Amazon have announced two policy updates for Amazon FBA sellers:
- starting Wednesday 23 October 2024, Amazon are updating their eligibility window policy for manual claims
- starting Friday 1 November 2024, they’re making a significant improvement to their Fulfilment by Amazon (FBA) service: they’ll now proactively reimburse you for items lost in their fulfilment centres
This means deadlines are now much shorter than before, so if you don’t act now, your business could risk losing thousands.
Find out more about how these improvements will work, and what you need to do before each deadline. Firstly, let’s look at the manual claims eligibility window policy.
Table of Contents
ToggleThe new manual claims eligibility windows
As they announced, Amazon’s new policy will go into effect on 23 October, which they say will give you enough time to adapt your current processes for making these claims.
What does this latest change mean for sellers?
You’ll need to adjust to keeping an even closer eye on your inventory and on your claims from now on, as most of the claims windows have been cut from a maximum of 18 months to a maximum of 50-75 days, depending on the type of claim you’re making.
This isn’t the first change to the claims deadlines. As noted by Amazon sellers and other observers, the time you have to make these claims has been cut from around 18 months to around 2 months. In the early 2010s there were no time restrictions.
What are the new eligibility window timelines for manual claims from 23 October?
| Type of claim | The pre-23 October 2024 submission window? | The post-23 October 2024 submission window |
|---|---|---|
| Fulfilment centre operations claims | Between 60 days and 18 months | Within 60 days after the item is reported lost or damaged. |
| FBA customer returns claims | Between 60 days and 18 months | Between 60-120 days after the customer refund or replacement date. You must wait 60 days to submit to give the customer time to return the item for processing. |
| FBA removal claims for items lost in transit | Between 14 days and 18 months | Between 15-75 days from the shipment creation date. You must wait 15 days to ensure the shipment can be delivered back to you. |
| All other removal claims | N/A | Must be filed within 60 days of the shipment being delivered back to you. |
Amazon FBA proactive reimbursement: what’s happening?
The improvement to the claims process:
- only applies to lost/damaged items
- is now automated
- shortens the refund time from 18 months to 2 months
How does this new reimbursement system work?
Almost all claims related to warehouse lost and damaged items, as well as customer returns, will now be automatically reimbursed.
As soon as an item is reported lost in Amazon’s fulfilment centres, you’ll receive a refund, which Amazon says you can easily track in the Reimbursements report on Seller Central.
What does this update to FBA reimbursement mean for sellers?
This newly streamlined process aims to save you time and money by reducing the need to manually research and file manual claims for lost/damaged items.
The pros and cons of the FBA reimbursement update
Pros:
- recouping your losses through reimbursement helps you maintain a healthy bottom line
- your inventory records should be easier to track
Cons:
- You’ll still need to audit and file lost/damaged item claims between now and 1 November, so you don’t have much time
Your key dates and takeaways about Amazon FBA reimbursements and manual claims eligibility
- Wednesday 23 October 2024: New manual claims eligibility window deadlines – sellers must submit manual claims within specific timelines, ensuring you stay vigilant about your inventory
- Friday 1 November, 2024: Amazon will start automatically reimbursing FBA sellers for items lost or damaged in their fulfilment centres
- Customer return cases: most of these will be proactively reimbursed, but you’ll need to file manual claims if automatic reimbursement isn’t received
- When to make manual claims: removal claims and other specific situations still require manual filing, and the windows are much shorter than before, so you’ll need to monitor your inventory closely
Don’t wait – act now
With the changes about to come into effect, and with those changes reducing the time you have available to make reimbursement claims, now’s the time to start tidying up your inventory and making any necessary claims.
When it comes to thriving as an e-commerce seller, adapting quickly to platform changes – and staying vigilant about your inventory – are important factors in your success.
Our partner Getida specialise in FBA auditing and reimbursement solutions. Find out how they can help.
FAQs about Amazon’s updated reimbursement policies
What about FBA customer returns – has that policy changed?
No. Amazon already proactively reimburse sellers for items damaged by the carrier during returns or for items that are vs what was shipped. Customers still have 30 days to return their items, so this policy hasn’t changed.
Does ‘lost in transit’ mean ‘lost en route to the fulfilment centre’?
No. Amazon says that this case, ‘lost in transit’ refers to items that are lost when Amazon ship the inventory from their fulfilment centres back to you when you’ve filed for the removal. This doesn’t mean items lost on the way to the fulfilment centre.
Will you still need to file manual claims for FBA reimbursement?
Yes, you will need to file a manual claim if the following are true:
- You didn’t receive an automatic reimbursement, and you believe your inventory has been lost or damaged
- You need to file a removal claim
- An item is lost or damaged during removal, transshipment, or disposed in the warehouse
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