Starting November 1, 2024, Amazon will automatically reimburse sellers for Fulfillment by Amazon (FBA) items that are lost in their fulfillment centers, as soon as the loss is reported.

• Claims for items lost or damaged in fulfillment centers must be submitted within 60 days of the report.
• FBA customer returns claims can be submitted between 60-120 days after the customer refund or replacement date.
• Removal claims for items lost in transit can be submitted 15-75 days from the shipment-creation date.
• All other removal claims must be filed within 60 days of the shipment being delivered back to the seller.

The new policy goes into effect on October 23, 2024, and the FBA inventory reimbursement policy will be updated accordingly.

This change aims to save sellers time and money by reducing the need for manual claims. Most reimbursement claims related to warehouse losses, damages, and customer returns will now be proactive. However, if automatic reimbursement is not received, sellers must file a manual claim. All removal claims will still require manual submission.

Specific changes to Amazon's FBA compensation policy

Here's the official statement from Amazon:

Please note that this policy change only addresses the loss of items that have been put into storage and does not make a statement about goods in transit.

Amazon's statement that they will compensate "virtually all" cases implies that there will be exceptions where automatic compensation will not be provided. While the specifics may not be entirely clear, here are some possible scenarios that might not be automatically compensated:

• Unverified Claims
• Policy Violations
• High-Value Items
• Repeated Claims

Why Is Amazon Automating Reimbursements?

Reduced Administrative Burden: With Amazon automatically compensating for most cases of lost or damaged items, sellers will spend less time manually filing claims, allowing them to focus more on their core business activities.

Need for Vigilance: Sellers will need to be more vigilant in monitoring their inventory and claims to ensure that any cases not automatically compensated are identified and manually submitted within the new, stricter timeframes.

Process Adjustments: The new deadlines for submitting claims will require sellers to adjust their internal processes to ensure compliance and avoid missing out on reimbursements.

Potential for Missed Compensation: Despite the automatic compensation, there is still a risk that some cases might not be covered automatically. Sellers will need to stay proactive in identifying and submitting these cases to avoid financial losses.

Increased Dependence on Amazon: The reliance on Amazon’s system for automatic compensation means sellers will be more dependent on Amazon’s accuracy and efficiency in handling these cases.

Keep in mind that automatic refunds don't start until November 1 and are not retroactive, so if you don't act now, your chances of getting your money back will be gone forever.

The years 2023 and 2024 saw a significant increase in new sellers on Amazon, leading the platform to implement policy changes aimed at regulating seller behavior and encouraging merchants to opt for additional services or incur extra fees.

While these changes reflect Amazon's commitment to maintaining the platform's high standards, they also place a number of stressful burdens on sellers.