Amazon recently announced updates to its FBA inventory reimbursement policy, designed to improve transparency and predictability in how sellers are reimbursed for lost or damaged inventory. These changes will take effect on March 10, 2025, impacting how reimbursements are calculated.
Key Update: Reimbursements Based on Manufacturing Cost
Previously, reimbursements were often based on market value or sales price, but Amazon is shifting to a manufacturing cost model. If inventory is lost or damaged before a customer orders, reimbursement will be based on the actual cost to source or manufacture the product—not the selling price.
What is Considered “Manufacturing Cost”?
- The cost to source the product from a manufacturer, wholesaler, or reseller
- The cost to produce the item if you are the manufacturer
- Excludes shipping, handling, customs duties, and other additional costs
How Sellers Can Manage Manufacturing Costs
Amazon is offering sellers two options for determining the manufacturing cost:
- Amazon-Generated Estimate: Amazon will calculate a cost estimate based on comparable products sold on Amazon and other wholesale sources.
- Seller-Provided Cost: Sellers can manually enter their own manufacturing costs. If no value is provided, Amazon will use its estimate, but sellers can update this later.
Sellers can view and manage these costs through the Inventory Defect and Reimbursement portal starting in late January 2025 using a new “Manage Your Manufacturing Cost” page.
Automatic Reimbursements for Lost Items
Amazon has also streamlined the reimbursement process by offering automatic reimbursements for inventory lost in its fulfillment centers—eliminating the need for sellers to submit claims manually.
The reimbursement model for items lost or damaged after a customer order remains unchanged. Sellers will continue to receive compensation based on the original sales price minus applicable fees.
What the new FBA Inventory Reimbursement Policy Means for Sellers
- You’ll have more control over reimbursement calculations by submitting your manufacturing costs.
- Reimbursement amounts may change, as they will no longer be based on sales price but on manufacturing costs.
- Lost inventory claims will be automated, reducing manual work for sellers.
How to Prepare for a New FBA Inventory Reimbursement Policy
Sellers should review and, if necessary, update their manufacturing costs in Seller Central before the March 10 deadline. To do so:
- Go to the Inventory Defect and Reimbursement portal in Seller Central.
- Access the “Manage Your Manufacturing Cost” page.
- Enter or adjust the relevant FNSKU/ASIN manufacturing cost and save changes.
- Stay informed by checking Amazon’s “Changes to Program Policies” section.
What to Expect
Amazon will continue to reimburse the sales price minus fees for items lost or damaged after a customer orders. However, shipping costs, customs duties, and additional expenses will not be covered. Amazon assures that any seller-provided cost data will remain confidential.
This change aims to standardize reimbursements and improve transparency and efficiency in Amazon’s logistics processes. For more information, sellers can visit the updated FAQ section in Seller Central.
To ensure you’re not leaving any money on the table, sign up with Refund Retriever before the new FBA inventory reimbursement policy takes effect. The Refund Retriever expert team tracks every claim, ensuring you get back every dollar you’re owed. Plus, with our free audit, you can see exactly what you’re missing—at no upfront cost.
As Amazon continues to refine its fulfillment processes, these updates aim to provide sellers with a more structured and efficient reimbursement system. Understanding how these changes affect your business will help you stay ahead and optimize your FBA strategy.
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