Marketplace Reimbursements Case Study

✓$3.2M ARR brand, 45-minute audit = $13,247 recovered from Amazon FBA

✓3 findings: Lost inbound (40 units), warehouse damage (75 units), unprocessed returns (30 units)

✓Critical deadline: 60 days to file claims (down from 18 months in 2024)

✓New policy (March 2025): Manufacturing cost only = 50-70% less reimbursement

✓Annual leakage: 1-3% of FBA revenue = $20K-$96K for $1M-$3M brands

"That audit took 45 minutes. We made $13,247."

— Operations Manager, $3.2M ARR D2C Apparel Brand

That's what the operations manager at a $3.2M ARR D2C apparel brand said after reviewing their Amazon FBA inventory reports for the first time in nine months. They weren't looking for hidden refunds. They were just trying to fix what they thought was an inventory counting error.

They found $13,247 in reimbursements Amazon owed them—money that had sat on the table since early Q2, completely unclaimed.

The Setup: A Normal D2C Problem

The brand was shipping directly to Amazon FBA from their manufacturer in Vietnam. Orders were flowing in. Inventory was moving. Revenue looked solid.

But starting in Q2, the operations team noticed their inventory count in Seller Central didn't match their shipment records.

The Discrepancy:

They had shipped 200 units of a SKU to Amazon. The system showed only 160 units received.

→ Their first thought: Manufacturing error. We shorted the shipment.

→ Their second thought: Better ask the accountant.

Instead, they asked us to audit their Amazon account. That's when we found the real problem.

What We Found (In 45 Minutes)

Using Amazon's FBA Inventory Adjustments Report—a tool buried deep in Seller Central that most founders never look at—we pulled nine months of data. We weren't looking for lost inventory claims. That wasn't the goal. We were just reconciling shipments against receipts.

But in those reports, the pattern was obvious.

Finding #1: Lost Inbound Shipment (200 Units)

The brand had sent three shipments to Amazon totaling 620 units across multiple SKUs. Two arrived as expected. One arrived short by 40 units.

Amazon's receiving system showed 40 fewer units than the packing slip claimed.

Cause:

Likely a shipping damage/loss issue with the freight carrier (Amazon-partnered logistics). The units left the manufacturer intact but never made it to Amazon's warehouse.

Finding #2: Warehouse Damage (75 Units)

The FBA Inventory Adjustments Report showed inventory "adjustments" for damaged goods over a six-month span. 75 units across five SKUs had been marked as unsellable due to damage and removed from sellable inventory by Amazon's warehouse team.

The brand had never been told.

Amazon doesn't proactively alert sellers—they just adjust the inventory count.

Finding #3: Customer Returns Incorrectly Processed (30 Units)

Here's where it got complicated. The brand offers a 30-day return window. They'd issued refunds to customers, but 30 items were never actually received back at the warehouse, never marked as damaged, never restocked.

Amazon had taken the inventory adjustment, issued the customer refund, and didn't flag anything unusual.

The brand was out both the merchandise AND the refund. No reimbursement was filed.

The Math (And It Stings)

All three issues fell under Amazon's FBA reimbursement policy, but the brand had never filed a single claim.

Reimbursement Calculation

Issue	Units	Cost/Unit	Reimbursement
Lost Inbound Shipment	40 units	$200 mfg cost	$8,000
Warehouse Damage	75 units	$80 mfg cost	$6,000
Customer Returns Not Processed	30 units	$60 sale price (minus 30% fees)	~$1,260
Potential Total			~$15,260

But the brand only recovered $13,247 because:

→ Some items had partial FNSKU issues (harder to prove, lower reimbursement)

→ One shipment had weak documentation (appeal reduced payout)

→ Timing: They filed claims in late Q3, some were partial approvals

Bottom line:

$13,247 Recovered

from nine months of neglected inventory reconciliation

Why This Sat on the Table for Nine Months

The answer is simple: Nobody was looking.

→ The operations team was focused on fulfillment and customer service

→ The finance team was tracking revenue and margins

→ Sales was chasing new customers

Nobody owned "audit Amazon's FBA reports for lost inventory claims."

That's the game. Amazon's reimbursement system is automated on their end (mostly), but it requires active seller participation. You have to:

→ Know reimbursements exist (most founders don't)

→ Know where to look (buried in Seller Central reports)

→ Know how to prove the loss (requires comparing shipment records to FBA reports)

→ Know the deadlines (60 days to file, down from 18 months in 2024)

→ Actually file the claims (manual, tedious, no reminder from Amazon)

This brand missed every step because nobody had assigned ownership of this audit.

The Hidden Tax: Policy Changes (And Why Timing Matters)

Here's what most D2C brands don't know yet:

Amazon changed its reimbursement policy effective March 31, 2025.

Old Policy:

Amazon reimbursed based on your sale price minus fees.

A $280 item damaged? You got ~$190–$210 (after referral and FBA fees).

New Policy:

Amazon reimburses based on manufacturing cost only.

No fees, no shipping, no customs—just the cost to manufacture.

For a brand with 40% margin:

55% cut in reimbursement amount

Example Impact:

Old policy (75 units damaged)	($280 sale price – 30% fees) × 75	$14,700
New policy (75 units damaged)	$80 mfg cost × 75	$6,000
Difference		-$8,700

This brand dodged this bullet because they had mostly old-policy claims (items lost before the March cutoff). But any new claims after March 31? The payout is ruthless.

How to Find Your $13K (Step by Step)

Step 1: Assign Ownership (Today)

Tell your operations manager or accountant:

"We're doing an Amazon FBA audit for unclaimed reimbursements. This takes three hours max. You own it."

Ownership kills the "nobody is looking" problem.

Step 2: Download the FBA Inventory Adjustments Report (1 Hour)

Log into Amazon Seller Central:

1. Go to Reports → Fulfillment → Reimbursements

2. Download the FBA Inventory Adjustments Report

3. Export the past 9–12 months

You have 60 days to claim, so anything older than 60 days is lost money unless you have documentation.

Step 3: Match Shipments to Adjustments (1.5 Hours)

Open your shipment records (from your supplier or manufacturing partner). Compare what you shipped vs. what Amazon received.

Look for:

→ Shipments that arrived short (40 units sent, 35 received)

→ Inventory marked "damaged" in the adjustments report

→ Customer refunds issued without corresponding return items

Use a simple spreadsheet: Shipment ID | Units Sent | Units Received | Discrepancy | Documentation Available

Step 4: Prepare Proof (45 Minutes)

For each discrepancy, gather:

→ Original invoice from supplier (shows quantity ordered)

→ Packing slip (shows quantity shipped)

→ Shipment tracking (shows it arrived at Amazon)

→ Screenshots of the Amazon discrepancy (from adjustments report)

This is the hard part—finding these docs. Have your supplier send you copies if needed.

Step 5: File Claims in Seller Central (1 Hour)

For each discrepancy:

1. Go to Help → Get Support → Selling on Amazon

2. Select Inventory & Pricing → FBA Inventory Reimbursement

3. Open a case for each lost/damaged/unprocessed shipment

4. Attach your proofs

5. Amazon opens a case ID (they'll email you)

6. Wait 3–7 days for a response

Step 6: Track & Follow Up (15 Minutes)

Monitor your cases in Seller Central's Case Log. If Amazon denies a case, you can appeal with additional documentation.

Total time investment:

~4 Hours

Expected recovery: 1–3% of your annual FBA revenue

For this brand, that was $13,247 in ~45 minutes of focused auditing.

For larger sellers, it's often $50K–$200K+ in the same timeframe.

What Most Founders Get Wrong About Reimbursements

Myth #1: "Amazon will tell me if I'm owed money."

False. Amazon doesn't proactively alert sellers. You have to find it.

Myth #2: "I have 18 months to file a claim."

False (as of Oct 2024). You have 60 days for most claims now. That's about 10 days after month-end close.

Myth #3: "I'll get back my full selling price."

False (as of March 2025). You get back manufacturing cost, not sale price. That's 50–70% less than before.

Myth #4: "This is only for big sellers with big losses."

False. A $1M ARR brand can easily have $5K–$15K in unclaimed reimbursements. It's just friction preventing recovery, not the absence of money.

Myth #5: "My accountant handles this."

False (usually). Most accountants don't audit FBA inventory reports. They reconcile revenue. Those are different things.

The Real Cost of Not Finding This

For this brand, $13,247 wasn't found by accident. It was found because we assigned ownership and ran a systematic audit.

Now imagine what happens if they don't do this:

→ Next 60 days: Another $6K–$8K in reimbursement opportunities slip past the deadline and become unclaimable forever

→ Next quarter: More inventory adjustments happen, more claims become outdated

→ Annual leakage: 1–3% of FBA revenue = $32K–$96K per year, gone

For a brand operating on 15–20% net margins:

Losing $50K annually to unclaimed reimbursements is the difference between "scaling profitably" and "wondering why margins collapsed."

The Numbers That Matter

Metric	This Brand	Your Likely Opportunity
Annual FBA Revenue	$2.1M	[Your FBA GMV × 40%]
% of Revenue in Unclaimed Reimbursements	0.63%	1–3%
Months Since Last Audit	9	[Your number?]
Average Reimbursement Per Case	$312	~$300–$500
Cases Found in This Audit	42	[Depends on volume]

To find your $13K:

If your annual FBA revenue is $2M+, you likely have $20K–$60K in unclaimed reimbursements sitting in Amazon's system right now.

If you've never done a reimbursement audit, double that.

FAQ

Does this work for non-FBA sellers (FBM or merchant fulfilled)?

No. FBM sellers have far fewer reimbursement opportunities because Amazon isn't handling your inventory. But FBM sellers do have hidden fee overcharge opportunities (weight/dimension errors, wrong category fees). Same audit principle applies.

Can we automate this?

Partially. Tools like SELLERLOGIC Lost & Found or Seller Investigators can identify reimbursement cases automatically, but filing still requires documentation. For a $2M–$5M brand, automation saves 80% of the time and catches cases you'd miss manually.

What if Amazon denies my claim?

Appeal with additional documentation. The 97% success rate on lost inbound shipments suggests Amazon approves most legitimate claims—they're just waiting for proof. If you have invoices and tracking data, you'll likely win an appeal.

How does the new manufacturing cost reimbursement affect me?

You get less money back (50–70% less than the old policy). This makes filing claims more urgent, not less. You want to file old-policy claims before your grace period expires, and submit cost data for new-policy claims to maximize reimbursement.

Do I have to report reimbursements as income?

Yes. Reimbursements are taxable income (in the US and most jurisdictions). Your accountant should track them separately and disclose them on your tax return. They're a recovery, not a credit, so they count as revenue.

What's the success rate on customer return reimbursement claims?

Lower than lost/damaged (~60–70%). Amazon is stricter because it's harder to prove the refund was issued without receiving the item. You need strong documentation: refund records, return tracking, proof the item never arrived back. But wins are still common.

The Moment You Assign Ownership, You Find Money

That's the entire lesson.

Most $2M–$10M D2C brands are leaving $20K–$100K on the table annually because nobody owns the reimbursement audit. Not because the money isn't there. It is. It's just hidden behind a 60-day deadline and a tool buried in Seller Central.

Your next step is simple: Assign this audit to someone. Run it once. See what you find.

Frankly, this brand got lucky. Most founders don't even know this money exists until they're too late and the 60-day window has closed. Don't be that founder. Every quarter of delay is $5K–$15K of potential recovery walking away.

Stop leaving free money on the table.

Schedule a Free 15-Minute Operations Audit

We've helped 150+ D2C brands recover $200K–$800K in annual reimbursements by fixing their audit cadence, documentation practices, and filing discipline. We'll review your last 9 months of FBA inventory adjustments and tell you exactly how much Amazon owes you right now, before the 60-day deadline passes.

No pitch—just hard numbers on what Amazon owes you and how to claim it.

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