How to File Amazon FBA Inventory Sourcing and Damage Claims

Lost or damaged inventory at Amazon warehouses is costing you money. Learn how to perform an inventory audit, gather shipping evidence, and file FBA damage c...

Introduction: The Financial Impact of Warehouse Lost and Damaged Stock

For brands utilizing Amazon FBA, fulfillment centers offer unmatched scale and shipping speed. However, storing millions of items across hundreds of physical warehouses leads to inventory losses. Items are damaged by forklifts, misplaced in bin locations, or lost during regional transfer transit. Statistics show that the average FBA seller loses between 1% to 2% of their total inbound volume to warehouse discrepancies.

While Amazon's automated systems reimburse some of these losses, many discrepancies require manual intervention. If you fail to audit your inventory ledger and submit manual damage claims, you are leaving thousands of dollars in refunds on the table. This guide covers how to perform a monthly inventory audit, navigate ledger codes, calculate reimbursement payouts, and submit successful claims.

For streamlined Amazon operations and document preparation, sellers can use our free browser utilities: the Invoice & Label Separator to isolate invoice documents, the Amazon FBA Fee Calculator to audit fulfillment fee deductions, and the Amazon India Label Cropper to standardize shipping labels for thermal printing.

1. Deciphering the Inventory Ledger: Code Verification Guide

The foundation of any successful FBA claim is the Inventory Ledger. To find this report, log into Seller Central and navigate to Reports > Fulfillment > Inventory Ledger. This log tracks every transaction, move, and status change of your stock.

When auditing for lost and damaged stock, filter the transaction logs for these specific adjustments:

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2. How Amazon Calculates Reimbursement Payout Values

When Amazon approves a lost or damaged claim, they do not pay the full retail price. Instead, they calculate the reimbursement value based on several factors to match what you would have received from a sale:

  • Average Selling Price (ASP): The average price the item sold for over the last 90 days, taking discounts and promotions into account.
  • FBA Fees Deduction: Amazon deducts standard referral and fulfillment fees from the ASP, as if the item had sold to a customer.
  • Category Averages: If the item lacks sales history, Amazon uses category average pricing to calculate a default reimbursement value.
  • Submitting Pricing Evidence: If Amazon uses a low category average value, you can appeal and submit invoice receipts to prove the actual item value.

3. Step-by-Step Guide to Filing FBA Damage Claims

  1. Download Ledger Data: Go to Reports > Fulfillment > Inventory Ledger. Export logs for the last 18 months.
  2. Identify Discrepancies: Compare total lost units (Code 11/16) against found units (Code 23). Isolate the net missing quantity.
  3. Verify Wait Period: Ensure that at least 30 days have passed since the reported loss date before filing the case.
  4. Open Seller Support Case: Go to Seller Help > Get Support > Fulfill by Amazon > Investigate Warehouse Discrepancies.
  5. Submit Case Details: Provide the FNSKU, date of loss, transaction IDs from the ledger, and attach manufacturer invoices.
  6. Track Case Progress: Monitor Seller Central and respond promptly if support requests more documentation.

4. Sourcing Invoices: Document Compliance Checklist

To secure FBA damage claim approval, your manufacturer invoice must meet these criteria:

  • Store details match invoice: Sourced buyer name must match your legal entity or storefront name.
  • Complete distributor contact: Supplier name, phone number, address, and email must be clearly visible.
  • Quantities match exactly: Sourced units must match or exceed the count of the missing inventory.
  • Zero-balance: Show payment confirmation or transactional wire receipts.

5. Response Templates for Denied Damage Cases

If Seller Support denies your damage claim citing automated checks, use these templates to appeal:

Template: Appeal for Warehouse Damaged Inventory Dear Seller Support Team, I am appealing the denial of Case ID [Case ID] regarding lost/damaged stock for ASIN [ASIN]. According to our Inventory Ledger reports, [Number] units of FNSKU [FNSKU] were adjusted under transaction code [11 / 16] on [Date]. These units have remained unreconciled for more than 30 days, and no matching 'Found' transactions (Code 23) exist. We have attached our manufacturer invoices proving ownership and sourcing details. Please process the reimbursement for these missing units. Sincerely, [Store Name]

6. FAQ: FBA Inventory Damage Claims

  • Q: How often should I audit my inventory ledger? Performing audits monthly is recommended to identify lost stock and file claims before the timeline windows expire.
  • Q: What happens if Amazon finds misplaced inventory after paying the reimbursement? Amazon will add the found units back to your active stock and reverse the reimbursement amount from your seller balance.
  • Q: Can I claim items that were damaged by customers? No, Amazon does not reimburse for customer-damaged returns unless you can prove return fraud or shipping carrier damage.
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Frequently Asked Questions

  • What is an Amazon FBA inventory damage claim?

    An Amazon FBA inventory damage claim is a request you file with Amazon to seek reimbursement for products that were lost or damaged while stored in or shipped by Amazon's fulfillment centers. This process helps sellers recover the cost of inventory that was damaged due to Amazon's handling or lost during transit within their network.

  • How do I perform an inventory audit to identify lost or damaged items?

    To perform an inventory audit, log into your Amazon Seller Central account, navigate to 'Reports' > 'Fulfillment' > 'Inventory Adjustments', and download a report for the relevant date range. Look for adjustments labeled as 'Damaged', 'Lost', or 'Found' to identify discrepancies. Cross-reference this data with your own records to spot items that need claims.

  • What evidence do I need to gather for a successful FBA damage claim?

    For a successful claim, you need to gather shipping evidence such as the original shipment ID, carrier tracking numbers, proof of delivery (POD), and invoices from your supplier. Also, include photos of the damaged items (if applicable) and screenshots from Seller Central showing the inventory adjustment details. This documentation proves the items were in good condition when shipped.

  • How do I file an FBA damage claim on Amazon Seller Central?

    To file a claim, go to 'Help' in Seller Central, search for 'FBA inventory reimbursement', and select the option to 'Open a case'. Choose 'Fulfillment by Amazon' as the issue type, then 'Inventory' > 'Damaged or Lost Inventory'. Provide the required details, such as the shipment ID and ASINs, and attach your evidence. Submit the case and monitor it under 'Case Log'.

  • How long does Amazon take to process an FBA damage claim?

    Amazon typically processes FBA damage claims within 5 to 10 business days, but it can take longer if the claim is complex or requires additional investigation. You can check the status in your 'Case Log' and follow up if needed. To speed things up, ensure all evidence is clear and complete when you submit the claim.