Update to the FBA inventory reimbursement policy
Note: This article was updated on December 19, 2024, to include a clarified definition of "manufacturing cost."
We’re updating our Fulfillment by Amazon (FBA) inventory reimbursement policy to help provide you greater transparency and more predictability in how reimbursements are calculated for items that are lost or damaged before a customer order. This will help drive a more consistent approach that works as we support sellers with supply chain services across their sales channels.
Effective March 10, 2025, we’ll reimburse you based on the product manufacturing cost of the affected inventory. "Manufacturing cost" means your cost to source a product from a manufacturer, wholesaler, reseller, or produce the item if you are the manufacturer. It excludes costs such as shipping, handling, customs duties, or other costs.
To help provide you greater control and accuracy, you can choose how we determine the manufacturing cost for your products:
- We’ll provide a manufacturing cost estimate for you. This estimate is based on a comprehensive evaluation of comparable products sold by Amazon, by other sellers, and through wholesale channels.
- You can provide your manufacturing costs directly. If you don’t provide your own costs, we’ll automatically apply our estimate which you can change when you’re ready.
To help you prepare, you can view and manage manufacturing costs in the Inventory Defect and Reimbursement portal starting in late January using a new Manage Your Manufacturing Cost page.
We’re constantly refining our operations and processes to prevent products from being lost or damaged and having to be reimbursed. For cases where reimbursement is necessary, we’re focused on ensuring timely compensation. We now offer automatic reimbursements for items lost in our fulfillment centers, saving you time, and eliminating the need for you to submit a claim to receive reimbursement.
For items that are lost or damaged after a customer order in Amazon’s store, we’ll continue to reimburse you for the sales price on the original order minus applicable fees.
For more information on the policy change, please visit the Changes to program policies.
Update to the FBA inventory reimbursement policy
Note: This article was updated on December 19, 2024, to include a clarified definition of "manufacturing cost."
We’re updating our Fulfillment by Amazon (FBA) inventory reimbursement policy to help provide you greater transparency and more predictability in how reimbursements are calculated for items that are lost or damaged before a customer order. This will help drive a more consistent approach that works as we support sellers with supply chain services across their sales channels.
Effective March 10, 2025, we’ll reimburse you based on the product manufacturing cost of the affected inventory. "Manufacturing cost" means your cost to source a product from a manufacturer, wholesaler, reseller, or produce the item if you are the manufacturer. It excludes costs such as shipping, handling, customs duties, or other costs.
To help provide you greater control and accuracy, you can choose how we determine the manufacturing cost for your products:
- We’ll provide a manufacturing cost estimate for you. This estimate is based on a comprehensive evaluation of comparable products sold by Amazon, by other sellers, and through wholesale channels.
- You can provide your manufacturing costs directly. If you don’t provide your own costs, we’ll automatically apply our estimate which you can change when you’re ready.
To help you prepare, you can view and manage manufacturing costs in the Inventory Defect and Reimbursement portal starting in late January using a new Manage Your Manufacturing Cost page.
We’re constantly refining our operations and processes to prevent products from being lost or damaged and having to be reimbursed. For cases where reimbursement is necessary, we’re focused on ensuring timely compensation. We now offer automatic reimbursements for items lost in our fulfillment centers, saving you time, and eliminating the need for you to submit a claim to receive reimbursement.
For items that are lost or damaged after a customer order in Amazon’s store, we’ll continue to reimburse you for the sales price on the original order minus applicable fees.
For more information on the policy change, please visit the Changes to program policies.
200 replies
Seller_QjYfjZwWH8D0l
So, if I purchase my products wholesale directly from a brand, is Amazon saying they will only reimburse for the brand's manufacturing costs?
Seller_m1OFsSylNDclw
Amazon is basically saying at any time we can declare your inventory lost, we will give you next to nothing excluding all your branding, packaging, handling and shipping costs and they will take your inventory and sell it for their profit
Seller_gwzuNYC3ogYNo
This is horrifying, especially for Handmade sellers, the ones who are not a factory in China.
Seller_x6o9Gvi16YLhJ
YAY! A great tool to harvest the Costs of Goods Sold from every seller!
In a nutshell: "We won't increase fees for you in 2025, but we have to make more money from you somehow"
Seller_MyXY4Myx9zVcR
So Amazon is going to give me the manufacturing cost of a book published in 1925 that is now worth several hundred dollars? Back when materials were cheap and bindery workers were paid 35 cents an hour?
Seller_RBhUBoAVfCNRG
Its astonishing that Amazon seems to be unable to release a single thing that doesnt (mess) over sellers. This makes zero sense. YOU lost the inventory, YOU bought it....
Seller_bjJHkys7Ew1Hn
I guess I should never be shocked but Amazon basically going "we can screw you however we want and nothing you can do about it" here. You guys are horrendous at scanning in products and you lose thousands of our products every single year and now the plan is to have small businesses LOSE a bunch of money because you guys can't get your act together. Amazon has always passed on external costs to small businesses but now, they are just openly passing on internal costs because they are terrible at scanning items in. Sometimes you guys really just are absolutely unbelievable.
Seller_dajYY7jiOtYmT
This is unreasonable and unfair to seller.
Amazon should not only reimburse the manufacturing cost but also the transportation cost from the manufacturing to seller, the labor cost of labeling, packing, the storage cost of seller, also the transportation cost from seller to Amazon warehouse, and the inventory placement fee!!!!!!!!!!!! a lot more, man!!!!!!!!!
Seller_m1OFsSylNDclw
It should be made painful to Amazon for Amazon to lose your inventory.
They use money as an incentive for sellers to act correctly, they should also use money for Amazon to act correctly.
There is now zero incentive for Amazon to improve, in fact this is incentive to lose even more inventory
Update to the FBA inventory reimbursement policy
Note: This article was updated on December 19, 2024, to include a clarified definition of "manufacturing cost."
We’re updating our Fulfillment by Amazon (FBA) inventory reimbursement policy to help provide you greater transparency and more predictability in how reimbursements are calculated for items that are lost or damaged before a customer order. This will help drive a more consistent approach that works as we support sellers with supply chain services across their sales channels.
Effective March 10, 2025, we’ll reimburse you based on the product manufacturing cost of the affected inventory. "Manufacturing cost" means your cost to source a product from a manufacturer, wholesaler, reseller, or produce the item if you are the manufacturer. It excludes costs such as shipping, handling, customs duties, or other costs.
To help provide you greater control and accuracy, you can choose how we determine the manufacturing cost for your products:
- We’ll provide a manufacturing cost estimate for you. This estimate is based on a comprehensive evaluation of comparable products sold by Amazon, by other sellers, and through wholesale channels.
- You can provide your manufacturing costs directly. If you don’t provide your own costs, we’ll automatically apply our estimate which you can change when you’re ready.
To help you prepare, you can view and manage manufacturing costs in the Inventory Defect and Reimbursement portal starting in late January using a new Manage Your Manufacturing Cost page.
We’re constantly refining our operations and processes to prevent products from being lost or damaged and having to be reimbursed. For cases where reimbursement is necessary, we’re focused on ensuring timely compensation. We now offer automatic reimbursements for items lost in our fulfillment centers, saving you time, and eliminating the need for you to submit a claim to receive reimbursement.
For items that are lost or damaged after a customer order in Amazon’s store, we’ll continue to reimburse you for the sales price on the original order minus applicable fees.
For more information on the policy change, please visit the Changes to program policies.
Update to the FBA inventory reimbursement policy
Note: This article was updated on December 19, 2024, to include a clarified definition of "manufacturing cost."
We’re updating our Fulfillment by Amazon (FBA) inventory reimbursement policy to help provide you greater transparency and more predictability in how reimbursements are calculated for items that are lost or damaged before a customer order. This will help drive a more consistent approach that works as we support sellers with supply chain services across their sales channels.
Effective March 10, 2025, we’ll reimburse you based on the product manufacturing cost of the affected inventory. "Manufacturing cost" means your cost to source a product from a manufacturer, wholesaler, reseller, or produce the item if you are the manufacturer. It excludes costs such as shipping, handling, customs duties, or other costs.
To help provide you greater control and accuracy, you can choose how we determine the manufacturing cost for your products:
- We’ll provide a manufacturing cost estimate for you. This estimate is based on a comprehensive evaluation of comparable products sold by Amazon, by other sellers, and through wholesale channels.
- You can provide your manufacturing costs directly. If you don’t provide your own costs, we’ll automatically apply our estimate which you can change when you’re ready.
To help you prepare, you can view and manage manufacturing costs in the Inventory Defect and Reimbursement portal starting in late January using a new Manage Your Manufacturing Cost page.
We’re constantly refining our operations and processes to prevent products from being lost or damaged and having to be reimbursed. For cases where reimbursement is necessary, we’re focused on ensuring timely compensation. We now offer automatic reimbursements for items lost in our fulfillment centers, saving you time, and eliminating the need for you to submit a claim to receive reimbursement.
For items that are lost or damaged after a customer order in Amazon’s store, we’ll continue to reimburse you for the sales price on the original order minus applicable fees.
For more information on the policy change, please visit the Changes to program policies.
Update to the FBA inventory reimbursement policy
Note: This article was updated on December 19, 2024, to include a clarified definition of "manufacturing cost."
We’re updating our Fulfillment by Amazon (FBA) inventory reimbursement policy to help provide you greater transparency and more predictability in how reimbursements are calculated for items that are lost or damaged before a customer order. This will help drive a more consistent approach that works as we support sellers with supply chain services across their sales channels.
Effective March 10, 2025, we’ll reimburse you based on the product manufacturing cost of the affected inventory. "Manufacturing cost" means your cost to source a product from a manufacturer, wholesaler, reseller, or produce the item if you are the manufacturer. It excludes costs such as shipping, handling, customs duties, or other costs.
To help provide you greater control and accuracy, you can choose how we determine the manufacturing cost for your products:
- We’ll provide a manufacturing cost estimate for you. This estimate is based on a comprehensive evaluation of comparable products sold by Amazon, by other sellers, and through wholesale channels.
- You can provide your manufacturing costs directly. If you don’t provide your own costs, we’ll automatically apply our estimate which you can change when you’re ready.
To help you prepare, you can view and manage manufacturing costs in the Inventory Defect and Reimbursement portal starting in late January using a new Manage Your Manufacturing Cost page.
We’re constantly refining our operations and processes to prevent products from being lost or damaged and having to be reimbursed. For cases where reimbursement is necessary, we’re focused on ensuring timely compensation. We now offer automatic reimbursements for items lost in our fulfillment centers, saving you time, and eliminating the need for you to submit a claim to receive reimbursement.
For items that are lost or damaged after a customer order in Amazon’s store, we’ll continue to reimburse you for the sales price on the original order minus applicable fees.
For more information on the policy change, please visit the Changes to program policies.
200 replies
200 replies
Seller_QjYfjZwWH8D0l
So, if I purchase my products wholesale directly from a brand, is Amazon saying they will only reimburse for the brand's manufacturing costs?
Seller_m1OFsSylNDclw
Amazon is basically saying at any time we can declare your inventory lost, we will give you next to nothing excluding all your branding, packaging, handling and shipping costs and they will take your inventory and sell it for their profit
Seller_gwzuNYC3ogYNo
This is horrifying, especially for Handmade sellers, the ones who are not a factory in China.
Seller_x6o9Gvi16YLhJ
YAY! A great tool to harvest the Costs of Goods Sold from every seller!
In a nutshell: "We won't increase fees for you in 2025, but we have to make more money from you somehow"
Seller_MyXY4Myx9zVcR
So Amazon is going to give me the manufacturing cost of a book published in 1925 that is now worth several hundred dollars? Back when materials were cheap and bindery workers were paid 35 cents an hour?
Seller_RBhUBoAVfCNRG
Its astonishing that Amazon seems to be unable to release a single thing that doesnt (mess) over sellers. This makes zero sense. YOU lost the inventory, YOU bought it....
Seller_bjJHkys7Ew1Hn
I guess I should never be shocked but Amazon basically going "we can screw you however we want and nothing you can do about it" here. You guys are horrendous at scanning in products and you lose thousands of our products every single year and now the plan is to have small businesses LOSE a bunch of money because you guys can't get your act together. Amazon has always passed on external costs to small businesses but now, they are just openly passing on internal costs because they are terrible at scanning items in. Sometimes you guys really just are absolutely unbelievable.
Seller_dajYY7jiOtYmT
This is unreasonable and unfair to seller.
Amazon should not only reimburse the manufacturing cost but also the transportation cost from the manufacturing to seller, the labor cost of labeling, packing, the storage cost of seller, also the transportation cost from seller to Amazon warehouse, and the inventory placement fee!!!!!!!!!!!! a lot more, man!!!!!!!!!
Seller_m1OFsSylNDclw
It should be made painful to Amazon for Amazon to lose your inventory.
They use money as an incentive for sellers to act correctly, they should also use money for Amazon to act correctly.
There is now zero incentive for Amazon to improve, in fact this is incentive to lose even more inventory
Seller_QjYfjZwWH8D0l
So, if I purchase my products wholesale directly from a brand, is Amazon saying they will only reimburse for the brand's manufacturing costs?
Seller_QjYfjZwWH8D0l
So, if I purchase my products wholesale directly from a brand, is Amazon saying they will only reimburse for the brand's manufacturing costs?
Seller_m1OFsSylNDclw
Amazon is basically saying at any time we can declare your inventory lost, we will give you next to nothing excluding all your branding, packaging, handling and shipping costs and they will take your inventory and sell it for their profit
Seller_m1OFsSylNDclw
Amazon is basically saying at any time we can declare your inventory lost, we will give you next to nothing excluding all your branding, packaging, handling and shipping costs and they will take your inventory and sell it for their profit
Seller_gwzuNYC3ogYNo
This is horrifying, especially for Handmade sellers, the ones who are not a factory in China.
Seller_gwzuNYC3ogYNo
This is horrifying, especially for Handmade sellers, the ones who are not a factory in China.
Seller_x6o9Gvi16YLhJ
YAY! A great tool to harvest the Costs of Goods Sold from every seller!
In a nutshell: "We won't increase fees for you in 2025, but we have to make more money from you somehow"
Seller_x6o9Gvi16YLhJ
YAY! A great tool to harvest the Costs of Goods Sold from every seller!
In a nutshell: "We won't increase fees for you in 2025, but we have to make more money from you somehow"
Seller_MyXY4Myx9zVcR
So Amazon is going to give me the manufacturing cost of a book published in 1925 that is now worth several hundred dollars? Back when materials were cheap and bindery workers were paid 35 cents an hour?
Seller_MyXY4Myx9zVcR
So Amazon is going to give me the manufacturing cost of a book published in 1925 that is now worth several hundred dollars? Back when materials were cheap and bindery workers were paid 35 cents an hour?
Seller_RBhUBoAVfCNRG
Its astonishing that Amazon seems to be unable to release a single thing that doesnt (mess) over sellers. This makes zero sense. YOU lost the inventory, YOU bought it....
Seller_RBhUBoAVfCNRG
Its astonishing that Amazon seems to be unable to release a single thing that doesnt (mess) over sellers. This makes zero sense. YOU lost the inventory, YOU bought it....
Seller_bjJHkys7Ew1Hn
I guess I should never be shocked but Amazon basically going "we can screw you however we want and nothing you can do about it" here. You guys are horrendous at scanning in products and you lose thousands of our products every single year and now the plan is to have small businesses LOSE a bunch of money because you guys can't get your act together. Amazon has always passed on external costs to small businesses but now, they are just openly passing on internal costs because they are terrible at scanning items in. Sometimes you guys really just are absolutely unbelievable.
Seller_bjJHkys7Ew1Hn
I guess I should never be shocked but Amazon basically going "we can screw you however we want and nothing you can do about it" here. You guys are horrendous at scanning in products and you lose thousands of our products every single year and now the plan is to have small businesses LOSE a bunch of money because you guys can't get your act together. Amazon has always passed on external costs to small businesses but now, they are just openly passing on internal costs because they are terrible at scanning items in. Sometimes you guys really just are absolutely unbelievable.
Seller_dajYY7jiOtYmT
This is unreasonable and unfair to seller.
Amazon should not only reimburse the manufacturing cost but also the transportation cost from the manufacturing to seller, the labor cost of labeling, packing, the storage cost of seller, also the transportation cost from seller to Amazon warehouse, and the inventory placement fee!!!!!!!!!!!! a lot more, man!!!!!!!!!
Seller_dajYY7jiOtYmT
This is unreasonable and unfair to seller.
Amazon should not only reimburse the manufacturing cost but also the transportation cost from the manufacturing to seller, the labor cost of labeling, packing, the storage cost of seller, also the transportation cost from seller to Amazon warehouse, and the inventory placement fee!!!!!!!!!!!! a lot more, man!!!!!!!!!
Seller_m1OFsSylNDclw
It should be made painful to Amazon for Amazon to lose your inventory.
They use money as an incentive for sellers to act correctly, they should also use money for Amazon to act correctly.
There is now zero incentive for Amazon to improve, in fact this is incentive to lose even more inventory
Seller_m1OFsSylNDclw
It should be made painful to Amazon for Amazon to lose your inventory.
They use money as an incentive for sellers to act correctly, they should also use money for Amazon to act correctly.
There is now zero incentive for Amazon to improve, in fact this is incentive to lose even more inventory
