How do I know if Amazon is under-reimbursing me for lost or damaged FBA inventory?
Think Amazon always pays you back in full for lost or damaged FBA inventory?
Many sellers are unknowingly under-reimbursed sometimes by hundreds or even thousands of dollars. If your shipments go missing or arrive damaged at Amazon’s fulfillment centers, you should be compensated. But without checking, you may never realize what’s missing. Most sellers assume Amazon handles it automatically, but that’s not always the case.
This blog walks you through what counts as reimbursable inventory, how to use Amazon’s reports to spot shortfalls, and how to make sure you’re not leaving money on the table. Whether you manage this manually or use expert Amazon reimbursement services, it pays to verify every dollar.
What counts as reimbursable inventory?
Not all inventory issues qualify for a reimbursement but many do, and sellers often miss them. Amazon defines reimbursable inventory as any item that was lost or damaged while under their control.
That includes items misplaced in Amazon’s fulfillment centers, damaged by Amazon during handling or storage, or lost in transit between warehouses. If Amazon confirms the issue and the item is not recovered within a set timeframe (usually 30 days), you are eligible for reimbursement.
You may also be reimbursed if a customer fails to return a product after a refund, or if a returned product is received in a damaged or unsellable condition caused by Amazon. However, products damaged due to poor packaging, incorrect labeling, or seller error usually do not qualify.
It’s essential to know what’s covered and what’s not so you can audit your inventory and request reimbursements confidently. If you’re unsure how to track these cases, this is where working with the best Amazon reimbursement service can make a big difference by automating checks and securing your lost revenue.
How to check if you’re being under-reimbursed for lost or damaged FBA inventory?
1. Use the Inventory Adjustments report and filter by “Lost” or “Damaged”
Amazon may not always reimburse you fully for lost or damaged inventory, which is why it’s important to check for yourself. Start by downloading the Inventory Adjustments report in Seller Central.
Apply filters to show only items marked as “Lost” or “Damaged.” This gives you a clear view of what Amazon has acknowledged.
Next, cross-check these records with your Reimbursement report. If an item appears in the adjustments list but not in your reimbursements, that could be a red flag. Also, review your Shipment reports and compare the number of units sent with the number received by Amazon. Discrepancies here are another sign you may be owed money.
If you notice that Amazon did reimburse you, but the amount is less than your cost of goods, you’re still underpaid. Keeping this process regular ensures fewer missed reimbursements-and more recovered revenue over time.
2. Cross-reference with Reimbursement reports
If you’re relying only on Amazon’s notifications to catch reimbursement issues, you’re likely leaving money on the table. One of the most effective ways to spot under-reimbursement is by cross-referencing your Inventory Adjustments with your Reimbursement reports.
Start by pulling your Inventory Adjustments report and filtering by “Lost” or “Damaged.” Make a note of affected ASINs and the quantity.
Next, download your Reimbursement report and search for matching claims.
- Do the reimbursed ASINs match the lost or damaged ones?
- Was the quantity reimbursed in full?
- Check the amount Amazon paid.
- Was it less than your cost of goods or retail value?
This process helps you flag discrepancies Amazon may have missed or underpaid. For sellers managing large catalogs, this manual check can be time-consuming. That’s why many turn to the best Amazon reimbursement service to automate this critical part of FBA recovery.
3. Check Shipment reports to match units sent vs. received
One of the most effective ways to spot under-reimbursement is by reviewing your Shipment reports. These reports show how many units you sent to Amazon and how many they received. Sounds simple but small mismatches can mean big losses over time. If you sent 100 units and Amazon only received 95, you could be missing out on five units’ worth of sales or reimbursement.
To check, go to your Amazon Seller Central dashboard and access the Manage FBA Shipments section. Download the report for each shipment and cross-check the “Shipped” vs. “Received” column. If there’s a discrepancy, verify that it was not already reimbursed by cross-referencing your Reimbursement report.
Even one missing unit per shipment can add up quickly across hundreds of orders. If you are not regularly checking, you could be leaving money on the table, something the best Amazon reimbursement services are built to prevent.
4. Identify if the reimbursed amount is less than the cost of goods
Amazon may reimburse you for lost or damaged FBA inventory but that doesn’t mean they always get it right. Sometimes, the amount reimbursed is less than your actual cost of goods. To check this, start by reviewing your Reimbursement Report in Seller Central.
Look at the amount reimbursed for each SKU and compare it with your product’s landed cost-which includes manufacturing, shipping, and any other prep costs.
If Amazon reimbursed less than your actual expense, you may be under-reimbursed. This happens more often than sellers think, especially for higher-value or bundled products. Keep a cost sheet for each SKU so you can quickly identify shortfalls.
Working with a trusted Amazon reimbursement service can help flag these discrepancies and file claims with accurate data saving you time and recovering money that would otherwise go unnoticed. By filing claims with accurate data and the right supporting documents, they increase the chances of approval while reducing the back-and-forth with Seller Support. This not only saves you valuable time but also ensures that money you might have missed is recovered without disrupting your workflow.
5. Manual method vs. automation tools
Many sellers never realize they are being under-reimbursed for lost or damaged FBA inventory. Start with the Inventory Adjustments report and filter it by “Lost” or “Damaged.” Then cross-check these entries against your Reimbursement report to see if Amazon paid you.
For inbound shipments, use Shipment reports to match how many units were sent versus how many were received. Now comes the tricky part: compare the reimbursement value with your cost of goods. If the amount is lower, Amazon might be underpaying you.
Doing this manually is time-consuming and easy to miss. That is why many sellers turn to automation tools or Amazon reimbursement services that scan reports, flag missed claims, and help you recover what you’re owed without the guesswork. Either way, checking regularly is key to protecting your margins.
Final words
Missing reimbursements might not seem like a big deal at first-but over time, they add up to real profit loss. Many sellers assume Amazon handles everything automatically, but even small discrepancies in lost or damaged inventory can leave hundreds or thousands of dollars unrecovered.
By regularly checking reports and comparing reimbursement amounts with your true costs, you can spot underpayments and claim what you’re owed. If manual tracking feels overwhelming, the best working with an experienced Amazon consultant can take over this task for you ensuring nothing slips through the cracks.
Remember, protecting your margins isn’t just about boosting sales, it’s also about recovering every dollar you’ve already earned. Contact us today!
