FBA-FC Reimbursement FAQ

General FAQ

1. How is the Fair Market Value Estimated?

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)]

2. How is the effective reimbursement value calculated?

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

3. Where can I view my reimbursements?

Reimbursements processed are available in Reports >Fulfilment by Amazon>Payments>Reimbursements.

4. How are the fees reimbursed for Undelivered and Customer Rejected Shipments?

To check the fee reimbursement policy, refer Reimbursement Policy For Fees Of Undelivered, Customer Rejected Shipments and Incorrect Weight Handling.

FAQ’S related to Damages

1. What happens when inventory is damaged (damaged by an Amazon partnered carrier, in the fulfilment centre during provision of storage services by Amazon, during delivery to customer, damaged by customer or damaged at time of removal)?

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).

2. Is this grading process applicable for inventory across all categories?

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.

3. Can I remove unsellable inventory only for specific grade?

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.

4. I have an unsellable mobile phone that does not have a grade sticker. What should I do?

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.

5. What is SCRR (Seller Controllable Return Rate)?

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.

6. How can I track/monitor my SCRR?

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.

7. When will my account become ineligible for customer damage reimbursements?

Our account will become ineligible for customer damage reimbursement when the customer return is due to Seller Controllable defects.

8. Where can I view my customer returns used to calculate SCRR?

You can find a list of returned FBA purchases in the FBA customer returns report.

• Use the View Online option to view an order level summary.
• Use the Download option to view all your returns for a specific date range.

9. What type of customer returns are considered to calculate my SCRR?

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.

10. How can I improve my SCRR?

You can improve your SCRR by:

• Doing regular quality checks on the products you wish to sell before shipping it to the customer. Do not send defective products to the customer.
• Provide detailed and accurate description of the product on the product detail page.
• Wherever applicable, do mention the size of the items and provide corresponding size charts to avoid size and fitting issues by customers.

11. How can I raise an appeal to review the SCRR Clawback?

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.

12. Does Used and Certified Refurbished products get Customer Damage reimbursement?

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.

13. How do I find the reimbursement rate of my category?

To know the reimbursement value against each category, click Reimbursement Rates And Grade Based Reimbursements.

FAQ’S related to lost items

1. What happens when inventory is lost (lost by an Amazon partnered carrier, in the fulfilment centre during provision of storage services by Amazon, during delivery to customer, at time of return from customer or at time of removal)?

In such cases, Amazon shall either :

1. Replace the item(s) with one with the same FNSKU, or
2. Pay you the evaluated fair market value of the lost inventory less any applicable FBA and Selling on Amazon fees.

2. What happens when items which were previously deemed to be lost in transit and reimbursed accordingly are found?

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.