Effective March 31, 2025, Amazon is changing its reimbursement policy for Fulfillment by Amazon (FBA) inventory that is lost or damaged before a customer order. Previously, based on the selling price, reimbursements will now be calculated using the manufacturing cost of the item. This “manufacturing cost” refers to the expense of sourcing or producing the product, explicitly excluding shipping, handling, customs, or packaging costs.
Sellers have two options:
- Accept Amazon’s Estimate: Amazon will provide an estimated manufacturing cost, derived from comparable products or wholesale data.
- Submit Your Own Data: Sellers can submit their actual cost data through the “Manage Your Manufacturing Cost” page within the Inventory Defect and Reimbursement Portal, which is fully operational as of February 28, 2025.
This policy update may lead to lower reimbursements for high-margin or high-value items, as manufacturing costs are typically less than retail prices. Amazon states this change aims to provide greater transparency and predictability in reimbursements and align with a consistent approach for supporting sellers with supply chain services. For items lost or damaged after a customer order, Amazon will continue to reimburse based on the original sales price minus applicable fees.
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