Dealing with lost or damaged FBA inventory is a common issue for Amazon sellers, and it’s important to address these problems efficiently to minimize losses and maintain business operations. Amazon has processes in place to help sellers resolve these issues, but understanding how to handle lost or damaged inventory is key to protecting your business. Here’s a step-by-step guide on how to deal with lost or damaged FBA inventory:

1. Understand the Types of FBA Inventory Issues

FBA inventory issues can be categorized into two main types:

• Lost Inventory: This occurs when products are misplaced, cannot be located within Amazon’s fulfillment centers, or fail to show up in inventory after being received.
• Damaged Inventory: This happens when products are physically harmed during storage, handling, or fulfillment at Amazon’s warehouses.

2. Monitor Your Inventory Reports

Regularly check your FBA Inventory Health and FBA Inventory Age Report in Amazon Seller Central. These reports provide insights into your inventory status and can help you identify discrepancies in your stock levels. If you notice that the quantity of inventory doesn’t match what was sent or received, investigate further.

Steps to access inventory reports:

1. Go to Reports in your Amazon Seller Central account.
2. Under Fulfillment, select Inventory Reports.
3. Download relevant reports like FBA Inventory, FBA Transaction, or FBA Age of Inventory to keep track of stock levels and discrepancies.

3. File a Claim for Lost or Damaged Inventory

If you suspect that your inventory is lost or damaged, you can file a claim with Amazon for reimbursement. Amazon has a policy in place for damaged or lost items, and you can initiate a claim through Seller Central.

Steps to file a claim:

1. Go to Performance in Amazon Seller Central.
2. Click on Account Health and then select FBA Feedback or Inventory Adjustments.
3. Select the Lost or Damaged Inventory option.
4. Review the details and provide supporting evidence, such as photographs of damaged goods (if applicable) or tracking information for lost items.
5. Submit the claim for reimbursement, specifying the quantity and value of the lost or damaged goods.

Amazon will usually investigate the issue and issue a refund for the cost of the lost or damaged inventory, provided it’s within their reimbursement policy. Note that Amazon only reimburses sellers for lost or damaged inventory within 18 months of the event occurring, so it’s important to file claims in a timely manner.

4. Keep Documentation and Evidence

When filing a claim for lost or damaged inventory, providing proper documentation is essential. Amazon will require details like:

• Order number or shipment tracking information to prove you sent the products.
• Photographs of damaged goods (if applicable).
• Receipts or invoices showing the value of the goods.

The more thorough your documentation, the easier it will be to resolve the issue and ensure reimbursement.

5. Use the FBA Reimbursement Report

Once you file a claim, you can track your reimbursement progress via the FBA Reimbursement Report in Seller Central. This report shows which items have been reimbursed and for what amounts. It’s important to regularly review this report to ensure that all eligible inventory losses or damages are accounted for and reimbursed.

To access the FBA Reimbursement Report:

1. Navigate to Reports in Amazon Seller Central.
2. Select Fulfillment and then choose FBA Reimbursement Report.
3. Review the details of reimbursements that have been processed.

6. Address Issues with Your FBA Shipments

If the loss or damage occurs during the shipment to Amazon’s fulfillment center, you’ll need to work with your carrier and Amazon to identify the cause and resolve the issue. Here’s what you can do:

• Track the Shipment: If your inventory is lost in transit, contact the carrier and provide tracking details to trace the shipment. If Amazon can’t find the inventory at their warehouse, you may be able to claim reimbursement through your carrier or Amazon.
• Check Shipment Receipts: Ensure the products were delivered and received properly at Amazon’s warehouse. Sometimes inventory discrepancies happen if there’s a mismatch between what was sent and what was received. Check your Shipment Summary report for confirmation of what Amazon received.

If the issue persists, you can contact Amazon Seller Support and file a claim to resolve it.

7. Prevent Future Damage or Loss

Preventing lost or damaged inventory in the first place is essential to improving the long-term success of your business. Here are some tips to avoid these problems:

• Proper Packaging: Ensure that all inventory is packaged securely to avoid damage during storage and shipping. This includes using the right size boxes, cushioning materials, and adhering to Amazon’s packaging requirements.
• Accurate Shipment Information: Double-check shipment labels and ensure that all inventory is properly scanned and tracked when it leaves your warehouse. Mismatches between the expected and received products can lead to discrepancies.
• Choose Reliable Carriers: Use trustworthy carriers to minimize the risk of lost inventory during transportation to Amazon’s fulfillment center. Ensure they offer adequate tracking and insurance options for your shipments.
• Frequent Inventory Audits: Regularly audit your inventory to catch issues early. Use inventory management software or Amazon’s tools to monitor stock levels and prevent loss.
• Work with Amazon’s FBA Team: Communicate with Amazon regularly to stay up-to-date on any issues or policy changes regarding inventory loss or damage.

8. Use Amazon’s Long-Term Storage Fees (LTSF) and Removal Options

If you have old inventory sitting in Amazon’s warehouses that you suspect might eventually be lost or damaged, consider removing it before long-term storage fees kick in.

Amazon charges long-term storage fees for products that have been in their warehouses for over 365 days. You can request to have your inventory returned or disposed of via Removal Orders.

Steps to create a removal order:

1. Go to Manage Inventory in Seller Central.
2. Select the inventory you want to remove.
3. Click on Action and select Create Removal Order.
4. Choose whether you want the items returned to you or disposed of.
5. Review and submit the removal request.

Removing old inventory reduces storage fees and the risk of potential damage, which can affect your bottom line.

9. Utilize Amazon’s Customer Service for Support

If you have difficulties or concerns regarding lost or damaged inventory, Amazon’s Seller Support team can assist. You can contact them through the following channels:

• Seller Central Help: Use the “Help” section in Seller Central to submit a case or inquire about issues.
• Amazon Seller Forums: The Seller Forums may offer insights from other sellers who have faced similar issues.
• Phone or Chat Support: Speak directly with Amazon representatives if you need immediate help or guidance on your situation.

Conclusion

Dealing with lost or damaged FBA inventory can be frustrating, but with proper management and prompt action, you can resolve most issues efficiently. Regular monitoring, timely claims, and preventing future damage or loss are essential for minimizing disruptions to your Amazon business. By taking proactive steps to address these issues, you can maintain a healthy inventory, improve your business operations, and ensure that your products continue to move smoothly through Amazon’s fulfillment network.