Amazon recently shared an update to its FBA inventory reimbursement policy, which will take effect on March 10, 2025. This change aims to provide sellers with more transparency and predictability when it comes to how reimbursements are calculated for items that are lost or damaged before a customer orders.
Here’s what’s changing and what it means for you:
Reimbursement will be based on manufacturing cost: Manufacturing cost refers to the amount it costs you to source or produce a product. It does not include additional costs like shipping, customs duties, or handling.
You can choose how manufacturing costs are determined: Amazon can estimate your manufacturing costs based on similar products sold on their platform, by other sellers, or through wholesale channels. Alternatively, you can provide your own manufacturing cost data for greater accuracy.
New portal to manage costs: Starting late January, you’ll be able to use the Manage Your Manufacturing Cost page in the Inventory Defect and Reimbursement portal to view and manage your costs.
Automatic reimbursements for lost items: Amazon will now automatically reimburse you for items lost in their fulfillment centers, saving you time by eliminating the need to file a claim.
Reimbursements for customer-damaged items remain the same: For items lost or damaged after a customer order, Amazon will still reimburse you based on the original sales price, minus applicable fees.
We believe these changes can benefit sellers by reducing the hassle of managing claims and offering more control over reimbursement calculations. However, it’s essential to review your product data and update manufacturing costs if needed to avoid relying solely on Amazon’s estimates.
If you have questions about how these changes might affect your business, feel free to reach out. As experienced Amazon FBA reimbursement specialists, we’re here to help you navigate these updates and optimize your FBA operations!
