Is it Amazon’s responsibility if the item was damaged during handling or storage?

I received the following message from Amazon regarding one of my items in FBA:

“We want to let you know that your Fulfilment by Amazon inventory listed below became unsellable within the past 7 days because it is no longer in sellable condition.”

The item was in perfect condition when I sent it in, so I’m trying to understand who is responsible for this.

Am I eligible for a reimbursement or refund in this case, or do I just have to accept the loss?

Create removal order for that. And see why they are saying so.

If the unit(s) were damaged while in transit to Amazon (reimbursable), damaged inside Amazon’s warehouse (reimbursable), or damaged by the carrier while delivering them to the customer (reimbursable), you can submit a case for reimbursement. However, if the customer damaged the goods or if the items are defective, they are ineligible for reimbursement.

Check your inventory ledger report and submit a case if you find any items under the dispositions mentioned above.

Alternatively, you can reach out to the Groa Group and let them handle your reimbursement claims while you focus on rocking your sales.

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