Amazon's FBA Auto-Reimbursements Pilot: Two Months In

Amazon first announced its plans to implement FBA reimbursement changes in July 2024. There were two key updates: they’ll shorten the claim filing window from 18 months to just 60 days, and they will introduce an automated reimbursement process.

At first glance, the shortened filing window seemed reasonable. After all, reimbursements will be automated. This should save sellers time and effort when tracking lost inventory in fulfillment centers.

But that’s only true if the process works flawlessly. Until that’s certain, sellers must closely monitor their Amazon reimbursement claims to ensure nothing is missed. And with less time to file claims, they’ll need to act quickly.

This blog provides new insights into how sellers can prepare for the policy changes scheduled to take effect on October 23, 2024. Now is the time to make sure all past claims are submitted—especially for lost or damaged items from April 2023 to August 2024—before the new 60-day window closes.

Amazon FBA Auto-Reimbursement Pilot: Key Findings from Two Months In

To ease the potential impact of these changes, Amazon introduced a pilot program for select FBA sellers. The pilot promised to proactively reimburse them for eligible lost inventory within their fulfillment centers.

After reviewing data from both the first and second months of the pilot, we’ve found persistent gaps in reimbursements. Our findings indicate that 33% of the total eligible value was not auto-reimbursed. Sellers relying solely on the automated system could risk losing substantial amounts of reimbursement.

Key Findings: 33% of Reimbursable Revenue at Risk

We analyzed lost inventory and reimbursement data for 152 sellers participating in the Amazon pilot program. Our analysis focused on both the first month and second month’s data, to provide a more comprehensive assessment of the system from the start of the pilot until now.

After allowing time for Amazon’s auto-reimbursement process to take effect by September 26, here are our key findings:

• Eligible Reimbursements: We identified 10,842 units as eligible for reimbursement, with a combined value of $260,442.86.
• Auto-Reimbursement Gaps: 1,289 units (12% of eligible units) valued at $85,165.67 (33% of eligible value) were not auto-reimbursed.
• Success Rate: Only 67% ($175,277.19) were successfully auto-reimbursed.

A Look Into Our Methodology

• Data Collection: We gathered data on lost inventory and Amazon reimbursements for 152 of our clients enrolled in the pilot program. Upon notification of their inclusion, we suspended all manual case-filing activities for these accounts.
• Observation Period: Building on the data we gathered from the pilot program's first month, we focused on lost inventory events that occurred between July 26th and September 5th. We allowed sufficient time (three weeks) for Amazon’s automated FBA reimbursement service to be completed by September 26th before finalizing our numbers.
• Data Analysis: We identified instances where items were eligible for Amazon FBA reimbursement but not automatically processed (Category A). We then compared this against the number of successful auto-reimbursements (Category B). The combined total of A and B represent all eligible lost inventory events.

Why Sellers Must Take Action Before the October 23 Deadline

Amazon's new reimbursement policy will come into effect on October 23, 2024, reducing the claim window from 18 months to just 60 days. If sellers don’t act before this deadline, they could lose the ability to recover any reimbursements for items lost or damaged between April 2023 and August 2024.

This policy change increases the risk of missing out on reimbursements, especially for sellers with a large volume of FBA business. Since Amazon’s new automated system won’t officially launch until November 1, sellers must submit any outstanding claims now. Failing to do so could leave significant sums of money on the table.

What Should Sellers Do?

Sellers should not depend solely on Amazon’s automated reimbursement tools. While the pilot program is a step in the right direction, the 33% gap in reimbursement value suggests the system isn’t yet reliable.

We recommend the following steps:

1. Submit All Outstanding Claims Immediately: File claims for lost or damaged inventory from April 2023 to August 2024 before October 23, 2024.
2. Monitor your inventory closely and actively seek FBA reimbursements: for any losses that Amazon’s automated system misses. Services like DimeTyd can help you in this regard. A dedicated recovery service is the only way to perform a comprehensive Amazon reimbursement audit to ensure that no amount will be overlooked.

Why a Dedicated Amazon Reimbursement Specialist is Essential

Relying solely on Amazon’s automated tools leaves room for missed claims. Partnering with a third-party service like DimeTyd Sellers ensures that all eligible losses are identified and submitted. This proactive approach is crucial, especially for small businesses with tight profit margins.

We will continue to monitor the progress of the pilot program and gather additional data beyond the three-week observation window. Our goal is to benchmark the system’s long-term reliability and help sellers understand whether automated tools will meet their reimbursement needs.

Conclusion

It is evident that Amazon’s automated FBA reimbursement algorithms remain inconsistent. Thus, sellers must remain vigilant and take proactive steps to protect their businesses. 

Enlist the help of a trusted Amazon reimbursement service before it’s too late to ensure fair compensation for lost inventory. After all, every missed reimbursement is potential profit left on the table.