New FBA inventory settings have been quietly auto-enabled for Amazon sellers. These settings include returned item evaluation and damaged inventory ownership.
Unfortunately, these setting changes put a focus on the seller taking on responsibility for damages that were completely outside of their control. In this article, we’ll break down what this means for sellers and how to best configure your settings according to your priorities.
What Is Amazon's New FBA Return Evaluation & Ownership Settings?
There are two new FBA inventory settings available in Seller Central, which have been auto-enabled:
Returned Item Evaluation:
- Get a reimbursement of the damaged return if the item was Amazon’s fault and agree to have your damaged items sold through alternative routes such as Amazon Resale or Woot.
- If the damage was caused by the seller, your items will simply be moved into unfulfillable inventory to be removed.
- This setting has been auto-enabled for FBA sellers.
Damaged Inventory Ownership:
- When opting out, you take ownership of all damaged units. You will not be reimbursed for the damaged items, and removal orders will be placed.
- When enabled, Amazon will evaluate each damaged unit. If Amazon is at fault, you will receive a reimbursement, and Amazon will sell the units through alternative channels such as Grade and Resell.
- This setting has been auto-enabled for FBA sellers.
Which FBA Inventory Evaluation & Ownership Settings Make Sense for Your Business?
When determining which FBA Inventory Evaluation & Ownership Setting settings are right for your business, there are several factors to consider. If receiving a reimbursement is your top priority, then you’re looking at losing ownership of your damaged inventory and allowing Amazon to own it and potentially ending up competing with you on your listings.
If you don’t mind not being reimbursed, opting out often makes the most sense when it comes to protecting your brand. Amazon owning the damaged units means they can essentially do whatever they want with them. However, taking ownership of Amazon-fault damaged units will, most likely, mean increased unfulfillable units and a need for more frequent removal orders to be placed, leaving you with damaged units and no reimbursement. Both options aren’t necessarily great, and it’s quite a shift from how things worked previously, where Amazon reimbursed you for damaged units without them taking ownership of the units.
If you're a client looking for more information, contact your account team! If you’re interested in learning more about how Blue Wheel can aid in your brand efforts in online marketplaces, schedule a consultation with our team, we would love to hear from you.
Julia Asburry is the Senior Marketplace Support Analyst at Blue Wheel, where she plays a vital role in enhancing Account Health and Customer Service management. Her work empowers our clients to not just sustain, but truly thrive in the eCommerce landscape. With over half a decade of diverse experience in the industry, she wears many hats within the organization, bringing a wealth of expertise that propels us forward and helps set us apart.
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