Maximize Your Amazon Revenue Through Lost Refund Recovery
If you’re an Amazon FBA seller, you’re probably well aware that there’s a lot to love about this amazing platform.
Yet, as we’re about to show you, it’s possible that you’re actually falling short of your revenue goals through no fault of your own. It’s because of lost refunds Amazon owes you.
Don’t worry, though. In this article, we’re going to explain what lost refunds are and what you can do to get that money back.
What Is Lost Refund Recovery?
While using Fulfilled by Amazon (FBA) comes with a number of benefits, the platform is far from perfect. Mistakes can still be made on Amazon’s side. Sadly, too many FBA sellers simply expect that the popular company is such a well-oiled machine that they don’t need to do their due diligence to ensure they’re getting all of the money that’s owed to them.
One very prevalent example of this is the FBA refund reimbursements sellers are owed. This is what happens when a buyer asks for a refund. Amazon’s policy is to take the money from the buyer’s account right away to refund the customer. That customer then has 45 days to return the product.
If this doesn’t happen, Amazon owes the seller a refund. However, they don’t always process it, meaning you could be missing out on lost refunds that are rightfully yours.
It’s not on purpose, of course. It’s just that their legendary automation sometimes drops the ball – or, in this case, your refund.
Lost Refunds Could be Costing You Thousands of Dollars
Some people might consider this the cost of doing business. Again, FBA is such a phenomenal source of income for so many, it might be easy to brush off a lost refund from time to time.
Except if you’re moving large sums of inventory, “from time to time” could really mean “once or twice a week,” in which case your lost refunds might be worth thousands of dollars.
Thousands. Of. Dollars.
We bring this up so it’s clear this isn’t some minor problem. Over the course of an entire year, lost refunds could be worth enough to free you from your 9-to-5 job. They could be enough to get your child’s college fund off the ground. You could simply use that money to bankroll other products to sell on Amazon.
Clearly, lost refunds aren’t to be taken lightly. But what can you do about them?
Check to See if You’re Owed Lost Refunds
When Amazon provides a refund to one of your customers, they notify you with an email. The subject line will read, “Refund initiated for order.”
If you ever receive one of those emails, move it to a dedicated folder so you can easily find it again.
It also wouldn’t be a bad idea to set yourself a reminder to check back in 45 days to see if the customer actually made good on returning your item.
The only way you’re going to catch lost refunds, though, is by doing the necessary research yourself. Depending on how much you sell, you could need to do this several times a month – maybe even more often than that.
In any case, to check for lost refunds, you’ll want to:
1) Log in to your FBA Seller Account and hover over REPORTS at the top of the page
2) Click on PAYMENTS from the dropdown
3) Filter by REFUND, choose whichever timeframe you want, and then click on UPDATE
The report that comes up will show you which items Amazon refunded customers for from your account. However, this doesn’t tell you if these customers actually sent your items back.
Take the Merchant SKU or ASIN of the product in question and put into the search bar. If the ensuing search doesn’t show you the item you want, click the radio icon that reads, “Include Archived Items.”
If there’s no sign of your item in the results from that search, that means they have not been returned.
You’ll need to report the problem to Seller Support. Provide them with your Merchant SKU or ASIN and just tell them that the buyer was refunded, but you never received your product back.
What Happens When You Tell Amazon About Lost Refunds
Fortunately, Seller Support tends to be very good about handling these requests. As they’re basically just going to go through the same process you did to confirm the validity of your claim to lost refunds, you usually won’t even have to wait that long to get your money back.
Staying on Top of Your Lost Refunds
As we touched on earlier, though, it’s imperative that you make it a point to check back after 45 days to see if you’re owed money. The sooner you find out about a discrepancy with your inventory, the sooner Amazon can do their research, and the sooner you can get your money back.
While it’s certainly going to feel great to get a big fat check the first time you find a bunch of money you’re owed – the “FBA tax return,” if you will – it’s bad business to let this continue happening for prolonged periods of time.
At the moment, you may have a severely skewed idea of how much you can make from Amazon FBA simply because you have no idea about lost refunds that have been building up for months or even years.
An Easier Way to Find the Lost Refunds You’re Owed
Even though you now understand how much you could be owed because of lost refunds, that doesn’t mean you’re necessarily thrilled about going through the above process to find your lost refunds every time a customer asks for their money back.
Your time is valuable, after all.
The Refund Rescuer component of AMZSuite tracks every item that Amazon issues a refund for over the following 45 days. It even takes care of opening a case with Amazon when you’re owed money.
There’s a lot of money to be made with Amazon FBA, but that doesn’t mean you’re getting all the money you’re making at the moment. Use AMZSuite to make sure all of your hard work is (literally) paying off.