timelines
- Customer service management so your buyers are supported without adding to your internal workload
- A data-driven, standardised approach supported by our own platform, giving you clear insight into your performance at all times
- Representation across more than 25 brands and connections to all major European marketplaces
Brands that work with us expand their e-commerce presence without adding complexity. We handle the full operational execution, from activation and optimisation to logistics and customer service, so you can focus on your product and your brand. Ready to scale smarter? Get in touch with Distrilink and find out how we can activate and grow your marketplace presence.
Frequently Asked Questions
How often should I audit my FBA inventory to catch reimbursable losses?
Most active FBA sellers benefit from running a full inventory reconciliation at least once a month, with more frequent checks (weekly) during peak periods like Q4 or major sales events when order volumes spike and discrepancies are more likely to slip through. Set a recurring calendar reminder to pull your Inventory Reconciliation Report and cross-reference it against your Reimbursements Report in Seller Central. The goal is to catch losses well within the 18-month claim window, not scramble to file claims retroactively.
What documentation should I always keep on hand to support a reimbursement claim?
The most critical documents are your shipment IDs, box content files (including SKU-level quantities per carton), carrier proof of delivery, and your inbound shipping plan confirmations. Screenshots or exports of your inventory levels at the time of the discrepancy can also strengthen a case significantly. Keeping these records organised by shipment date means you can respond quickly if Amazon requests additional evidence, which is often the difference between an approved and a rejected claim.
Can Amazon reimburse me with a replacement unit instead of a cash credit, and can I refuse it?
Yes, Amazon can choose to reimburse you by replacing the lost or damaged unit with an equivalent one sourced from another seller's stock rather than issuing a cash credit to your account. If the replacement unit does not match your product's condition, packaging, or value accurately, you can contact Seller Support to request a cash reimbursement instead. It is worth reviewing any replacement carefully before accepting it, particularly for branded, bundled, or high-value products where a generic substitute would not be appropriate.
What should I do if Amazon's reimbursement offer seems lower than my product's actual value?
Amazon calculates fair market value using your sales history, comparable listings, and average selling price, which does not always reflect your actual cost of goods or retail price. If the offered amount seems too low, you can dispute it by submitting evidence of your product's value, such as supplier invoices, recent sales data, or comparable marketplace pricing. Open a follow-up case in Seller Central referencing the original reimbursement and provide your supporting documentation — Amazon will not automatically revise an offer without a formal challenge.
Are there any types of inventory losses that Amazon FBA will never reimburse?
Yes, there are several loss scenarios that fall outside Amazon's reimbursement policy. These include products damaged before they entered Amazon's network (i.e., pre-existing damage), items lost or damaged during transit from your warehouse to Amazon when you used your own non-partnered carrier, inventory disposed of at your request, and losses resulting from seller error such as incorrect labelling or commingled inventory issues. Understanding these exclusions upfront helps you avoid wasting time filing claims that are ineligible from the outset.
How do I know if a third-party reimbursement service is worth the commission they charge?
A straightforward way to evaluate this is to run a manual audit of your last 6–12 months of inventory data and estimate the total value of unresolved discrepancies you have missed. If that figure significantly exceeds what a service would cost (typically 15–25% of recovered funds), the service likely pays for itself. Look for providers that offer a free initial audit or a no-recovery, no-fee model, and always verify that they operate within Amazon's Terms of Service to avoid account risk.
Can I still file a reimbursement claim if I no longer sell that particular product on Amazon?
Yes, you can still file a reimbursement claim for a product you no longer actively sell, provided the loss occurred within the 18-month eligibility window and you still have access to the relevant shipment and inventory data in your Seller Central account. The claim process is the same regardless of whether the ASIN is currently active. This is particularly relevant for seasonal sellers or brands that regularly rotate their catalogue, as older losses can still represent recoverable value if caught in time.
