On July 24, 2024, Amazon announced significant changes to its reimbursement policy. According to this update, the reimbursement claim window has been significantly shortened, and an automated system has been introduced. How can you adapt to Amazon’s new policy and avoid missing out on reimbursements? In this post, we’ll explain three essential strategies to respond to Amazon’s reimbursement policy changes and how partnering with Refully can help you navigate these changes successfully.
You must have received an email from Amazon regarding the policy changes mentioned above.
The major changes are categorized into two parts: the shortened claim window and the automated reimbursement system.
As of October 23, 2024, Amazon's reimbursement policy changes will go into effect, significantly shortening the reimbursement claim window. Sellers will need to file claims for lost or damaged inventory within the new, shorter timeframe.
Then, starting from November 1, 2024, Amazon will introduce an automated reimbursement system for certain cases, such as lost inventory in fulfillment centers. This system will automatically issue reimbursements without requiring sellers to file manual claims.
So, what does this mean for sellers? What actions do you need to take to adapt?
📍Shortened Reimbursement Claim Window
Previously, sellers had up to 18 months to file claims for lost or damaged inventory.
However, under the new policy, the claim period has been significantly shortened as follows:
📢 Lost or damaged inventory in fulfillment centers: 18 months → 2 months (60 days)
📢 FBA customer returns: 18 months → 4 months (120 days)
Claims can be submitted between 60 and 120 days from the date the refund or replacement was issued to the customer.
📢 Removal claims for items lost in transit: 18 months → 2.5 months (75 days)
• A removal claim for items lost in transit can be submitted 15-75 days from the shipment-creation date.
• If the inventory is returned to the seller, the claim must be submitted within 60 days of the return date.
📢 All other removal claims: Must be filed within 60 days.
These changes require sellers to monitor their inventory more frequently and proactively identify items eligible for claims to respond swiftly.
📍 Introduction of Automated Reimbursement System
Starting on November 1, 2024, Amazon will automatically reimburse sellers for inventory lost in its fulfillment centers.
This means that once an item is reported as lost, Amazon will automatically issue the reimbursement without the need for the seller to file a claim. This new system is expected to save sellers both time and money.
However, for cases beyond warehouse lost and damaged and customer returns, sellers will still need to manually file claims. Therefore, consistent monitoring of your account is crucial to ensure that nothing is missed in situations where Amazon’s automatic processing is not applied.
With Amazon’s new policy, the average claim window has been drastically reduced from 18 months to 60 days. This change requires sellers to audit their data more frequently and respond more quickly. The key point here is that sellers risk losing their chance to file a claim if they fail to act before the claim window expires.
To avoid missing out, sellers should frequently monitor their accounts and act as soon as any discrepancies arise. Identifying issues quickly and reporting them promptly is essential for dealing with the shortened claim window.
After October 23, 2024, the average claim window will be shortened to 60 days. This means any claims that have not yet been processed must be completed immediately. After this deadline, the opportunity to file a claim for past issues that had an 18-month window will disappear, and you will no longer be able to receive reimbursement.
• October 22, 2024 (18 months): Claims can be filed for refunds dating back to April 22, 2023
• October 23, 2024 (60 days): Claims can be filed for refunds dating back to August 24, 2024
You can’t afford to delay—once the claim window shortens, unprocessed reimbursements could be void. If you have pending claims from the past 18 months, complete them now. Conduct an account audit or use a professional service to ensure no reimbursements are missed. If handling this manually seems overwhelming, consider using a professional audit service to assist with this process efficiently, ensuring you don't miss out on any valid reimbursements.
Amazon’s new reimbursement policy presents both opportunities and challenges for sellers. While the automation system simplifies some tasks, timely and accurate responses are still essential. With the claim window being significantly shortened, sellers must be proactive in managing their data and filing claims promptly.
Refully can help sellers efficiently audit their accounts and ensure that no eligible reimbursements are missed. With Refully’s assistance, you can maximize your reimbursements from past claims while staying fully prepared for future changes. Partnering with Refully ensures that even in the face of these policy changes, your business will continue to thrive with quick, accurate, and successful reimbursement responses.
