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Amazon FBA Auditing: 5 Fundamentals You Should Know

  • 5 min read
  • Amazon, Blog
amazon fba auditing

Get Back What You Are Owed with FBA Auditing

FBA auditing is a process to determine the number of refunds you are owed due to Amazon’s errors in fulfilling orders and managing inventory on your behalf. Mistakes happen. But you shouldn’t pay for those mistakes

You might think Amazon automatically reimburses Amazon FBA sellers for these mistakes. In most cases, Amazon doesn’t. This is why FBA auditing is necessary, to identify instances where you are owed reimbursement for products misplaced, misrecorded, or lost by Amazon.

How much might FBA auditing gain back for your business?

According to GETIDA (GET Intelligent Data Analytics), an FBA auditing company founded by Amazon FBA sellers to identify and recover Amazon FBA reimbursements, there are about 1 to 3 errors for every 100 FBA inventory units shipped. That means Amazon is doing a pretty good job of handling inventory. Except that in those few cases it doesn’t, it could cost you.

FBA auditing can uncover 1% to 3% of errors that affect your profitability. Say your revenues are $1 million. That means you could be losing out anywhere from $10,000 to as much as $30,000.

To understand how FBA auditing works let’s take a look at 5 key fundamentals:

  1. Types of Amazon FBA reimbursement claims
  2. Expiration dates to file claims
  3. Whether you can perform your own FBA auditing 
  4. Why you can’t ignore FBA auditing
  5. The best Amazon FBA auditing  solution

Types of Amazon FBA Reimbursement Claims

Anything in your inventory that is lost, damaged, improperly returned, destroyed or disposed of, or overcharged for handling fees is uncovered by an FBA audit.

Lost inventory can occur during shipping, at the Amazon fulfillment center if it is incorrectly placed in another Amazon seller’s account, or when a barcode is incorrect.

Products are sometimes lost or damaged at the Amazon fulfillment center, or en route to or from the fulfillment center.

Returns and refunds also represent a significant portion of discrepancies FBA auditing can uncover. Returns that are never paid out, customers who receive refunds but never return products, overcharges, and damaged and incorrect returns can all qualify for adjustments.

Amazon can also destroy and dispose of any inventory it deems unsaleable without your approval. And Amazon needn’t and doesn’t notify you when it does so. But you are owed an adjustment when it does.

Another potential claim is when you are charged for storage and shipping based on inaccurate product size and weight. FBA auditing can determine whether Amazon is charging you for inventory that is larger and/or heavier than it actually is.

Expiration Dates to File Claims

FBA auditing isn’t something you can put off until you can get around to it. You must file a claim within 18 months of when an identified discrepancy occurs. In addition, FBA auditing claims must be submitted to the appropriate department, or else they are rejected and you must refile.

Can Sellers Perform Their Own FBA Auditing?

Can you perform FBA auditing yourself? You could, assuming you have the time to continually monitor your Seller Central account for payment errors and regularly review shipping reports for mistakes regarding product shipment, fulfillment, and customer returns. The more SKUs you have, the more laborious an undertaking this becomes.

On top of that, you have to document and submit claims to the appropriate departments within 18 months.

Doing FBA auditing is a tedious process if you try to do it yourself. If you hire someone to do it for you, that’s an added expense to your overhead, and without a guarantee that FBA auditing will recover enough in refunds to justify that expense.

This is why it is easy to gamble that perhaps the effort of FBA auditing isn’t worth the potential reward.

However, that isn’t a gamble you can afford to take.

FBA Auditing: Something You Can’t Ignore

Remember that errors uncovered by FBA auditing can add up to anywhere between 1% to 3% of your annual revenues. That’s potentially a lot of money to leave on the table. Your business is less profitable, possibly even not profitable. And you have fewer funds available to source new products and sustain your business.

If only there were a way to perform FBA auditing without a lot of risks and minimal expense to determine if you have sufficient refund claims and submit those claims properly and expeditiously.

Fortunately for your business success, there is a risk-free FBA auditing service that is free to use.

The Best Amazon FBA Auditing Solution

GETIDA makes the whole FBA auditing process easy and cost-effective. It takes about 4 minutes to sign up for free FBA auditing. You read that right, the FBA auditing is free. GETIDA software examines the past 18 months of your Amazon FBA transactions to flag potential discrepancies for reimbursement. Review an easy-to-read dashboard to determine if there are sufficient instances to submit claims. With your approval, an experienced team of former Amazon reimbursement employees submit claims and follow up to ensure success. There is still no charge.

You are only charged a percentage of whatever claims are successfully approved. And the first $400 in Amazon FBA reimbursement claims are free.

Click the “Free Signup” button and provide the requested information. There’s no obligation. It’s the best and easiest way to perform FBA auditing.