Amazon Reversed Reimbursements: What to Do When Amazon Says You’re Reimbursed — But You’re Not

For many Amazon sellers, a notification of reimbursement is a welcome sight. But what happens when that reimbursement is unexpectedly taken back? This frustrating process, known as a reversed reimbursement, or “clawback”, can leave sellers confused, facing financial risk, and scrambling to understand what happened.

Don’t let this uncertainty impact your bottom line or complicate your financial forecasting. In this article, we’ll show you what you can do to gain control over the unpredictable nature of Amazon reversed reimbursements.

Reversals: Why?

Add unexpected Amazon recovery fees to these “clawbacks” and you have the makings of a surprise hit to your revenue that can often be avoided. Why do reversals happen?

An Amazon reimbursement clawback can feel like a frustrating game of give-and-take, especially when you thought a claim was settled. Prevention and reversing these reversals begins by understanding some of the key reasons Amazon might claw back a claim.

• Recovered Inventory: If Amazon later finds previously lost items they reimbursed you for, and the item is in sellable condition, they may return the item to inventory and reverse the reimbursement.
• Customer Return: If Amazon reimburses you for an unreturned item, but the customer later returns the item in good condition, even if after the return period, Amazon may claw back those funds.
• Incorrect Reimbursement: If a reimbursement is issued in error, perhaps due to misclassification or a system error, Amazon could reverse it.
• Policy Violations: If you have compliance issues or an account suspension, it could trigger reversals.
• Fee Adjustments: Adjustments to FBA fees or reconciliation of inventory may trigger reversals on affected transactions.

If you have a reversal, find the reason in your Amazon Reimbursements Report. In Seller Central, go to:

Reports > Fulfillment > Payments > Reimbursements

Download the CSV and look for the Reason column to see why the reversal occurred.

Understanding FBA reimbursement policy is the first step toward staying ahead of reversals. Fortunately, there are actions you can take to gain control. 

Gaining Control

Beyond the “why”, how can you gain control of Amazon reimbursement reversals?

Best practices include:

• Track Inventory Discrepancies: Reconcile your shipping plans with what Amazon receives, and use the Reimbursements Report and Inventory Adjustments Report to track changes.
• Monitor Customer Returns: If a customer refunds but doesn’t return the item within 45 days, you’re eligible for reimbursement. However, be prepared for the possibility that returns could end up coming in late, and if they’re in sellable condition Amazon may reverse the reimbursement.

• Document, Document, Document: This may seem tedious, but it’s important. Keeping a record of shipments, damaged goods, and customer communications can help if you have to dispute a reversal.
• Watch for “COMPENSATED_CLAWBACK” Fees: These indicate lost inventory found. Review these in your Payments Report under “Balance Adjustment.”
• Understand Amazon Policy: Be familiar with the rules of the road, what Amazon reimburses, and what they can reverse.
• Use Automation Tools: Amazon reimbursement services like Seller Investigators by Carbon6 can help identify missed reimbursements and track reversals, recovering lost funds.

Reversing the Reversal

If you believe a reversal was made in error, you can dispute it. Here’s what to do when Amazon reverses a reimbursement:

• File a claim within 60 days using the Contact Us page in Seller Central
• Include documentation, such as relevant order or shipment details, pricing info, and anything else pertinent to make your case.

Amazon will review your case and, if the evidence is strong and in your favor, they may reinstate the reimbursement.

Gain control of reimbursement reversals. Audit your account monthly, act swiftly within claim deadlines, then pair these actions with automation tools that track clawbacks and discrepancies so you can proactively dispute reversals with solid documentation.

Expert Management: Seller Investigators

While auditing your account and tracking clawbacks are essential, the amount of oversight required to manage all recoveries can be overwhelming. For sellers who want to save time and resources without sacrificing results, a dedicated solution is the answer.

Seller Investigators by Carbon6 provides the critical visibility and expert management needed to navigate these complexities.

Discover and reclaim the funds Amazon owes you. Seller Investigators recovers hidden profits by identifying inventory losses, shipping errors, and refund discrepancies.

Start your free Amazon reimbursement audit now and see what you’re missing.