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.
237 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?
Jim_Amazon
@Seller_QjYfjZwWH8D0l
*Updating for further clarification"
“Manufacturing cost” means your cost to source a product from a manufacturer/wholesaler/reseller, or produce the item if you are the manufacturer. You can provide the proof of your cost of sourcing and we will reimburse you accordingly. If you do not wish to provide your cost, we will provide our cost estimate and we will reimburse you for it. We calculate our estimate by evaluating the sourcing cost of comparable products sold by Amazon, by other sellers, and through other wholesale channels.
-Jim
Seller_j0JMQJYq9lUkL
Manufacturing cost + Shipping into AMZ cost, labeling cost, placement fees, etc?
Seller_kZvm6BR3doXxX
so…we can give Amazon our cost data (privileged and none of anyone’s business), or Amazon will give it too us?
If that is the case, our decision becomes this: is amazon going guess wrong in my favor and will I take it if they do? And if I do will they assume it’s better?
If I do t take what they give me and I tell them what my costs are, it gives them an advantage that could be really bad!
I think this crosses a line.
Seller_x2xL3sBjd3TPS
Can this be put into the page for total transparency?
Jim_Amazon
@Seller_j0JMQJYq9lUkL
“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.
-Jim
Seller_NTtgyr4S9sRAA
So it excludes all the money Amazon made on us on the product? You realize that means Amazon can "lose" my products, sell them to customers and then reimburse me ONLY my buy cost while making me carry all the other costs including storage, shipping inbound to Amazon etc.
So I have to pay placement fees, shipping etc TO Amazon only for them to "destroy" my item, sell it themselves and pay me less than the replacement cost. Cool.
Seller_zc50DVO3FE5fz
This is an underlooked comment. Amazon can literally *make more money* by losing the items and then selling them. Come on, if that's not illegal I don't know what is. Amazon needs to reimburse for the entire COGS - sourcing cost, import cost, shipping from manufacturer to seller cost, and shipping to Amazon cost. Otherwise, again, Amazon literally profits from losing inventory. That's not how it's suppose to work. Amazon is suppose to lose money when this happens so that they have an incentive to reduce the losses.
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....
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.
237 replies
237 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?
Jim_Amazon
@Seller_QjYfjZwWH8D0l
*Updating for further clarification"
“Manufacturing cost” means your cost to source a product from a manufacturer/wholesaler/reseller, or produce the item if you are the manufacturer. You can provide the proof of your cost of sourcing and we will reimburse you accordingly. If you do not wish to provide your cost, we will provide our cost estimate and we will reimburse you for it. We calculate our estimate by evaluating the sourcing cost of comparable products sold by Amazon, by other sellers, and through other wholesale channels.
-Jim
Seller_j0JMQJYq9lUkL
Manufacturing cost + Shipping into AMZ cost, labeling cost, placement fees, etc?
Seller_kZvm6BR3doXxX
so…we can give Amazon our cost data (privileged and none of anyone’s business), or Amazon will give it too us?
If that is the case, our decision becomes this: is amazon going guess wrong in my favor and will I take it if they do? And if I do will they assume it’s better?
If I do t take what they give me and I tell them what my costs are, it gives them an advantage that could be really bad!
I think this crosses a line.
Seller_x2xL3sBjd3TPS
Can this be put into the page for total transparency?
Jim_Amazon
@Seller_j0JMQJYq9lUkL
“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.
-Jim
Seller_NTtgyr4S9sRAA
So it excludes all the money Amazon made on us on the product? You realize that means Amazon can "lose" my products, sell them to customers and then reimburse me ONLY my buy cost while making me carry all the other costs including storage, shipping inbound to Amazon etc.
So I have to pay placement fees, shipping etc TO Amazon only for them to "destroy" my item, sell it themselves and pay me less than the replacement cost. Cool.
Seller_zc50DVO3FE5fz
This is an underlooked comment. Amazon can literally *make more money* by losing the items and then selling them. Come on, if that's not illegal I don't know what is. Amazon needs to reimburse for the entire COGS - sourcing cost, import cost, shipping from manufacturer to seller cost, and shipping to Amazon cost. Otherwise, again, Amazon literally profits from losing inventory. That's not how it's suppose to work. Amazon is suppose to lose money when this happens so that they have an incentive to reduce the losses.
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_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?
Jim_Amazon
@Seller_QjYfjZwWH8D0l
*Updating for further clarification"
“Manufacturing cost” means your cost to source a product from a manufacturer/wholesaler/reseller, or produce the item if you are the manufacturer. You can provide the proof of your cost of sourcing and we will reimburse you accordingly. If you do not wish to provide your cost, we will provide our cost estimate and we will reimburse you for it. We calculate our estimate by evaluating the sourcing cost of comparable products sold by Amazon, by other sellers, and through other wholesale channels.
-Jim
Jim_Amazon
@Seller_QjYfjZwWH8D0l
*Updating for further clarification"
“Manufacturing cost” means your cost to source a product from a manufacturer/wholesaler/reseller, or produce the item if you are the manufacturer. You can provide the proof of your cost of sourcing and we will reimburse you accordingly. If you do not wish to provide your cost, we will provide our cost estimate and we will reimburse you for it. We calculate our estimate by evaluating the sourcing cost of comparable products sold by Amazon, by other sellers, and through other wholesale channels.
-Jim
Seller_j0JMQJYq9lUkL
Manufacturing cost + Shipping into AMZ cost, labeling cost, placement fees, etc?
Seller_j0JMQJYq9lUkL
Manufacturing cost + Shipping into AMZ cost, labeling cost, placement fees, etc?
Seller_kZvm6BR3doXxX
so…we can give Amazon our cost data (privileged and none of anyone’s business), or Amazon will give it too us?
If that is the case, our decision becomes this: is amazon going guess wrong in my favor and will I take it if they do? And if I do will they assume it’s better?
If I do t take what they give me and I tell them what my costs are, it gives them an advantage that could be really bad!
I think this crosses a line.
Seller_kZvm6BR3doXxX
so…we can give Amazon our cost data (privileged and none of anyone’s business), or Amazon will give it too us?
If that is the case, our decision becomes this: is amazon going guess wrong in my favor and will I take it if they do? And if I do will they assume it’s better?
If I do t take what they give me and I tell them what my costs are, it gives them an advantage that could be really bad!
I think this crosses a line.
Seller_x2xL3sBjd3TPS
Can this be put into the page for total transparency?
Seller_x2xL3sBjd3TPS
Can this be put into the page for total transparency?
Jim_Amazon
@Seller_j0JMQJYq9lUkL
“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.
-Jim
Jim_Amazon
@Seller_j0JMQJYq9lUkL
“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.
-Jim
Seller_NTtgyr4S9sRAA
So it excludes all the money Amazon made on us on the product? You realize that means Amazon can "lose" my products, sell them to customers and then reimburse me ONLY my buy cost while making me carry all the other costs including storage, shipping inbound to Amazon etc.
So I have to pay placement fees, shipping etc TO Amazon only for them to "destroy" my item, sell it themselves and pay me less than the replacement cost. Cool.
Seller_NTtgyr4S9sRAA
So it excludes all the money Amazon made on us on the product? You realize that means Amazon can "lose" my products, sell them to customers and then reimburse me ONLY my buy cost while making me carry all the other costs including storage, shipping inbound to Amazon etc.
So I have to pay placement fees, shipping etc TO Amazon only for them to "destroy" my item, sell it themselves and pay me less than the replacement cost. Cool.
Seller_zc50DVO3FE5fz
This is an underlooked comment. Amazon can literally *make more money* by losing the items and then selling them. Come on, if that's not illegal I don't know what is. Amazon needs to reimburse for the entire COGS - sourcing cost, import cost, shipping from manufacturer to seller cost, and shipping to Amazon cost. Otherwise, again, Amazon literally profits from losing inventory. That's not how it's suppose to work. Amazon is suppose to lose money when this happens so that they have an incentive to reduce the losses.
Seller_zc50DVO3FE5fz
This is an underlooked comment. Amazon can literally *make more money* by losing the items and then selling them. Come on, if that's not illegal I don't know what is. Amazon needs to reimburse for the entire COGS - sourcing cost, import cost, shipping from manufacturer to seller cost, and shipping to Amazon cost. Otherwise, again, Amazon literally profits from losing inventory. That's not how it's suppose to work. Amazon is suppose to lose money when this happens so that they have an incentive to reduce the losses.
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....
