Amazon Warehouse Damaged Reimbursement: How to Claim Lost Inventory

When selling on Amazon FBA, a large portion of the work is left to Amazon, including holding your stock, selecting, packaging, and shipping your orders. But what if your products are damaged while they're in Amazon's warehouse? 

This is known as “warehouse damage”, and it happens more often than most sellers realize. On the bright side, Amazon has a reimbursement policy in place if this happens. However, you need to understand the policy's fine print and act quickly to recover the maximum amount possible.

What Is Warehouse Damage?

Warehouse damage to items and goods is defined as “damaged after Amazon has received them” at their fulfilment warehouses. Damage can occur during storage, internal handling, or during transfers between Amazon warehouses. Since the damage occurs within Amazon's custody, sellers may be eligible for a “warehouse damaged reimbursement” under the Fulfilment by Amazon (FBA) policy.

Unfortunately, these reimbursements are not automatic. As Amazon handles millions of items through its fulfillment network, it is easy for some to get lost, damaged, or fall through the cracks. This is why, as an Amazon seller, you must actively monitor your FBA inventory reports and post any claims within Amazon's allowed time frame.

Amazon’s Reimbursement Policy at a Glance

Amazon's FBA inventory reimbursement policy outlines what qualifies for reimbursement and what does not. If your items are lost or damaged after being received at an Amazon fulfilment centre, you can file a "Fulfilment Centre Operations" claim.

Timing is key here, as sellers are offered only 60 days from the date of damage to file a reimbursement claim, though this period may be shorter depending on location or claim type. If you wait too long, your period of eligibility will lapse, and Amazon will not have to compensate you.

As of the start of 2025, Amazon updated its policy to clarify that reimbursement amounts for damaged inventory are now based on the product’s manufacturing cost, not its retail or sale price. This means that you will need documentation (such as supplier invoices) to show your cost per unit when filing a claim.

It's also worth noting that not everything is covered. Amazon won't reimburse for items damaged during transport to the warehouse (such as shipping damage), items past their expiration date, or items damaged by sub-standard labelling.

How to Maximise Your Reimbursement

If Amazon has damaged a portion of our FBA stock, there are still options available to help you recover as much lost revenue as possible.

First, you should closely monitor your inventory reports. You can view detailed adjustment reports in Seller Central, which report any units Amazon has deemed damaged or unsellable. 

Next, keep records of everything. Keep all records of what you shipped to Amazon, including purchase invoices, shipping condition photos, and correspondence with Amazon's fulfillment team. When you can prove that your products were in perfect condition when they left your facility, it is much easier to demonstrate that the damage occurred within Amazon's network.

After collecting all of your information, and you are ready to file your claim, check the damage date carefully. You must file within Amazon's permitted time limit, which is typically 60 days. These claim forms are lengthy and can sometimes be confusing, so it may take you some time to submit them.

With Amazon now paying by cost of manufacture, make sure your invoice reflects the item's actual landed cost, not just the sale price. This is the price you paid your supplier per unit. 

When you file, make sure that you follow up persistently. Amazon receives tens of thousands of reimbursement claims that its internal teams process each day. Keep your case ID handy and follow up regularly to make sure that nothing slips through the cracks. 

If your claim is denied, don't give up right away; there are other easier options available to you. If this all seems like a lot of work, or you lack the time or resources to commit to a thorough, ongoing audit of your accounting, there is another way. Read on to find out how!

Why Many Sellers Lose Out

In reality, the majority of FBA sellers lose thousands of dollars a year simply because they don't realize they can get it back or don’t know exactly where to look.

Amazon doesn’t proactively check for lost or damaged items to issue refunds, so it's your responsibility as a seller to find the discrepancies and file claims. With listing management, running ads, and handling customer service, it's easy to miss.

That’s why professional reimbursement services exist. They handle the auditing, cross-checking, and claim submission process for you to make sure you’re not leaving any money behind.

Partnering with a Reimbursement Specialist

A specialised audit and reimbursement service like Reimbursement Genie focuses on identifying lost, misplaced, and warehouse-damaged inventory inside Amazon’s fulfilment network. We work with your Seller Central account in a secure, read-only capacity, scanning for reimbursement opportunities that most sellers miss.

Our experts are well-versed in the nuances of Amazon's changing policies, including the new manufacturing-cost-based rules, and we can help you file claims correctly and within the allowed timeframe. We even fill out the required forms and handle correspondence with Amazon's customer support, leaving you free from hours of agony and effort.

For active sellers like you, this translates into peace of mind and regained profit, without the additional administrative headache on your to-do list. We can handle everything.

Don’t Let Warehouse Damage Eat Into Your Profits

If you're selling your products through Amazon FBA, items and goods getting damaged in their warehouses is a sure thing, but you losing your profit to it is not.

When you partner with us at Reimbursement Genie, we will handle all the work by conducting a comprehensive, in-depth Amazon reimbursement audit of your inventory. We will identify hidden losses, recover what Amazon owes you, and boost your net profitability.

Ready to find out how much you might be owed for broken inventory from your warehouse? Schedule your free audit today and let our experts recover on your behalf!

Final Thoughts

The Amazon FBA program simplifies online selling, but it also complicates things, particularly when mistakes are not apparent and often go unnoticed. Warehouse damage is one of those behind-the-scenes problems that can nibble away at your profits if you don’t pay attention.

Having someone who knows the policies, understands the proper documentation, and can take action when needed can help you turn those silent losses into recovered money. Don't let warehouse damage go unreimbursed. Contact us today, take control of your reimbursements, and make every unit count!