We consider several factors when determining an item's fair market value, including your sales history, the average FBA selling price on Amazon, the applicable Amazon grading standards, the sales history of the specific ASIN and the applicable rate of taxes etc. If we don’t have enough information to calculate the reimbursement amount for an item, we will assign a value to your inventory based on similar items.
Effective Reimbursement Value = (Effective Reimbursement rate) x [(Fair Market Value of unit) - (Amazon SOA and FBA Fees)]
Effective reimbursement value = (Effective Reimbursement rate) x [(Fair Market Value of unit)- (Amazon SOA and FBA Fees)]
Effective Reimbursement rate is available in Reimbursement Rates And Grade Based Reimbursements
Reimbursements processed are available in Reports >Fulfilment by Amazon>Payments>Reimbursements.
To check the fee reimbursement policy, refer Reimbursement Policy For Fees Of Undelivered, Customer Rejected Shipments and Incorrect Weight Handling.
In such cases, Amazon shall pay you the reimbursement rate as a percentage of the evaluated fair market value of your damaged inventory less any applicable FBA and Selling on Amazon fees (subject to applicable grading standards utilized by Amazon).
Effective Mar 2020, the grading process will be applicable only for mobile phones, apparels, shoes, luggage, jewellery, large appliances (AC, Refrigerator, Washing Machine,Dishwasher, Microwaves and Ovens), and Television.
We expect sellers to remove all their unsellable inventory and use the colour-coded stickers to identify the inventory grade (for mobiles,large appliances and television). You can use the Removal Report1 to identify all unsellable inventory that is currently present in Amazon fulfilment centres.
1Please click here to go to the Amazon Fulfilled Reports . You will get all the “Removal Report” in this page.
If a customer-returned/rejected mobile phone is received at an FC where we do not have grading process set up, we will reimburse at an effective reimbursement rate of 30%. Refer to this link to view the reimbursement rate applicable across other categories.
SCRR for a seller in a category is calculated as (Returns of a seller due to product quality issues in a category) / (Shipped units of the seller for the entire category) for a particular time period. Seller can check SCRR of each product for last 30 days period on ‘Voice of Customer’ (VOC) dashboard click here. To understand the return reasons considered as SCRR , please check FAQ 9.
You can track your SCRR in the VOC dashboard in your Seller Central page . Also, this information will be communicated to you over the email.
Our account will become ineligible for customer damage reimbursement when the customer return is due to Seller Controllable defects.
You can find a list of returned FBA purchases in the FBA customer returns report.
Seller controllable returns refer to products that were returned by the customers owing to product related issues controllable by/attributable to seller; for example, customer receiving a defective/damaged product, customer faced size and fitting issues, quality of the product is not as per customer’s expectation, inaccurate and incomplete information is provided on the product detail page.
Read more about seller-controllable returns here on Seller Central policy page.
You can improve your SCRR by:
Sellers can raise an appeal by ‘Contact Us’ on Seller Central to showcase that they follow customer-friendly selling practices such as high quality packaging, dunnage and good quality products to avoid such issues. It will be a seller’s responsibility to prove that product quality issues are not attributable to them. Amazon’s review of the charges will be in accordance with its policies.
In case of further queries kindly reach out to us by clicking Contact us on Seller Central.
According to our policy, the Used and Certified Refurbished products are not eligible for Customer Damaged Reimbursements. Even if the reimbursements are paid out, we will proactively clawback the amount.
To know the reimbursement value against each category, click Reimbursement Rates And Grade Based Reimbursements.
In such cases, Amazon shall either :
In such cases, if we find the item “Damaged”, then Amazon will clawback partial reimbursement ( Based on the difference of the 100% Fair Market value less any applicable FBA and Selling on Amazon fees and actual reimbursement paid for the product) . If we find the item as not “Damaged”, then Amazon will clawback the entire reimbursement paid out in such cases.