If you're an Amazon FBA seller, lost inventory can cost you 1%–3% of your annual revenue. Items can go missing during inbound shipments, warehouse handling, customer returns, or removal orders. While Amazon offers reimbursements, navigating their policies and filing claims can be frustrating. Here's what you need to know:

• Common Issues: Spotting discrepancies in inventory reports, claims rejected due to insufficient evidence, and delays in claim processing.

• Amazon's Policies: Deadlines range from 60 to 270 days depending on the claim type. Reimbursements are based on sourcing costs, not selling prices, with a $5,000 cap per unit.

• Solutions:

  • Regularly audit inventory reports to catch errors early.

  • Prepare detailed documentation (invoices, shipment IDs, etc.) for claims.

  • Follow up on denied claims with additional evidence.

• Prevent Losses: Weekly audits and automation tools can help track issues. For larger sellers, outsourcing claims to reimbursement services may save time.

Lost inventory claims protect your profit margins, but the process demands diligence and organization. Missing deadlines means permanently losing potential reimbursements.

How To Request Reimbursements on Amazon (Get Paid For Lost Inventory)

Common Problems with Lost Inventory Claims

Amazon FBA Lost Inventory Claim Filing Deadlines by Category

Even when you're sure Amazon owes you money, navigating their reimbursement process can be a headache. Sellers often face three major challenges that complicate recovering lost revenue.

Problem 1: Spotting Discrepancies in Inventory Reports

Amazon doesn’t make it easy to track down inventory issues. Instead of providing a single, clear report, sellers are left juggling multiple documents - like the Inventory Ledger, Inventory Adjustments, Received Inventory, and Shipping Queue - to identify where things went wrong.

For example, inbound shortages often emerge when you compare your shipment plan to what Amazon says they received. Frustratingly, Amazon might initially mark a shipment as "received in full" but later lower the count, leaving you to catch the discrepancy.

Warehouse losses are even harder to track. Units that disappear during transfers between fulfillment centers or get misplaced might show up in the Inventory Adjustments report under codes like "lost" or "misplaced." However, Amazon’s system doesn’t always credit you automatically. Then there’s the "lost and found" issue: Amazon might reimburse you for lost items but later reverse the reimbursement if they locate the inventory. Unfortunately, this often leaves you with expired or unsellable stock - and possibly disposal fees.

Problem 2: Claims Rejected for Lack of Evidence

Amazon’s move to the sourcing cost model in March 2025 changed the game for documentation. Now, you must prove the actual manufacturing or acquisition cost of your products - not the selling price. Without supplier invoices that include purchase dates, product names matching the missing units, and exact quantities, claims are rejected outright. Generic claims won’t cut it.

To succeed, you need shipment IDs, dates, precise quantities, and supporting documents like carrier tracking or a Bill of Lading that shows the piece count and weight.

Sellers also face automatic rejections for claims on inventory marked as "in transfer" between warehouses. Amazon denies these because the items might still be moving through their system. Filing duplicate claims is another pitfall - if Amazon’s Inventory Discrepancy Report already processed a reimbursement, filing for the same event manually can trigger an automatic rejection and even flag your account for potential abuse.

Problem 3: Slow Processing or No Response from Amazon

Even when you’ve done everything right, delays in claim processing can make the process even more frustrating. Some claims sit unresolved for weeks, while others are denied without clear explanations. The 60-day filing window for warehouse losses and customer return issues makes these delays especially problematic. Following up consistently is key. Many sellers find that resubmitting the same claim with the same evidence eventually gets it approved - but it’s easy to lose patience after the first denial.

Timing is another issue. Filing claims too early or too late can lead to rejections. For example:

• File a warehouse loss claim before 30 days, and it’ll be rejected.

• File a removal order claim before the 15-day wait period, and it’s denied.

• Wait longer than 75 days for that same removal order claim, and your window closes completely.

Keeping track of deadlines is critical to avoid losing your chance at reimbursement.

How to Solve Lost Inventory Claim Problems

Now that you've identified common claim issues, it’s time to tackle them with these practical solutions.

Solution 1: Reconciling Inventory Reports

Start by comparing multiple Seller Central reports to identify discrepancies. Focus on inbound shipments first: pull your shipment plan and cross-check it with the "Inbound Shipments" report to ensure Amazon received everything you sent. For warehouse-related losses, download both the "Inventory Ledger" and "Inventory Adjustments" reports. Look for reason codes like "misplaced", "lost", or "warehouse damage" to spot missing units that Amazon hasn’t reimbursed.

The "Shipping Queue" report is another key tool. Check the "Discrepancy" column - negative numbers (e.g., -2) mean units are missing, while positive numbers (e.g., +5) indicate extra units. Confirm whether Amazon has resolved the issue by reviewing the "Units Reimbursed" or "Units Reconciled" status. For customer returns, wait the full 45-day period after issuing a refund. If the item doesn’t return to inventory after this window, it’s time to file a claim.

Make it a habit to audit short-window claims weekly and batch-process long-window claims monthly. Regular audits ensure you meet filing deadlines and recover lost revenue quickly, a task often handled by Amazon account management services. Once you identify discrepancies, document every detail carefully to support your claim.

Solution 2: Building Strong Claim Documentation

Strong documentation is essential for successful claims. Include supplier invoices with purchase dates, matching product names, and quantities. For LTL/FTL shipments, attach the Bill of Lading (BOL). For removal claims, add relevant Removal Order details. Remember, pro-forma invoices won’t work - they don’t prove a completed purchase.

Submit your documents in acceptable formats like PDFs, JPGs, PNGs, or TIFFs. Avoid Excel or Word files, as Amazon rejects them outright. If necessary, you can obscure the price on invoices, but all other details must remain visible. For removal order claims, gather the Removal Order ID, FNSKU, LPN numbers (the barcoded stickers on packaging), and provide six-sided photos if labels are missing or damaged.

Keep digital copies of all documentation. Services like GETIDA report recovering over 90% of claims, largely due to maintaining detailed records from the start.

Solution 3: Escalating Delayed or Denied Claims

If your claim is denied or delayed, escalate it with a clear strategy. Don’t settle for the first rejection. Resubmit your claim with a more detailed explanation and additional evidence. Many sellers find success on the second or third attempt. Avoid generic messages - be specific. Include Shipment IDs, dates, quantities, and ASINs. Reference the exact Amazon policy that supports your claim.

If the second attempt fails, request a supervisor review directly through the case message thread. Check your cases daily and respond promptly to any requests for additional information - Amazon may close cases if you delay. Persistence often pays off; services report that 63% of previously denied claims are approved upon appeal.

To streamline the process, group smaller claims together. This reduces administrative work and speeds up processing. When escalating, structure your message clearly: state whether the issue involves lost or damaged inventory, provide shipment details, specify your expectations, and attach all supporting documentation. With Amazon’s 60-day filing window for most categories, handling reimbursements weekly instead of quarterly helps you stay ahead of deadlines.

Working with Amazon's Updated Policies and Tools

Amazon made a major change to its reimbursement model on March 31, 2025, moving to a sourcing cost-based system. Now, sellers can only recover losses based on their actual manufacturing or sourcing costs. This applies to all types of loss events - shipment issues, fulfillment center mistakes, or damages from removal orders. The average recovery per unit has dropped significantly, from $18.50 to $6.20, and total reimbursements have decreased by 50% to 75%. To adapt, sellers need to rethink their filing strategies and stay on top of these updated policies or work with account management services to maximize recovery.

How the Sourcing Cost Reimbursement Model Works

To ensure accurate reimbursements, you need to enter your actual manufacturing costs in the "Manage Your Sourcing Cost" section of the Inventory Defect & Reimbursement (IDR) portal. If you skip this step, Amazon will estimate your costs based on similar products - and these estimates often undervalue your inventory. When entering costs, stick to direct expenses like production costs and avoid adding secondary costs like shipping, handling, or customs duties.

Amazon updates its cost estimates periodically, giving sellers a short window to review and challenge them. To stay ahead, check this page weekly. Keep digital copies of your supplier invoices in accepted formats like PDF, JPG, PNG, or TIFF, as Amazon might ask for them within 60 days. Note that Excel and Word files won’t be accepted. Also, remember there’s a $5,000 reimbursement cap per unit, so if you sell high-value items, it’s worth looking into third-party insurance. Now, let’s look at how to handle claims that fall outside the IDR portal.

Filing Claims Outside the IDR Portal

While the IDR portal covers warehouse damage and customer return defects, it doesn’t handle everything. For issues like inbound shipment shortages, removal order errors, or warehouse disposals, you’ll need to file manual cases through the "Get Help" or "Contact Us" sections in Seller Central.

For inbound shipment shortages, compare the "quantity shipped" with the "quantity received" in your Received Inventory report every week. These claims must be filed within 60 days to meet Amazon’s updated deadlines. Removal order claims have different timelines - file for items lost in transit between 15 and 75 days from the shipment creation date, while other removal claims must be submitted within 60 days of delivery.

When filing manual cases, be thorough. Include details like Shipment IDs, Removal Order IDs, FNSKUs, tracking numbers, and photos of damaged labels. With the tighter 60-day filing window, it’s no longer practical to rely on quarterly audits. Many sellers have switched to weekly audits and report catching claims they would have missed under the old system.

Preventing Inventory Losses and Improving Recovery

Resolving claims is important, but stopping inventory losses before they happen is even better. Catching discrepancies early and filing claims promptly can save you from unnecessary headaches. Amazon's strict timelines, like the 60-day limit for warehouse-related losses, mean quarterly audits just don’t cut it anymore. These days, successful sellers are conducting weekly audits of critical reports to stay ahead.

Using Inventory Tracking and Automation Tools

Automation tools can be a lifesaver when it comes to tracking inventory issues. They handle the heavy lifting by continuously scanning your account and cross-checking data. For example, they can match shipped quantities with what Amazon says it received or flag items stuck in inter-warehouse transfers for over 30 days. Without these tools, errors can quietly drain your revenue.

However, while these tools can detect issues and prepare evidence - like shipment IDs, dates, and quantities - Amazon doesn’t allow automated claim filing via API. That part still requires a human touch. Spending just 30–60 minutes a week to review and manually submit claims through Seller Central can significantly improve your approval rates. If weekly audits feel overwhelming, there are other options.

Working with FBA Reimbursement Services

For sellers who find weekly audits too time-consuming, outsourcing to experts can make a big difference. Specialized services, like eStore Factory, offer a mix of automation and manual processes to simplify reconciliation. These agencies keep up with Amazon’s policy changes and ensure your claims are filed correctly. Plus, they usually work on a commission basis - charging 10% to 25% of recovered funds - so you only pay when they recover money for you.

These professionals are also skilled at escalating stalled claims and providing Amazon with exactly the evidence it needs. For sellers generating over $1 million in revenue, managing manual recovery in-house often costs more in time and resources than outsourcing. In those cases, hiring a reimbursement service can be a smart move to maintain efficiency as your business grows.

Conclusion and Key Takeaways

Lost inventory claims are a critical safeguard for protecting your profit margins. Amazon's automated systems often overlook discrepancies, especially with inbound shipments and warehouse transfers. Without tracking these losses, sellers risk leaving 1%–3% of their annual revenue unclaimed. For a seller generating $1 million in revenue, that could mean missing out on $10,000 to $30,000 annually.

The recent shift to a 60-day filing window now requires weekly audits instead of quarterly ones. As one seller, Siddharth Sharma, shared:

"I used to audit reimbursements once a quarter... After the policy change, I missed over $4,000 in claims in the first two months because I did not adjust my schedule. Now I audit weekly. There is no other option." - Siddharth Sharma, Author

This highlights the importance of staying consistent and proactive in managing claims.

Key Points Recap

• Reconcile Amazon seller reports regularly. Compare the Inventory Adjustments report with the Reimbursements report to identify discrepancies Amazon might miss. Pay special attention to areas like warehouse losses and fee overcharges, which often have shorter claim windows.

• Prepare detailed documentation for every claim. Include invoices, carrier tracking details, and specific Seller Central reports that show missing units. Providing thorough evidence can increase approval rates from about 40% to 85%, while vague claims are more likely to be denied.

• Follow up on denied claims with extra evidence. Many claims initially denied for "insufficient documentation" are later approved - up to 70% - when sellers supply the missing details. If a claim is rejected, reopen it with stronger proof.

For sellers generating over $1 million in revenue, managing lost inventory claims can be a time-consuming task. Whether you handle the process internally or rely on a service like eStore Factory, consistency is essential. Missing the 60-day window means the funds are permanently lost, with no chance to appeal. Stay diligent to make the most of your claims process.

FAQs

Which inventory reports should I check first to find missing FBA units?

To track down missing FBA units, begin by examining reports that shed light on inventory discrepancies and shipment problems. Two essential reports to focus on are:

• Inventory Discrepancy Reports: These highlight inconsistencies in your stock levels, helping you pinpoint where items might have gone missing.

• Shipment Reconciliation Reports: These detail issues that may have occurred during the shipping or receiving process.

By carefully analyzing these reports, you can identify potential problem areas and work to resolve inventory issues more effectively.

What documents does Amazon require to approve a lost inventory claim under sourcing cost?

Amazon usually asks for a few key documents to approve a lost inventory claim related to sourcing costs. These include:

• Product SKU: The unique identifier for the item in question.

• Proof of Ownership: Documentation showing that you own the product, such as invoices or receipts.

• Detailed Inventory Records: Comprehensive records that track your inventory levels and movements.

Make sure these documents are accurate and current to prevent any delays during the claim process.

When should I file a claim to avoid it being rejected for being too early or too late?

You have an 18-month window to file your claim with Amazon, starting from the date the inventory was lost or damaged. Filing outside this timeframe - whether too early or late - may lead to your claim being rejected. Make sure your submission is within this period to avoid issues.

Related Blog Posts

• 5 Common FBA Reimbursement Issues and Solutions

• FBA Damaged Inventory Claims: Step-by-Step Guide

• FBA Shipment Discrepancy Claims: Step-by-Step Guide

• 7 Reasons Amazon Rejects FBA Claims