Amazon has updated its Fulfilled by Amazon (FBA) Inventory Reimbursement Policy, with a significant change taking effect from March 31, 2025. Under the new policy, reimbursements for lost, damaged, or misplaced FBA inventory will now be calculated based on the product’s manufacturing cost, instead of the previous methods such as average selling price or estimated market value.
This change is expected to have a considerable impact on sellers’ cost recovery, especially for those dealing in high-value, low-cost goods. For instance, if a product has a high retail price but a low production cost, the reimbursement may now be significantly lower than what sellers previously received.
Amazon stated that this update aims to bring greater consistency and fairness to the reimbursement process, but many sellers have expressed concern about the potential financial strain it may cause.
To prepare, sellers should review their cost structures and ensure that manufacturing costs are accurately documented within their account settings. Those relying heavily on FBA may need to reassess their inventory risk strategies or consider insurance alternatives to protect against losses.
This policy change underscores the importance of transparency and accurate reporting in today’s Amazon marketplace.
