This article will explain how to manually pull and use the inventory reconciliation report to find discrepancies in your inventory and ask for reimbursements. This is the manual process to find out discrepancies in your inventory, but several tools in the market do it automatically and even ask for a reimbursement on your behalf.
If you are using Amazon fulfillment services (FBA) to fulfill your products, the only way to manage your inventory by looking at the number of units shipped over a period of time vs. the number of units sold and available. When these numbers don’t match, we need to look for lost, returned, and damaged items.
I recommend downloading the Inventory Reconciliation report at least once a month and checking for any discrepancies to request a reimbursement.
2. From the left side menu, go to Inventory > Click on Inventory Reconciliation.
You can choose between “View Online” which is a single search, or “Download” to get the full report on the Inventory Reconciliation page. The single search gives you the information of any individual SKU in a date range. If you choose to download the report, it will provide you with the movements and ending quantities of every SKU in your inventory in a specific date range.
3. Click on Download and choose the date range you want to reconcile.
If this is your first time using this tool or reconciling your inventory you might want to request the broadest event date, which is 18 months.
4. After you download the report, you need to convert the columns in a table to filter the information faster. #ExcelTip — Select all the information in the spreadsheet, click Alt+N+T, then hit enter and you will have a table of information that will look like this:
5. In the “lost” column (13) filter all the numbers to get a list of all the SKUs that were misplaced/lost in the fulfillment center. We will use the list of lost items to manually check if Amazon reimbursed us or we need to request a reimbursement.
6. Go to Reports > Fulfillment > Inventory > Inventory Adjustments. Copy one SKU or FNSKU of the list of lost items and paste it in the correspondent field in the Inventory Adjustment page.
This will generate a detailed report of all the units that were misplaced. In this example, I have 8 units lost, 3 units damaged at Amazon and 2 units found.
7. Click on the arrow next to the reason for the transaction and check if Amazon has reimbursed you or if they found your item. In my case, Amazon reimbursed me for all the units lost and damaged.
8. Click on the word “Reimbursed” to go to the reimbursements report which gives you all the transaction information like date, reimbursement ID, quantities, total amount, etc.
I always check the reimbursements report because sometimes Amazon reimbursed for less money than they should. The formula for the reimbursement amount (RA) is your price (P) minus the Amazon referral fee or any applicable fees (%).
If in Step 7 you don’t see an arrow next to the transaction reason, this means that Amazon hasn’t taken any action to solve the issue. They neither have reimbursed you nor found your items. Considering that Amazon can take up to 45 days to take action, if your transaction is out of that waiting period, you can open a case to request a reimbursement.
2. Click “Selling on Amazon” > Scroll down and click on “Or, browse for your issue in the menu”
3. In the left side menu, click on “Fulfillment by Amazon” to open more options > click on “Inventory Damaged or Inventory Lost in Warehouse”
4. Then select the reason for the reimbursement request, which can be lost or damaged. For this example, I selected “Investigate Inventory Lost in FBA Warehouse”
Here you will need to describe your issue and add as much information as possible using the Inventory Reconciliation report to support your claim. #SellerSupportHack: we recommend adding attachments to your cases to avoid getting an automatic response from Seller Support. They must respond to your case in less than 48 hours if they don’t, open a new one.
“Hello Amazon team,
We are requesting the reimbursement of ONE (1) unit of the FNSKU X00054545R that was lost in the warehouse.
Attached you will find the screenshot of the inventory adjustments.
Please advise,”
In today's fast-paced e-commerce environment, every cent counts, and managing your FBA inventory effectively is crucial for maintaining profitability. Being on top of your inventory can make a huge difference in your business because lost and damaged items are very common when using FBA. By rigorously reconciling your inventory with the steps we've outlined, you can ensure that discrepancies are promptly identified and addressed.
As a seller, you deserve to get every cent owed to you for inventory mishaps. Adopting this manual approach might seem daunting at first, but with practice, it becomes an integral part of your routine, safeguarding your investment. Should you find yourself overwhelmed or short on time, consider the automated tools available that can streamline this process even further.
Amazon typically takes up to 45 days to reimburse sellers for lost or damaged inventory. If you haven't received a reimbursement after this period, you should file a claim.
Yes, if items are lost in transit to an Amazon FBA warehouse and they were shipped using Amazon-approved methods, you are eligible for reimbursement.
If Amazon's reimbursement is less than expected, review their reimbursement policy and contact Seller Support with evidence to dispute the amount.
Yes, you should submit reimbursement requests within 18 months from the date the inventory discrepancy occurred.
You should provide detailed information of the discrepancy using the Inventory Reconciliation report and any other relevant documentation, such as photographs or correspondence.
Yes, there are several automated tools available that can reconcile your inventory and file reimbursement requests on your behalf, saving you time and effort.
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