Why Amazon Doesnβt Always Reimburse You Automatically: Debunking the Myth of "Perfect Automation"
For many Amazon FBA sellers, there is a comforting, if dangerous, belief that Amazonβs sophisticated systems are watching every single unit like a hawk. The thinking goes: "If they lose my product or a customer doesn't return an item, Amazonβs algorithms will catch it and put the money back in my account automatically."
In 2026, this "perfect automation" is a myth that could be costing your business 1% to 3% of its total annual revenue. While Amazon has increased its automated reconciliation efforts, the system is designed for warehouse efficiency, not seller profit protection.
If you are relying solely on Amazon to find its own mistakes, you arenβt just being optimistic - youβre likely leaving thousands of dollars on the table, if you are a medium to large scale seller. Here is the truth about why "automatic" isn't enough in the 2026 FBA landscape.
The 2026 Shift: A Narrower Window for Errors
Amazon recently overhauled its reimbursement policy, and the results are clear: the burden of proof has shifted entirely to the seller.
The most significant change is the 60-day claim window. Previously, sellers had a generous timeframe to find historical errors. Now, for most fulfillment center operations - including lost or damaged inventory - you have a strict 60 days from the date the error was reported in your Inventory Ledger to file a claim. If Amazonβs "automation" doesn't catch the mistake within that window, and you don't catch it either, that money belongs to Amazon forever.
Why the "Automatic" Script Fails
Amazon handles billions of transactions. Their automated reconciliation scripts are designed to catch the most obvious, high-level discrepancies, but they frequently miss the "fringe" cases that eat away at your margins.
1. The "Ghost Refund" Trap
One of the most common automation failures involves customer returns. When a customer initiates a return, Amazon often issues an immediate refund. If that customer fails to return the item within 45 days, Amazon is supposed to recharge the customer or reimburse the seller.
However, "supposed to" is not "always". Thousands of units fall through the cracks where a refund was issued but no return was ever received, and the automated system simply fails to trigger the 45-day reversal.
2. Inbound Shipment Discrepancies
Shipping 500 units but having only 485 scanned in is a standard FBA headache. While Amazonβs receiving process is mostly automated, it is prone to human and system error during the "check-in" phase.
In 2026, Amazon specifically requires Amazon-provided proof of delivery forms and stamped bills of lading (BOL) for LTL shipments to prove these missing units. Automated scripts cannot verify these physical documents for you; if you don't manually submit the evidence, the "missing 15 units" remain a permanent loss.
3. The "Found" Inventory Loophole
Sometimes Amazonβs system does find a lost item. When this happens, they may reverse a previous reimbursement. While this seems fair, the system often fails to account for the condition of the found item. If Amazon "finds" a unit that was previously lost but is now unsellable or damaged, their automated system might still reverse your cash reimbursement, leaving you with a broken product and no money.
Decoding the Jargon: The "Alphabet Soup"
To beat the myth of automation, you have to understand the language of the Inventory Ledger. Amazon uses specific adjustment codes to label what happened to your stock. Automation often ignores the nuances of these codes:
Code E: Damaged at a fulfillment center.
Code M: Missing.
Code F: Found.
Code Q: Damaged by an Amazon-operated carrier.
The danger lies in the "M" without an "F". If an item is marked "Missing" and isn't "Found" within 30 days, you are eligible for reimbursementβbut the system doesn't always trigger that payout automatically.
Sourcing Cost: The New Financial Hurdle
As of March 2025, Amazon shifted its reimbursement calculation model. Instead of reimbursing you based on the estimated sale price, they now reimburse based on your verified sourcing cost.
If you haven't uploaded your manufacturing or landed costs into the Inventory Defect & Reimbursement portal, Amazon will "estimate" the value for you. These internal estimates are notoriously lower than actual costs, leading to massive under-reimbursements that automated systems will never "correct" on their own.
The Reality of "Burden of Proof"
Amazonβs automation is essentially a "first pass". It catches the low-hanging fruit. For everything else, Amazon requires a "perfect claim" consisting of:
Supplier Invoices: Matching the exact ASINs and quantities.
Proof of Delivery: Stamped BOLs or signed freight receipts.
Transaction IDs: Specific data points pulled from the fulfillment reports.
Automated bots can flag these discrepancies, but they often fail at the appeals process. First-line support denies a significant percentage of valid claims. Without human oversight to escalate these denials with professional evidence, that money stays in Amazonβs pocket.
Final Thoughts: Why ARD Reimbursements is the Real Solution
The myth of perfect automation is a expensive one to believe. In 2026, the brands that thrive are the ones that recognize Amazonβs systems for what they are: efficient, but far from infallible.
At ARD Reimbursements, we bridge the gap between "what Amazon caught" and "what you are actually owed." We combine sophisticated data analysis to find the errors with expert human oversight to handle the complex documentation and appeals process.
Don't leave your profit to chance. Protecting your margins in 2026 requires a partner who knows that "automatic" is only the beginning.