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What Amazon owes you

Does Amazon Reimburse Customer Damaged FBA Returns?

Customer damaged FBA returns are excluded from reimbursement. What the policy covers, which disposition codes are claimable, and the removal window.

Does Amazon Reimburse Customer Damaged FBA Returns?

$0

reimbursed for returns a customer damaged

2.40 USD

per cubic foot of storage, October to December

30 days

reported window to order a removal, to be confirmed

Key takeaways

  • Amazon does not reimburse returns damaged by a customer: those units go to unfulfillable inventory and stay your loss.
  • The FBA reimbursement policy covers units lost or damaged at an Amazon facility or by a carrier acting for Amazon.
  • The disposition code in the FBA customer returns report separates a claimable unit from one that is not.
  • An unfulfillable unit still pays storage at 2.40 USD per cubic foot from October to December.
  • Sellers report a 30 day window after the unit arrives to request a removal, a figure to confirm with Seller Support.

A unit comes back from a customer, Amazon grades it, and the status in your inventory turns to unfulfillable with a reason that says the customer damaged it. You open a case expecting a reimbursement, because the unit left your inventory sellable and came back worthless. Customer damaged FBA returns are the one category where that case goes nowhere, and knowing why saves you the week you were about to spend on it.

The answer, first

Amazon does not reimburse returns damaged by a customer. Its own staff state it plainly in the Seller Forums. In the thread Do customer induced damage FBA returns ever get compensated back to sellers, an Amazon moderator answers that "Amazon does not accept responsibility and will not reimburse you for returned items that are damaged by a customer", and points to the FBA customer return claims policy. In a second thread, Amazon FBA refuses to pay for damaged returns, another moderator draws the line that matters: the reimbursement policy applies to items "lost or damaged at a facility or by a carrier operated by Amazon or on behalf of Amazon".

That sentence is the whole rule. The question is never how badly the unit is damaged. It is who damaged it, and where.

Why it happens even when the box looked fine

Grading is a judgment made in seconds at the fulfillment center, and the grade is not a report on physical damage. Sellers in both threads describe units that arrived back boxed and intact and were still classified as unsellable, because a returned unit that cannot be sold as new is unsellable by definition, and opened packaging can be enough.

So two different things can produce the same unfulfillable line in your inventory:

  • The customer opened, used or broke the unit. Not reimbursable.
  • The unit was lost, crushed or mishandled by Amazon or its carrier on the way back. Reimbursable, and under a different claim.

Your returns data is where those two separate, and the disposition code is the only thing that tells them apart.

Which returned units never came back?

Check my returns

The fix, step by step

  1. Open the FBA customer returns report and find the order. Read two fields, not one: the disposition (sellable, defective, customer damaged, carrier damaged) and the return reason the customer selected. A mismatch between them is your case: a customer who selected "no longer needed" and a unit graded customer damaged is worth a question.
  2. If the disposition points at Amazon or the carrier, file that claim instead. It is the same money under a rule that covers you, and our guide to FBA reimbursements and which ones Amazon pays sets out what each one needs.
  3. If the unit never physically came back, that is not a damage case at all, it is a missing unit, and it has its own window. Check how long you have to file the claim before it closes. Note that other sellers in these threads report that SAFE-T claims cover seller fulfilled orders rather than FBA returns, which is worth confirming with support for your own case.
  4. If the grade stands, order the removal. Sellers in the threads report a window of 30 days after the returned unit arrives at the fulfillment center to request a removal of defective or customer damaged units, which is the figure to confirm with Seller Support before you rely on it.

What it costs to leave the unit sitting there

An unfulfillable unit is not free storage. It pays the same monthly rate as sellable stock, and from October to December the standard size peak rate is 2.40 USD per cubic foot, as Amazon staff and sellers reconcile in a thread about storage bills multiplying in the fourth quarter. A unit that will never sell again, paying peak storage for three months, is the second loss on the same return. Our article on why FBA inventory goes stranded covers the states that keep inventory billable but unsellable.

How to stop it coming back

  • Read the returns report weekly during peak, not monthly. The removal window runs from the day the unit lands, and a monthly review burns most of it.
  • Watch the return reason codes by ASIN. A product whose returns cluster on "item damaged" or "parts missing" has a packaging problem, and packaging is the one variable here you control.
  • Separate the two numbers in your own reporting: units you lost to customer damage, and units Amazon owes you for. Mixing them makes both invisible, and only one of them is claimable.
  • Keep the returns processing fee timing in the same view, because it lands up to three months after the order and belongs to the same unit.

What we could not confirm

The policy wording above comes from Amazon staff replies in the Seller Forums, quoting the FBA customer return claims policy. The policy page itself sits behind a Seller Central sign in, so the exact current text, the 30 day removal window and the SAFE-T eligibility for FBA returns should be confirmed in your own account before you act on them.

โ€œAmazon does not accept responsibility and will not reimburse you for returned items that are damaged by a customer.โ€

Amazon Seller Forums moderator

Sources

Amara

Hey! I'm Amara

Press at SellerKey.co

โ˜• Espresso. Never a latte macchiato.

I cover Amazon fee and policy changes: what changed, when it applies and where Amazon published it.

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