FBA reimbursements: A guaranteed way to boost profits
For an Amazon seller, turning a loss into a profit is a tantalising option. You could start doing this for your Amazon business today if you harness the power of FBA refunds. The money you gain could strengthen your enterprise and keep you poised for success.
Whether you know it or not, Amazon may owe you money. Claiming this cash is as simple as filing for an FBA refund. However, if you fail to claim your money back in time, you’ll never see it again.
If you want to maximise the money that Amazon reimburses to you, keep reading. We will explore five questions that will help you get as much cash back as possible.
1. Which situations merit an FBA refund?
It is crucial that you understand when Amazon owes you an FBA refund. There are several types of errors that Amazon may make that entitle you to cashback. These errors are called discrepancies.
For example, if your inventory is lost during shipment to Amazon’s warehouse, or upon arrival, you can usually file for an FBA refund. Further, if your inventory is damaged, destroyed, or lost during its storage at Amazon’s fulfillment centre, an FBA refund may be owed to you.
It is also possible that Amazon has overcharged you for the shipping or packing of one of your products. This can be due to inaccurate records of the dimensions or weight of that particular product. Be sure to have the accurate measurements for your products on hand when you file your claim. Keep in mind that discrepancies related to product dimensions must be reported within 90 days. This makes it particularly important to monitor your account records diligently.
2. How much do discrepancies affect your business?
You might be asking yourself if the hassle of filing for FBA refunds is worth it for you and your business. On average, an Amazon seller’s discrepancy rate is 1% to 3%, translating to a problem with 1 to 3 products out of 100. This is an impressively low rate that speaks to the quality of Amazon’s logistics, however, even this gigantic platform makes errors that can hurt your business.
Although the discrepancy rate seems small, if your business generates $1 million annually, you will lose $10K to $30K every year in discrepancies alone. No one wants to leave this type of cash on the table, but without filing for your FBA refund, you’ll never see it again.
3. Do FBA refunds turn a loss into a profit?
If you choose to skip filing for your FBA refund, your business will experience a double loss. The cost of your inventory is the initial loss, while the second loss is the profit that selling the products could have earned you.
When an FBA refund is approved by Amazon, the company essentially “buys” the inventory in question, which for most sellers includes a profit margin. This transforms a loss into a profit, covering the sourcing costs as well as your profit margin.
4. What are the limits on FBA refunds?
You must make your FBA refund claims according to Amazon’s terms and conditions. It is also essential that you comply with Amazon’s 18-month window for claims to be made. If you fail to audit your account and identify all discrepancies within this timeframe, you will no longer be able to open cases for reimbursement.
This is not a situation you want to find yourself in as your money will never be returned to you after this point. Ensure that you schedule regular audits of your account so you do not miss out on any money.
5. How do you claim your FBA refund?
Perhaps you have never filed for an FBA refund before, or you have been depending on Amazon’s auto-reimbursements. If this is the case, you probably have unclaimed cash waiting for you.
You might wish to try filing for your own FBA reimbursement, but keep in mind that conducting a comprehensive audit of your account can be tedious and time-consuming. As a business owner, your time is a valuable resource that may be needed more urgently elsewhere.
Alternatively, you might prefer to hire a virtual assistant (VA) to assist you with your FBA refunds. In this case, you must be absolutely certain you can trust the individual and their level of experience. After all, you would be giving them access to your account details.
Finally, you could enlist a professional auditing service like Getida with experienced case managers and specialised software to help you maximise your FBA refund.
Getida only charges you a recovery fee for refunds they successfully obtain, so they only get paid when you get your money back. If no refunds are acquired, there is no cost for Getida’s services.
Signing up with Getida only takes a few minutes, and provides you with immediate access to a free dashboard where you can generate an estimate of your potential refund. If you decide to proceed with the recovery process, you can upgrade your account to get your money back.
Going forward and getting your FBA refund
Now that you understand the impact FBA refunds can have on your business, it’s time to start claiming yours. Remember, there are a variety of discrepancies that merit an FBA refund, and you can use this as an opportunity to transform losses into profits.
Over time, these FBA refunds could mean plenty of money back in your pocket. Professional services such as those offered by Getida can help you get as much of your cash back as possible. So, what are you waiting for? You might have more money waiting for you than you think.