Inventory sometimes arrives at an LVK warehouse damaged, or is found damaged later during receiving, floor work, or returns. LVK holds damaged units separately so they never ship to a customer, and reimburses you for losses that exceed the shrinkage allowance in your service agreement.
Table of Contents
Damaged Inventory Guidelines and Reimbursement
Shrinkage is inventory that goes missing or becomes unsellable while in LVK's care. LVK works to keep shrinkage under 3% of your inventory, which is the threshold set in our service level agreement (SLA).
- LVK credits your account for missing or damaged units only when the loss exceeds the 3% SLA threshold.
- To be reimbursed, provide a valid purchase order or invoice showing the product cost.
- If a unit credited as lost is later found and added back to inventory within 180 business days, LVK withdraws the credit.
- Final accounting and inventory reconciliation can take up to 12 months.
For the full policy language, review section 4.22 of the LVK Terms of Service.
How LVK Warehouses Handle Damaged Inventory
- When the warehouse finds a damaged item during receiving, on the floor, or in a return, it moves the unit to an unsellable damaged location. Units in that location are never allocated to orders.
- For disputes or cycle counts on claims above the 3% shrinkage SLA, LVK investigates across all warehouse locations before resolving the claim.
- Damaged units are held for 30 days while LVK waits for your decision.
Getting Notified About Damaged Inventory
Turn on email notifications to be alerted when the warehouse finds damaged products at receiving. See Email Notifications for setup steps.
Choosing What Happens to Damaged Inventory
Tell LVK whether to ship the damaged units back to you. When you request a return, LVK creates a manual order for the shipment.
Important
If LVK does not hear from you within 30 days, the damaged product is disposed of automatically. Both disposals and return shipments are subject to a fee.