Unfair Reimbursement Of Our Lost Inventory By Amazon
We are facing an unacceptable situation as a small, American-made business. After investing around $300,000 in Amazon ads, we are shocked and appalled by the paltry reimbursement of $17 per unit for our 25 lost units.
A figure nowhere near our actual selling price of $249. What’s worse, Amazon has not been responding promptly; our case has been stuck on "Pending Amazon Action" for far too long.
This isn't just disappointing; it's outright damaging and unsustainable for a business of our size. The discrepancy between our investment in Amazon and the compensation offered when things go wrong is staggering and unfair.
Case ID : "15462733431"
Unfair Reimbursement Of Our Lost Inventory By Amazon
We are facing an unacceptable situation as a small, American-made business. After investing around $300,000 in Amazon ads, we are shocked and appalled by the paltry reimbursement of $17 per unit for our 25 lost units.
A figure nowhere near our actual selling price of $249. What’s worse, Amazon has not been responding promptly; our case has been stuck on "Pending Amazon Action" for far too long.
This isn't just disappointing; it's outright damaging and unsustainable for a business of our size. The discrepancy between our investment in Amazon and the compensation offered when things go wrong is staggering and unfair.
Case ID : "15462733431"
16 replies
Seller_kIukTwdhvntAp
"After investing around $300,000 in Amazon ads"
Ad spending is just extra cash for Amazon and has no bearing on any of the lost items. It just means that you donated money to Amazon and they thank you for your generosity.
"A figure nowhere near our actual selling price of $249."
Again, it doesn't matter what the selling price is -- Amazon thinks that your costs are closer to $17 than they are to $249. Unless you have a really wonderful margin they are obviously totally nuts -- but it's Amazon so they do what they do.
"The discrepancy between our investment in Amazon and the compensation offered when things go wrong is staggering and unfair."
This is 100% correct and true for every seller and even more so for Safe-T claims.
The solution is to sell as much as possible elsewhere and eventually get OFF AMAZON entirely, or hire an attorney and go to arbitration which would cost way more than the $3500 difference in reimbursement.
Seller_bUjF603m2i60R
It sounds like you're selling to the point where business insurance would be a requirement by Amazon. The insurance does not contribute?
Seller_qsEXhgkCrJzOz
So what's the deal? My items got lost in storage, and then Amazon replied that they didn't receive them, so they let it go and started shelving my case
Seller_HIvWUK4qKfWbj
Sorry to hear, but this is why we stopped sending stuff to FBA during covid. We had truck loads of gloves, masks and other protective gear that we have sold for over 10 years now. First, a couple of pallets went missing and it took 7 months before I got a refund. Then we had 2 trucks get received, but they marked the quantity 26 each, as a pallet count. We had over 2000 cases on the truck. We never got a dollar back from Amazon and after giving up communication, we started arbitration and then they magically corrected the issue. The very next day, Amazon restricted PPE stuff from almost all sellers, so we had to pay to have them send it all back to us. Amazon is not a place to try and make money off of anymore for us, we use it now to get rid of the cheap stuff chain stores do not want.
TaylorR_Amazon
Hey @Seller_IrsrBvokYiKbD, to calculate reimbursement value, Amazon compares several price indicators to determine an estimated sale price for the item when calculating the reimbursement amount. Item prices tend to fluctuate over time and may vary widely from seller to seller.
The price indicators Amazon compares are:
- The median price at which you have sold the item on Amazon over the past 18 months
- The median price at which other sellers have sold the same item on Amazon over the past 18 months
- The current list price you have set for the same item on Amazon or the mean list price if you have multiple listings for the same item
- The current list price for the same item from other sellers on Amazon
If Amazon does not have enough information to calculate the estimated sale price of a unit using the price indicators described above, Amazon will assign an estimated sale price based on the price of a comparable product.
If reimbursed for a shipment to Amazon claim, that amount will be for the estimated proceeds of a sale of that item. Estimated proceeds means the estimated sale price of the item for which you are being reimbursed minus referral fees and fulfillment fees.
Seller_IrsrBvokYiKbD
None of the stated conditions justify a reimbursement of $17 for an item priced at $249.
This was our first shipment of this SKU, so there is no median price history. Our average selling price is over $100, and this SKU is a higher-priced item. Similar ASINs listed have significantly higher prices.
The $249 selling price was set before the inventory was lost. Amazon's calculation of $17 is unfounded.
We demand to know the basis for this reimbursement amount. Our case has been "Pending Amazon Action" for far too long, which is unacceptable.
Please escalate this case immediately. We are facing a loss of more than $6,000 in this scenario, which is not sustainable for a small brand like ours.
TaylorR_Amazon
I will take another look at your case. Please feel free to keep this thread updated as well.
Seller_IrsrBvokYiKbD
Case ids: 15415998471 , 15462733431 , 15499638181,15515950651
Reimbursement ID: 15181979591
Lost Shipment ID : FBA180P68CZV
TaylorR_Amazon
I have escalated this and will let you know when I hear back. Thank you!
Seller_IrsrBvokYiKbD
Thank you, waiting for your positive response
Seller_IrsrBvokYiKbD
I haven't heard back from the support. It's been more than a month now.
TaylorR_Amazon
Hey @Seller_IrsrBvokYiKbD, the team has reached out to you directly via case 15597951591. Let me know if I can assist.
Seller_IrsrBvokYiKbD
Yes they have , but the issue is not resolved yet. It’s still in “Amazon Pending Action “. Please resolve this ASAP.
TaylorR_Amazon
Hi @Seller_IrsrBvokYiKbD, please see the latest update on your case. I am so happy to read the news!
Seller_IrsrBvokYiKbD
Thank you for assisting, finally some good news.
