Turnover Tuesdays - Reimbursements
For those who are not familiar, I started a series a while back called Turnover Tuesdays. Every Tuesday I like to highlight one item that I have resold. This will include profitable and non profitable sales. I hope that there is always something to learn.
The previous posts in the series can be found at the bottom of this post.
Reimbursements, Yay!
Read more »I love reimbursement emails. Makes my day when they are large.
It's not unreasonable to say that being on top of reimbursements and your inventory is the most important aspect of selling on Amazon after actually selling.
There are lots of reasons that you get reimbursements when you sell with Amazon, some more obvious than others. They include Amazon not checking your inventory in (you sent in 6 and they received 5), lost and damaged inventory, returns initiated but never make it back to Amazon, returns after the return window has closed, returns that have been badly damaged. All these can be reasons for a full or partial reimbursement.
I cannot underestimate the importance of reimbursements. In 2016 alone, I have almost $500k in sales and over $42,000 in reimbursements. I have almost as much in reimbursements as with refunds. I would have difficulty having any profit without reimbursements.
The actual numbers come out to 8.6% of my gross sales sales! That's just straight crazy. My rate of lost items seems to be greater than average but it is considered industry average to have shrinkage of about 1%-5% of inventory. That same 1% of shrinkage can have a difference of about 5-10% on your margins.
Thankfully, as Amazon loses or damages your items they record everything in reports. You can run your inventory adjustment and inventory reconciliation reports. You can and should read them. There is a wealth of information about what's happening to your inventory after it gets sent to Amazon.
Sometimes, about 40% of the time according to one person I spoke to who runs a company specializing in Amazon reimbursements, Amazon auto reimburses you. Amazon acknowledges that they lost or damaged your item. This should be auto reimbursed 100% of the time. I'm pretty sure Amazon has software capable of doing that. The reality is that if you aren't asking for reimbursements you won't be getting about 60% of the reimbursements owed to you. That's your money, not Amazon's! You can't let Amazon take that away. Can anyone say class action lawsuit?
It's not unreasonable to say that being on top of reimbursements and your inventory is the most important aspect of selling on Amazon after actually selling.
There are lots of reasons that you get reimbursements when you sell with Amazon, some more obvious than others. They include Amazon not checking your inventory in (you sent in 6 and they received 5), lost and damaged inventory, returns initiated but never make it back to Amazon, returns after the return window has closed, returns that have been badly damaged. All these can be reasons for a full or partial reimbursement.
I cannot underestimate the importance of reimbursements. In 2016 alone, I have almost $500k in sales and over $42,000 in reimbursements. I have almost as much in reimbursements as with refunds. I would have difficulty having any profit without reimbursements.
The actual numbers come out to 8.6% of my gross sales sales! That's just straight crazy. My rate of lost items seems to be greater than average but it is considered industry average to have shrinkage of about 1%-5% of inventory. That same 1% of shrinkage can have a difference of about 5-10% on your margins.
Thankfully, as Amazon loses or damages your items they record everything in reports. You can run your inventory adjustment and inventory reconciliation reports. You can and should read them. There is a wealth of information about what's happening to your inventory after it gets sent to Amazon.
Sometimes, about 40% of the time according to one person I spoke to who runs a company specializing in Amazon reimbursements, Amazon auto reimburses you. Amazon acknowledges that they lost or damaged your item. This should be auto reimbursed 100% of the time. I'm pretty sure Amazon has software capable of doing that. The reality is that if you aren't asking for reimbursements you won't be getting about 60% of the reimbursements owed to you. That's your money, not Amazon's! You can't let Amazon take that away. Can anyone say class action lawsuit?
Inventory Shrinkage - Silent but Deadly
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