This post will cover the process sellers can take to reconcile any discrepancies found in their FBA shipments. Amazon FBA is a great program that takes the stress of warehousing inventory and shipping individual orders away from the seller. It not only can reduce your storage costs but also makes your products prime eligible which can offer faster delivery times for your customers, making it great for both sellers and buyers. However, when sellers send in inventory to Amazon FBA some units can get lost or misplaced during the shipping and receiving process. Sellers can work with Amazon to reconcile these missing/misplaced units by opening an investigation with Amazon’s receiving team to locate the inventory. Although Amazon will work with the seller the investigation process can be different if the seller is the manufacturer or is working with a separate manufacturer. This post will cover best practices for sellers and the documentation that is needed to open casework with Amazon and reconcile any discrepancies that were found during the FBA shipping process.
How to Identify a Discrepancy within an FBA Shipment
Before customers can purchase products from FBA inventory, sellers must ship in units to FBA. Sometimes during this process units can be lost or misplaced which can lead to a difference in the number of units a seller reports sending in and the number of units that Amazon reports as received. Sellers can determine if their shipment has a discrepancy by going to the Shipping Queue Page and locating the shipment they want to review. If the shipment is listed as closed Amazon has confirmed all the units received in the shipment against the number the seller listed in the shipment during creation. Each SKU that was included in the shipment will have a row listed along with the number of units that were received. Sellers should check the column to the left of the shipment status to see if the Units Expected matches the Units Located. If the numbers do not match sellers can track their shipment where they can follow the full shipping path and get detailed carrier-tracking information. If that number matches the units that were expected a “0” will show in the “Discrepancy” column. SKUs that had units received that are different from the number that was listed during shipment creation will show a number other than 0 (example: -2, +5).
If the numbers are different sellers should review the units that were located and have already been accounted for by hovering over “Units Located”. When hovering over Units Located, if the information shows a number for “units reconciled” this may mean that extra units in one of your FBA shipments have been researched and used to account for missing units in another. If there is a number next to “units reimbursed” this means that the units are not counted towards discrepancies and Amazon is taking responsibility for the missing units due to loss or damage and will therefore reimburse the seller.
How to Open an Investigation for a Discrepancy
Once a seller has reviewed any missing units that have been lost or accounted for they should look at the status column for each SKU. If there is a discrepancy still listed and it is eligible for a reconciliation request, there will be a drop-down menu next to it that states “Action required”. If a discrepancy is not eligible for reconciliation or if there were none found within the shipment for that item, it will list “Units located. No action required”.
Sellers may not be able to open an investigation for a discrepancy for multiple reasons. The most common reason is that Amazon has already researched the missing or misplaced units automatically. Once a seller has determined which discrepancies are eligible they can select the appropriate action from the drop-down menu in that SKUs column. The action options offer the seller to take responsibility for any shipping errors that stemmed from the seller's end such as not sending in enough units or sending in extra units than what was listed in the shipment. Both of these options will reconcile the inventory automatically once the reconciliation request is submitted. If a seller has determined that a discrepancy was not caused by an error on their end they can request that Amazon research the missing or extra units in the shipment by selecting the option that most accurately represents the inconsistency.
Documents Needed to Open an Investigation and Status of the Casework
To fully submit a research request for shipment discrepancy, Amazon requires sellers to provide proof of inventory ownership and proof of delivery to be submitted at the time of the request. The documentation that is required may sometimes vary if the shipment was through LTL, FTL, or SPD, and if the seller used an Amazon Partnered Carrier or a carrier of their choosing. Documents that are acceptable to show proof of inventory ownership include an invoice from a supplier, a receipt from another seller, or a signed packing slip ONLY if you are the manufacturer.
If you use an invoice to show ownership over the inventory, the following pieces must be included: Date of purchase, Product names matching the missing units, and the quantity purchased. If the seller is the manufacturer they can provide a copy of the signed packing slip as proof of ownership. However, the packing slip must include the Packing list date, Shipment or PO ID, Product names of the missing units, Quantity shipped, and the Manufacturer’s signature or stamp. If you shipped your units through LTL or FTL you will need to provide the number of boxes that were in the shipment and the total weight of it when it was picked up. The Amazon Partnered Carrier or the carrier selected by the seller should have a copy of this document (typically a BOL), which will help verify that the shipment was picked up and shipped in its entirety. Sellers should combine all of the documents into a single file that can be submitted for the research request.
Once a seller has provided documentation to show proof of inventory ownership they will be allowed to provide any additional information that may help Amazon locate the missing or extra units. This can include product IDs or GTINs, descriptions of the shipping boxes, and any missing prep or packing information that could help with the investigation. Once all of the reconciliation information and documentation is complete the seller can preview your request and then submit it. Once the request has been submitted the status column of the discrepancy will be listed as “Case submitted”. This status will continuously be updated as Amazon works to resolve the issue and will reflect their findings. Sellers can also learn more about their reconciliation cases through the seller support page.
FAQ
How to tell if there was a discrepancy with an FBA shipment?
Each SKU that was included in the shipment will have a row listed along with the number of units that were received. If that number matches the units that were expected a “0” will show in the “Discrepancy” column. SKUs that had units received that are different from the number that was listed during shipment creation will show a number other than 0 (example: -2, +5).
Does Amazon take responsibility for missing units in an FBA shipment?
If there is a number next to “units reimbursed” this means that the units are not counted towards discrepancies and Amazon is taking responsibility for the missing units due to loss or damage and will therefore reimburse the seller.
Are all discrepancies eligible for investigation?
Sellers may not be able to open an investigation for a discrepancy for multiple reasons. The most common reason is that Amazon has already researched the missing or misplaced units automatically.
What documentation is needed to submit a research request?
To fully submit a research request for shipment discrepancy, Amazon requires sellers to provide proof of inventory ownership and proof of delivery to be submitted at the time of the request.
How can I tell if my research request has been submitted and is being updated?
Once the request has been submitted the status column of the discrepancy will be listed as “Case submitted”. This status will continuously be updated as Amazon works to resolve the issue and will reflect their findings. Sellers can also learn more about their reconciliation cases through the seller support page.
Conclusion
Amazon FBA is a great way for both sellers and buyers to take advantage of all the opportunities Amazon has to offer. However, sellers need to send in inventory to make their products FBA eligible which can sometimes lead to lost or misplaced units. Sellers can work with Amazon to research and investigate any shipping discrepancies that are found so all units are accounted for or sellers can be reimbursed for any errors. This helps ensure the accuracy of future shipments and the relationship between sellers and Amazon. At Goat Consulting, we continue to learn about any issues sellers may face while selling on Amazon and what they can do to resolve these issues. If you have any questions about FBA shipments and discrepancies, reach out through our Contact Us Form.
About the Author
This Post was written by Matt McGinty, an Account Manager at Goat Consulting. Matt helps his clients sell on Amazon by increasing sales, mitigating risk, reducing costs, and solving problems. He has experience in FBA shipping and resolving shipment discrepancies for his Goat Consulting clients. If you want Matt to review your product listings, or assist with other aspects of selling on Amazon, he is happy to lead your account.