Will Amazon Refund a Stolen Package?

Package theft has become a hot-button issue among online shoppers and ranks high even on the Amazon delivery list. SafeWise reported that more than 260 million packages were stolen in the U.S. alone last year; these shocking figures illustrate what is referred to in the media as “porch piracy.”

For 3P sellers in Amazon’s ecosystem, stolen packages can mean customer disputes, clarifying refunds, and, perhaps, income loss. But whose fault is it when the package goes missing? Is the customer going to be refunded by Amazon, or does the seller shoulder the cost?

This guide contains a breakdown of everything to do with stolen package policies on Amazon, refund processes, and ways 3P sellers can protect their businesses from losses through theft.

Understanding Amazon’s Stolen Package Policy

Will Amazon Cover Stolen Packages?

Whether or not Amazon’s stolen package policy covers lost or stolen packages is determined by how the order was fulfilled:

• Fulfillment by Amazon (FBA):When Amazon has fulfilled the order, it assumes responsibility for all lost or stolen package claims. In most cases, this means that either replacement behind the scenes or refund at the cost of Amazon occurs with no direct cost or consequence to the seller.
• Fulfilled by Merchant (FBM): if for an item fulfilled by the seller, Amazon does not simply trigger a refund. The seller then decides, henceforth, whether or not to replace or refund the item.

Amazon’s A-to-Z Guarantee and Stolen Packages

Customers making FBM orders can file A-to-Z Guarantee Claims for stolen packages, whereupon Amazon will offer refunds in some situations when the seller does not react in time. Sellers wishing to dispute such claims will have to offer convincing proof through well-documented evidence of delivery (tracking information, signature confirmation, etc.).

What Happens When a Customer Claims a Package Was Stolen?

If a customer contacts Amazon about a stolen package, the process typically follows these steps:

1. Customer Reports the Issue
   • The customer reports the package as missing through Amazon’s Order Page or customer service.
   • If the order is FBA, Amazon handles the claim.
   • If the order is FBM, the seller receives a notification.
2. Amazon Investigates
   • If Amazon shipped the package, they check tracking data and may issue a refund if it appears lost or stolen.
   • If the seller shipped the package, Amazon encourages them to resolve the issue directly with the customer.
3. Potential A-to-Z Claim
   • If a seller does not resolve the issue, the customer can file an A-to-Z Guarantee claim.
   • If Amazon rules in favor of the customer, the seller may be forced to refund the order.
   • Winning the Buy Box is critical for maximizing sales, but unresolved A-to-Z claims can impact your seller performance, reducing your chances of securing the Buy Now Box.

How Stolen Packages Affect Amazon 3P Sellers

For Amazon 3P sellers, stolen package claims can impact:

• Revenue Loss: If Amazon refunds the order through an A-to-Z claim, the seller loses both the product and the payment.
• Seller Performance Metrics: High A-to-Z claims can impact seller account health rating, leading to warnings or account suspensions.
• Increased Customer Service Inquiries: Handling stolen package complaints adds operational strain, affecting efficiency.
• Negative Impact on BSR: Frequent stolen package claims can indirectly affect sales performance by influencing Best Sellers Rank (BSR). 

Who is Responsible for Stolen Packages?

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Additional Note: If your Amazon account is handling multiple brands or sales channels, ensuring compliance with Amazon’s policies is crucial. Managing multiple accounts can complicate order fulfillment responsibilities, especially in FBM cases.

Measures to Take for 3P Sellers to Handle Stolen Package Claims

Here are the 5 step that sellers can follow to claim about an Amazon stolen package:

1. Confirm the Delivery Status

• Verify with tracking if the package was ever delivered.
• Check with the customer to ask if they have had the chance to speak to neighbors or contact the apartment office.
• If the package is still in transit, tell customers of an expected delivery date.

2. Signature Required on High-Value Orders

• The signature can be useful in avoiding disputes and proving delivery.
• Amazon does allow sellers to add signatures’ requirements for their orders above $750 (for more details, refer to Amazon’s guidelines here).

3. File a Claim with the Carrier

• If the package was insured, the seller can file a claim via USPS, FedEx, or UPS.
• They reimburse lost or stolen packages to some carriers.

4. Provide Partial Refund or Replacement

• Repeat customers can build trust when they receive discounts or replaced goods.
• Some sellers use “porch piracy insurance” or an outside shipping protection service.

5. Provide Customers with Secure Delivery Training

• Send updates on tracking then recommend Amazon Hub Locker for secured deliveries.
• Advise them to use Amazon key, which is a secure in-home delivery service.

Avoiding Stolen Package Problems as a 3P Seller

1. Use Amazon FBA for High-Risk Areas

Shifting liability to Amazon in case of theft is the benefit of FBA. Amazon’s Warehousing and Distribution (AWD) services provide additional flexibility and security for brands looking to minimize fulfillment risks. A seller who regularly ships to an area known for high rates of package theft may reduce risks by switching to FBA.

2. Implement Shipping Insurance

• Shipping should be insured by Route, Shipsurance, or others.
• In case of package loss or theft, insurance will give the seller his money back.

3. Offer Alternative Pickup Options

• Be prepared to suggest alternative drop-off points such as work addresses or Amazon Hub locations.
• The trust-conscious buyer will appreciate the fact that there are more than 900,000 pickup points worldwide offered by Amazon.

4. Track A-to-Z Claims and Appeal Unfair Refunds

• If an A-to-Z claim does not end up holding true, give proof of delivery and dispute the refund.
• Track claim history and respond within the 72-hour dispute period set by Amazon.

How Amazon’s Stolen Package Policy Compares to Other Marketplaces

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Amazon’s policy places more responsibility on FBM sellers, while FBA provides better protection against package theft claims.

For sellers dealing with package theft concerns, an optimized advertising budget can help offset unexpected losses. Understanding the cost of Amazon Ads can help maximize profitability while mitigating risks.

Final Thoughts

For Amazon 3P sellers, handling stolen package claims is a critical part of account management. While Amazon refunds FBA orders, FBM sellers must take extra steps to protect their business.

To minimize risk:

• Consider using FBA for high-risk deliveries
• Offer signature confirmation for expensive products
• Educate customers on secure shipping options

Dealing with stolen packages, A-to-Z claims, and refunds can be time-consuming and frustrating. If you need expert help managing your Amazon account, AMZDudes can handle everything from refunds and claims to FBA strategy and seller account performance optimization.

Let AMZDudes take the stress off your plate—Contact us today to protect your profits and grow your business.