LESLEY HENSELL

THE SELLER’S GUIDE TO COLLECTING ALL

YOUR MONEY FROM AMAZON FBA

Riverbend Consulting™
Amazon. Solved.™
A Personal Note

Before co-founding Riverbend Consulting, I spent years being an

Amazon seller. I still maintain an active seller account today.
It’s exhilarating to be an entrepreneur. It’s exhausting too. Yes, it’s
definitely worth the pain, but Amazon sure knows how to pile on
the problems. It’s heartbreaking to see how a person’s life can be
marred by Amazon mistakes. I saw real people working real hard get
bashed, then banished. It was this unilateral nonsense from Ama-
Lesley Hensell zon that kicked off my passion to solve seller problems and co-found
co-founder Riverbend Consulting. I knew sellers were facing endless frustration
Riverbend Consulting and dead-ends.
Why do I share this? Because every problem faced by every seller
becomes our problem. It becomes personal. That’s how we’ve built
our company. We don’t pursue nameless, faceless transactions.
We help We help successful sellers solve tough problems and achieve their
successful dreams. We know their names. We’re invested in their businesses
sellers solve and lives.
problems and
achieve their To me, that’s the difference with our company. So, whether you
dreams. We need help with reimbursements, or an appeal to reactivate your
know their ASINs or account, we’re the go-to go-getters. You get a team vested
names. We’re in your success.
invested in their I’m proud of our track record, our people and our clients.
businesses
Thank you always for considering Riverbend Consulting. We’re
and lives.
here to help you.

To your success,

Lesley Hensell

Let’s stay connected! LinkedIn

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 Table of
Table of
contents
contents
2 | Personal Note from the Author

4 | Why not get your money back from Amazon?

5 | 10 Amazon FBA profit killers

6 | Profit killer #1 Inventory from inbound FBA shipments is not

received

7| Profit killer #2 A
 mazon unfairly denies claims for
reimbursement

8| Profit killer #3 A
 mazon loses and damages inventory

9| Profit killer #4 A
 mazon reimburses the seller for inventory
claims – but not enough

10 | Profit killer #5 A
 mazon messes up customer returns

11 | Profit killer #6 A
 mazon mismeasures an item and charges
more fees

12 | Profit killer #7 A
 mazon charges fees for the wrong category

13 | Profit killer #8 A
 mazon destroys a seller’s inventory without
permission

14 | Profit killer #9 A
 mazon grants a reimbursement, but never
gives the seller the cash

14 | Profit killer #10 A

 mazon fails to fulfill a removal order

15 | The real bottom line?

16 | Connect with us
 Amazon does
recognize
that it makes
FBA errors.
WHY NOT GET YOUR MONEY BACK FROM AMAZON?
It’s hard to argue the power of FBA. The
Fulfillment by Amazon (FBA) program en-
ables sellers of all sizes to move large vol-
umes of merchandise via Amazon’s pow-
erful distribution and delivery network.
But with any exciting opportunity, there
are potential downfalls. In the case of
FBA, mistakes by Amazon’s fulfillment
centers (FCs) can eat up a seller’s bottom
line. In fact, we estimate that an average
seller sees negative impacts between 5
and 10 percent of their inventory at the
hands of FBA.
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Amazon does recognize that it makes
FBA errors. It even offers “automatic
reimbursements.” Because of this, many
sellers are lulled into a false sense of
security and believe that Amazon has
their backs. That attitude, however, is
costly. These reimbursements represent
just a sliver of Amazon’s FBA errors.
Fortunately, with diligence and hard
work, sellers can minimize these unjust
costs and ensure Amazon pays back
every penny it owes. Keep reading to find
out more.
 
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 PROFIT-KILLER #1
Inventory from inbound FBA shipments is not received
This is far-and-away the most significant
profit-killer for Amazon FBA sellers. A
business sends hundreds or thousands of units
to Amazon fulfillment centers (FCs). Amazon
then reports that some or all of the inventory
never arrived.
Most sellers rely on Amazon Partner Carriers
to ship inventory to the Amazon FCs. Sellers
create shipments via Seller Central, and their
inbound shipments are then handed off to
UPS or a carrier that can handle pallets and
truckloads. These carriers provide a tracking
number, proving that the seller gave them the
inbound shipment.
The shipments arrive at Amazon FCs, where
they are signed for at the dock. Amazon ware-
house workers receive the items. These individ-
uals scan either case packs or individual units
of inventory, depending upon the shipment type.
Ideally, the number of units scanned matches
the shipment’s original contents perfectly.
Alas, a significant portion of shipments comes
up short at the Amazon warehouse. Amazon
declares that the seller didn’t send all of the
units. And suddenly, that shipment of 300 sell-
able items is only 265 sellable items. Amazon
expects the seller to eat the remaining 35 units
– even though they are somewhere in the FC.
It’s not beyond
reason to estimate
that Amazon sellers
lose 5 percent to
10 percent of their
inventory at the hands
of FBA—and aren’t
being reimbursed for
such losses.
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In some cases, unreceived inventory can add up
to just a few dollars. But there are circumstanc-
es where these errors can cost a large seller
hundreds of thousands of dollars. Over time, it
really adds up.
So, what’s a seller to do? Once Amazon closes a
shipment, saying it has received all items in the
shipment, the seller can open a case via Seller
Central. Amazon then investigates the case and
decides what to do next. This might be:
• Reimbursement to the seller, but this
requires proof of purchase (invoices) or
proof of shipping (packing slips)
• Reimbursement – but not enough – to
the seller (more on this later)
• Requests for even more documentation
from the seller
• A denial of reimbursement
If Amazon denies reimbursement, sellers can
re-open the case, provide additional documenta-
tion, and ask for re-consideration.
PRO TIP: Maintain a database of
invoices and shipping documents for
all shipments to Amazon FCs. Share
these with your reimbursements
team – whether internal or external –
so they have needed details at their
fingertips.
  
 PROFIT-KILLER #2 7 QUESTIONS FOR EVERY
Amazon unfairly denies claims for AMAZON FBA SELLER
reimbursement
“Investigation complete.”
Those are two of the most frustrating words 1. Do you log, track and document
that pop up in a Seller Central account. every shipment and every product
When Amazon doesn’t properly receive inventory sent to FBA?
– or loses, damages or otherwise mishandles
inventory – sellers can ask for an investigation. 2. Do you have a way to get
The words “investigation complete” can be reimbursed even when Amazon
Amazon’s dismissive way of saying, “we’re right, says, “investigation complete”?
and you’re wrong.” In addition, for reasons un-
known, Amazon will simply deny the claim, with
no explanation. 3. Are you tracking shipments and
potential reimbursements for up
Many times, however, mistakes were clearly made to 18 months?
at the Amazon FC. For example, Amazon will
show that it accepted boxes at the dock. But
then, it will claim the boxes were all empty – de- 4. How do you know Amazon is
spite bills of lading that clearly state each box using the correct dimensions and
weighed 20 to 50 pounds. Sometimes, Amazon properly charging you for storage
eventually corrects the mistake. But what hap- fees?
pens when Amazon FBA simply refuses to reim-
burse the seller for lost items? 5. How much time does it take to
That’s where robust appeals come into play. check that Amazon is estimating
Sellers must fight back to get reimbursed. This and paying you the right amount
usually starts with a case sent via Seller Central, at the right time?
asking the FBA team to investigate. If that fails,
another step is to request a phone call from 6. What fee percentage is Amazon
Amazon’s Captive team, which can chase down charging you, and is it the right
the issue. category?
If Amazon still refuses to acknowledge their
mistake, it’s time for executive escalations. 7. Have you considered the cost
These are succinct, fact-filled emails sent to key of managing reimbursements
teams or executives inside of Amazon. on your own vs. using a service
provider?
PRO TIP: Choose a reimbursements
service with robust appeal capabilities.
They can help escalate high-value
reimbursements claims to the right
Amazon teams and increase your
chances of winning.

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 PROFIT-KILLER #3:
Amazon loses and damages inventory
Lost and damaged inventory can happen in
countless ways. It’s not a simplification to say
that a dropped bottle can roll under a shelf at
the FC – and remain there for months or years.
Items are also mis-filed, placed in the wrong bin,
or put on the wrong truck for transshipment be-
tween warehouses. (Personal story: I once had
an item that I had not sold in two years pop up in
my available inventory. It was “found” in the FBA
warehouse.)
When it comes to “finding” items and filing
claims for lost and damaged inventory, Amazon
definitely has an advantage over sellers. There
are several reports in Seller Central that must be
parsed, compared and analyzed to determine
which inventory items are truly missing. It’s not a
task for the impatient, nor for the time-pressed.
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There is also risk involved. If reports are not un-
derstood and properly interpreted, not all claims
will be filed. Worse, a lack of understanding can
lead to inaccurate claims by a seller – which can
result in sanctions by Amazon or even the loss
of selling privileges.
It behooves sellers to employ a reliable reim-
bursements service to ensure they uncover ev-
ery inventory shortage that occurs in their ac-
count over time.
PRO TIP: Keep an eye on the
calendar. These types of reimburse-
ments are available for 18 months,
and not one day more.
 
 PROFIT-KILLER #4:
Amazon reimburses the seller for inventory claims – but not enough
When Amazon accepts a claim for reimburse-
ment, they are supposed to credit the seller
fairly. This doesn’t always happen.
First, let’s talk about what constitutes “fair.” A
reasonable reimbursement is the amount Am-
azon would transfer to the seller, less fees. In
other words, the seller receives exactly what
they would have gotten if an Amazon custom-
er bought the item and Amazon fulfilled it.
Amazon also has the option to reimburse the
seller by providing them with a replacement
inventory item.
Sometimes, however, the reimbursement
amount is far less than fair. In these instances,
the seller must open a case and ask for more.
For example, a seller shipped in a box of a new
private-label products as a test run. Amazon lost
the shipment and reimbursed the seller, but at a
rate below the cost of the goods. It required mul-
tiple back-and-forth emails with Seller Support,
as well as submission of invoices, to get a fair
reimbursement. A seller is not guaranteed to get
a better price, even when opening a case (called
a re-evaluation request).
PRO TIP: Provide clear evidence
that Amazon shorted you. That
can include your own recent sales
history, invoices, and more. If you
can’t provide data, don’t waste time
appealing.

however, the reimbursement amount is far less than fair.

...

It's never
"apples to apples"
in reimbursements
with Amazon FBA

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 PROFIT-KILLER #5:
Amazon messes up customer returns
Amazon set the Gold Standard for generous
customer returns policies. Sometimes, however,
the e-commerce giant’s generosity to customers
can end up harming sellers. Here are a few ways
that customer returns can come back to bite
sellers right in the inventory:
• The customer returns the item, but
Amazon doesn’t add it back to inventory
or reimburse the seller
• The customer received a refund, but they
never returned the item
• Amazon granted the customer a refund
that is more than they were originally
charged
• The customer sent back a damaged or
wrong item, and Amazon accepted it
• Amazon allowed the customer to return
an item outside of the return policy
(sometimes, Amazon customer service
goes crazy and allows returns even two
years after purchase!)
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Sellers can file claims for all of these er-
rors. It’s especially important to file claims in
February and March, when Amazon sees the
greatest customer abuse in terms of bad re-
turns, out-of-policy exceptions, and more.
PRO TIP: If you remove inventory
from the Amazon FCs, inspect it
carefully to see if Amazon committed
the above mistakes and owes you
money. Note that Amazon typically
only will reimburse for missing
components or incorrect items
received. If items are determined to
be damaged or defective, Amazon
blames the seller and will not offer
reimbursement.
It’s especially important to file
claims in February and March,
when Amazon sees the greatest
customer abuse in terms of bad
returns, out-of-policy exceptions,
and more.
 
 PROFIT-KILLER #6:
Amazon mismeasures an item and charges more fees
Many of the fees that Amazon sellers pay to FBA
are based on the weight and dimensions of their
products. This stands to reason:
• Larger items take up more space in
Amazon warehouses, resulting in higher
storage fees and transshipping costs
• Heavier and larger items require more
expensive packaging and shipping costs
Amazon relies on Cubiscan machines to de-
termine the size and weight of products.
Unfortunately, they may be inaccurate. The
machines may be dirty or not correctly cal-
ibrated and maintained. Or there may be
user error involved. Size/weight errors can
also be miscalculated because of product
packaging. Items that are in soft, plastic pack-
aging can change shapes, which may render
incorrect readings.
Whatever the reason, bad data have cost
Amazon sellers millions of dollars. It’s important
to conduct an ASIN-by-ASIN audit of what Ama-
zon shows as the weight and dimensions of in-
ventory items. If the numbers are more than 20
percent off, or if they push an item into a more
expensive size category, sellers should request
a measurement via a case in Seller Central. If
the numbers come back as inaccurate, the sell-
er must be prepared to reply with photographic
evidence of the real measurements.
Riverbend helped a client whose product was re-
peatedly mis-measured by Amazon FBA. The sell-
er was reimbursed more than $18,000 for wrong
dimensions on a single ASIN over 9 months.
PRO TIP: If you discover Amazon
has been over-charging based on
product dimensions, you can request
a refund of those fees going back 18
months. Don’t expect a full refund but
fight for what you can get. Appeals
companies can help with this as
well. Note that requesting weight/
dimensions re-measurements of a
specific listing can only be made
twice every 60 days.

Riverbend helped a
client whose product
was repeatedly
mis-measured by
Amazon FBA.

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 PROFIT-KILLER #7:
Amazon charges fees for the wrong category
Some categories are more expensive than
others. The referral fee percentage for most
categories is 15 percent. There are notable
exceptions:
• Video game consoles, computers,
full-size appliances and consumer
electronics are 8 percent
• Clothing and accessories are 17 percent
• Gift cards are 20 percent
• And there are more granular exceptions,
such as baby products costing $10 and
less are 8 percent, while baby products
costing more than $10 are 15 percent
If an ASIN belongs in home and garden, but is
put into clothing and accessories, that 2 per-
cent difference really adds up over time. For one
large seller we know, this very mistake added
up to a quarter-million dollars in inaccurate fees
over two years.
PRO TIP: Past overcharges for
category can be appealed, just
like overcharges for weight and
dimensions. Be prepared to provide
detailed information about your
losses, and don’t expect a full and
fair refund.

CATEGORY

For one large seller we know, this very mistake

added up to a quarter-million dollars in
inaccurate fees over two years.

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 PROFIT-KILLER #8:
Amazon destroys a seller’s inventory
without permission
In rare – but very expensive – circumstances,
Amazon destroys a seller’s inventory. This can
happen as a one-off situation. Or it can be a tre-
mendous mistake in concert with enforcement
by Seller Performance.
In the latter circumstance, here is what hap-
pens. Amazon suspends an ASIN from sale on
the platform. The company gives the seller a
deadline for removing that inventory from the
warehouse. While the seller appeals the suspen-
sion, Amazon jumps the gun and “destroys” the
inventory. Be aware, Amazon gives sellers only
30 days to create a removal order from the date
of the ASIN suspension notification.
Appealing this horrible error often requires esca-
lation to an executive team.

PRO TIP: This inventory is not

usually “destroyed.” It shows up in
the Amazon Warehouse Deals seller
account, or it is liquidated out of the
FCs. Of course, Amazon keeps the
proceeds in either case.

PROFIT-KILLER #9:
Amazon grants a reimbursement, but While the seller
never gives the seller the cash
Welcome to the accounting torture chamber, appeals the
where a seller must compare every promised
reimbursement to their actual financials on suspension,
Seller Central to find the errors.
Amazon jumps
PRO TIP: This is one more reason to
use a reimbursements service. You
the gun and
have better things to do with your time
– but you still need that money back!
‘destroys’ the
inventory.

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 PROFIT-KILLER #10:
Amazon fails to fulfill a removal order
This is a rarity, but easily missed by most PRO TIP: Keep a log of removal
sellers. Why? Because the people taking care orders that is regularly handed off to
of Seller Central and the team managing the whomever manages your warehouse.
seller’s warehouse are usually two totally Check off orders as they are received,
different groups and file claims for any that are
incomplete or damaged.
When removal orders are placed, it can take
Amazon FBA months to actually send the in-
ventory to the seller. This also creates a situ-
ation where the pending removal order falls
down a memory hole. Making it worse, Ama-
zon doesn’t have a true deadline internally for
these things.

When removal orders

are placed, it can
take Amazon FBA
months to actually
send the inventory
to the seller.

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The real bottom line?

The situation for most Amazon sellers is that there are

not enough hours in the day to manage all aspects of their
business. Time is best spent on growth, sales, customer
service, Amazon compliance and more. Everything else
is pushed to the bottom. FBA reimbursements money is
there. It's just difficult to get.

It starts with the Riverbend Consulting reimbursements

team. Letting us handle reimbursements is easy and re-
quires no out-of-pocket costs.

Riverbend Consulting finds the money you're owed.

That's the real bottom line.

GET STARTED!
See what our customers are saying.

Connect with us.

“We chose Riverbend CALL
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virtually nothing while they
consistently identify money EMAIL
Amazon owes us. Since
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starting, they’ve recovered
almost $300,000 in money
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challenge head-on. They manage GET YOUR MONEY
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with ASIN suspensions and account
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“Riverbend’s Amazon.
reimbursements team Solved.™
makes it easy. I don’t
have to worry and get in
the middle or deal with
Amazon FBA. They do an
excellent job.” 766 Shrewsbury Ave., Suite 401 Tinton Falls, NJ 07724