Amazon Lost Inventory Reimbursement: A 2026 Guide
Contents
TLDR
FBA sellers lose 1–3% of annual revenue to unreimbursed inventory errors. For a business generating $2 million in FBA sales, that's $20,000–$60,000 left on the table.
The reason: Amazon's 60-day claim window.
Once inventory is marked lost or damaged, you have 60 days to file a manual claim. Miss that deadline, and the money is unrecoverable.
Without routine audits, these claims slip through. Lost units, warehouse damage, and customer return discrepancies accumulate silently across thousands of transactions.
This guide shows you how to build an audit system that:
- Catches every eligible claim
- Scales with your business
- Turns reimbursement recovery into a reliable revenue stream
What qualifies for Amazon lost inventory reimbursement
Amazon reimburses sellers for specific types of inventory losses, but the rules and documentation requirements are strict. The main qualifying events include:
- Inventory lost in Amazon’s warehouse
- Inventory damaged in transit or at the fulfillment center
- Customer returns not received or processed correctly
- Inbound shipments marked as delivered but never stocked
- Fee overcharges or misapplied fees
To file a claim, Amazon requires clear documentation. It includes shipment records, supplier invoices, photos of damaged items, and communication logs.
Many sellers miss claims because they do not collect or centralize this evidence, or because they are unclear on which events qualify.
Top reasons claims get missed:
- Not checking all relevant Amazon reports (Inventory Adjustment, Reimbursement, Settlement)
- Scattered documentation across emails, folders, and systems
- Manual oversight or lack of a routine audit process
- Unclear on Amazon’s evolving policies
Example
A shipment marked “delivered” but never stocked often goes unnoticed if not cross-checked against inventory reports.
Missing a claim is not merely oversight; it underscores the real cost to your business, especially as you scale.
The cost of missed audits: Pitfalls, deadlines, and scaling challenges
Manual audits are time-consuming and error-prone.
- A typical manual audit takes 4–6 hours per account per month
- As your business grows, error rates rise with more SKUs or accounts
- The window accelerates risk: one missed month can mean thousands unrecoverable
Managing two or more Amazon accounts or regions multiplies the audit burden. Spreadsheets and memory cannot keep up.
Common pitfalls include:
|
Pitfall |
Impact |
|
Missed deadlines |
Lost reimbursement revenue |
|
Scattered documentation |
Incomplete claims, rejections |
|
Manual tracking |
High error rates, time drain |
|
No audit owner |
Claims fall through the cracks |
Table: Common audit pitfalls and their impact
Centralized dashboards and automated reconciliation, like those in Webgility, cut audit time and reduce errors, especially when scaling.
To avoid these pitfalls, you need a systematic approach.
Suggested watch:
Basics of Reconciliation and Webgility Desktop - Customer Webinar Series
Building your Amazon reimbursement audit system: A step-by-step method
Follow these steps to build a reliable audit workflow:
- Download Inventory Adjustment and Reimbursement reports from Amazon Seller Central monthly
- Review for discrepancies: lost, damaged, or missing items
- Centralize findings in a tracker or dashboard (sample columns: SKU, event type, date, evidence, claim status)
- Standardize supporting documentation (screenshots, PDFs, shipment records, etc.)
- Assign team roles for review, filing, and follow-up
Sample tracker columns:
- SKU/ASIN
- Event type (lost, damaged, return, fee)
- Date reported
- Evidence collected
- Claim status (not filed, filed, approved, denied)
- Notes
Sellers often use platforms like Webgility to centralize order and inventory data, making it easier to match discrepancies and organize evidence for claims. Integrated dashboards help teams collaborate and avoid duplicate work.
With your audit system in place, the next step is to refine your tracking and documentation for maximum efficiency.
Best practices for tracking, documentation, and claim submission
To maximize claim success:
- Collect evidence immediately (screenshots, PDFs, shipment records)
- Track claim status (dates, case IDs, outcomes, follow-ups)
- Set internal deadlines to beat Amazon’s 60-day window (aim for day 45)
- Review claims regularly and follow up on pending cases
Claim tracking template:
- Claim date
- Case ID
- Documentation attached
- Status (pending, approved, denied)
- Follow-up date
Integrated solutions can timestamp and store evidence, and track claim status in sync with your accounting system, reducing manual overhead.
As your business grows, maintaining discipline becomes harder. This is where automation and real-time visibility come in.
Suggested Read: How to Sync Inventory With Webgility
Scaling your audit system: Automation and real-time visibility
Manual audits break down as order volume, SKUs, or accounts increase. Automation is the only way to sustain accurate, timely audits at scale.
Key benefits of automation and integration:
- Automated report pulls and scheduled reconciliations
- Real-time flagging of discrepancies and pending claims
- Dashboard visibility across multiple accounts or regions
- Direct connection to accounting for full financial visibility
How Webgility helps
- Real-time inventory sync across Amazon, ecommerce, and accounting platforms
- Automated Amazon payout reconciliation and claim tracking
- Multi-account support in a single dashboard
- Save up to 90% of time on reconciliation and month-end close
- Handle 10x more orders with the same team
Customer example:
Epic Mens saved 80+ hours a week and scaled order volume by 42% after centralizing audits with Webgility.
Automation surfaces discrepancies quickly, so you can act before the window closes. While no tool guarantees reimbursement, integrated systems make it possible to recover more with less effort.
Suggested Watch: Setting Up Amazon with Webgility Online- Customer Webinar Series
Final thoughts: Make audit discipline your Amazon advantage
The urgency of Amazon’s shorter window makes routine, systematic audits essential. Moving from manual to automated, integrated workflows maximizes recovered revenue and reduces stress as you scale.
As you grow, invest in systems that keep you ahead of operational risk.
Integrated platforms like Webgility support scalable, stress-free Amazon operations so you can focus on growth, not spreadsheets.
Ready to recover more and stress less? Learn how Webgility can help. Get a demo.
FAQs
What types of inventory losses does Amazon reimburse?
Amazon reimburses for lost or damaged inventory in their fulfillment centers, customer returns not processed correctly, and certain shipment discrepancies. Each claim type requires specific documentation.
How quickly are Amazon lost inventory claims processed?
Most claims are resolved within 1–2 weeks, but complex cases may take up to 30 days. Timely submission and complete documentation help speed up the process.
Can automation tools submit claims directly to Amazon?
Automation tools can identify discrepancies and organize evidence, but you must submit claims through Amazon Seller Central. Tools streamline the process but do not replace manual submission.
What happens if I miss the 60-day claim window?
If you do not file within 60 days of the loss event, you forfeit the right to reimbursement. There are no exceptions to this deadline.
David Seth is an Accountant Consultant at Webgility. He is passionate about empowering business owners through his accounting and QuickBooks Online expertise. His vision to transform accountants and bookkeepers into Holistic Accountants continues to grow.