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Claim Reimbursement for Losses Caused by Amazon CSBA Reps

UPDATED: Claim Reimbursement for Losses Caused by Amazon

UPDATE 07/28/2023: Attention sellers, there might be money owed to you for eligible returns reimbursements.

There are specific Amazon policies regarding customer returns and refunds tied to those returns. If a return does not meet policy guidelines, you as the seller are eligible for a reversal of the refund Amazon charged back to your account.

Applicable policies include Amazon reps mishandling your customer returns and refunds or customers duping you for some money in return scams. More on that below. While the below feature article talks specifically about seller-fulfilled items, these returns policies apply to all returns Amazon handles.

Assuming that Amazon automatically issues reimbursements to your seller account when errors occur would be a mistake. đźš©

In reality, the responsibility lies with you to identify any errors and initiate the proper claims. Unfortunately, many sellers face the challenge of lacking the time to thoroughly investigate these issues, let alone keep detailed records of them. 

Neglecting to closely monitor your Seller Central account could mean missing out on the money Amazon owes you. If you’re a large seller or an aggregator, chances are, you could be losing thousands of dollars every year due to these unclaimed reimbursements, which can hurt your bottom line.

There’s a variety of audit and recovery services like Seller Investigators (SI) available to aid sellers in claiming Amazon reimbursements for overcharges and lost, missing, or damaged inventory. These companies use an Amazon-compliant and transparent reimbursement process to make claims and ensure a high success rate.

However, until recently, there was no service that offered reimbursement for the reversal of customer refunds. 

Seller Investigators just launched a service that helps sellers to do just that. It is powered by Proprietary Refund Search Engine and with dedicated recovery specialists who keep files and follow up on refund reimbursement claims.

SI also announced an Orders and Returns Tracking feature specifically for auditing and recovering potential losses incurred due to Amazon issuing refunds for products that customers haven’t returned, acceptance of incorrect or damaged items for returns, and situations where refunds are credited after the designated return period has elapsed.

The claims window starts 60 days after the return is filed and as far as 18 months. 

For many sellers, these issues are the hardest to track and prove. That’s because Amazon may automatically refund customers despite the fraudulent nature of their return requests and the amount of paperwork involved to appeal Amazon’s decision can be offputting in exchange for the funds recovered.
Engaging with an experienced audit and recovery team who knows Amazon’s reimbursement policy, will allow sellers to stand a better chance of getting reimbursed.

In a time when profits are being squeezed from all sides and Amazon fees are at an all-time high, recovery of every cent possible is crucial. Returns reimbursements present one more way to do just that.

This announcement is for US sellers who participate and pay for Customer Service By Amazon (CSBA), a service where Amazon handles customer service on the seller’s behalf for their seller-fulfilled orders.

Sellers who use the CSBA program are now eligible for Sellers Assurance for eCommerce Transactions (SAFE-T) claims. This allows sellers to appeal unjustified refunds that Amazon reps issued to customers.

Here’s a list of scenarios where you may be eligible for reimbursement:

  • The customer said they did not receive the item, but you have proof.
  • The customer sent back an item in poor condition or an item with parts missing.
  • The customer returned an item that was not what you sent.
  • The customer requested a free replacement via the Online Return Center. You shipped a replacement unit, but the customer sent back an incorrect item or the original item was not in sellable condition.
  • Amazon issued a return for an item that was already outside of the return window when the customer asked to return it.
  • The return reason is marked as “Customer Fault” in Return reason codes for prepaid returns.
  • Amazon determines that the customer repeatedly abused Amazon’s return or refund policy and the seller was not at fault. File a reimbursement request with evidence of how the customer abused Amazon’s refund or return policy.
  • Amazon determines that a refund to a customer was due to an Amazon error and you were not at fault. File a reimbursement claim with evidence of Amazon’s error.

Once submitted, Amazon will review your reimbursement request. A decision will be made based on Amazon’s CSBA refund reimbursement policy.

Sellers Fight Tooth and Nail to Get Reimbursed

It’s no secret that Amazon’s top priority is to provide buyers with the best customer service possible. When buyers return items to sellers, Amazon ensures they get an automated refund.

The problem is that some scammers can take advantage of refunds. These dishonest customers can collect refunds before sellers know what they returned. Some scammers have even bought expensive items from Amazon and request refunds while returning items that are far cheaper or not what the seller sent. Some have also returned products in used or damaged condition.

Of course, the above scenarios are eligible for reimbursement, but Amazon does not make it easy for sellers to get reimbursed. Many appeals are denied, no matter how much proof sellers provide, based on the comments posted to the news announcement page.

Even if sellers do get reimbursed, they may not get full reimbursements but may get some lesser amount that is sometimes not enough to even cover the return shipping cost that they are obligated to pay. One seller reported also that when they filed 3 claims for new books that were returned in “torn and creased” condition, Amazon only reimbursed them 15% of the total price.

No wonder some sellers resorted to billing fraudulent customers directly and referring them to collections if they don’t pay. However, others wouldn’t suggest this, as suing customers over disputes is against Amazon’s Terms of Service.

Bottom line is, sellers may have to fight tooth and nail to get reimbursed for Amazon-initiated returns. And in order to ensure they recover a larger amount of money for a single order (over $5,000) Amazon recommends they buy third-party insurance, which means another expense that will eat further into profits.

Check out Customer Service by Amazon Refund Reimbursement Policy to learn more.

Related: Amazon Overhauls Its A-to-Z Guarantee Policies To Streamline Damages Claims

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