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News_Amazon

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.

4.4K views
237 replies
Tags:News and Announcements
7321
Reply
user profile
News_Amazon

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.

Tags:News and Announcements
7321
4.4K views
237 replies
Reply
237 replies
user profile
Seller_WrMwp7lazozxc
In reply to: News_Amazon's post

Can Walmart ask Amazon what their COGs are on all their products? So how does Amazon think it's legal to ask us??

Did they forget they are a retailer/competitor and our COGs is protected information??

Of course they didn't. More monopolistic behavior going unchecked.

160
user profile
Seller_n1mh65Ij2NT7L
In reply to: News_Amazon's post

Let me think about this. We're constantly getting reimbursements for items not related to lost/damaged a warehouse. If a customer says they're returning something, and doesn't- which happens frequently- we have to come up with an accounting for each item if we don't like the reimbursement offer? There's lots of different costs beyond raw materials and labor associated with what an item costs to manufacture, like amortization of equipment, labor, shipping costs.... they're really expecting a full accounting of all this for a $20 item? I can understand what they're saying- UPS has been doing this for years.

40
user profile
Seller_ArhelWBexgFWn
In reply to: News_Amazon's post

oh c'mon everyone, not a single thumbs up to Amazon's brilliant new idea?!! Just 121 thumbs down????

You mean you don't want to send expensive items fba?!! 🤣🤣🤣

60
user profile
Seller_Ggt6s7zXEwLbA
In reply to: News_Amazon's post

Imagine being a Handmade artist spending hours painting and reworking upcycled material into fantastic works of art - only for Amazon to roll over them with a forklift and then offer one dollar as the cost of the scrap metal.

90
user profile
Seller_zb6tVApbhJTtU
In reply to: News_Amazon's post

What about shipping cost?

50
user profile
Seller_0I4CZUZo4HarM
In reply to: News_Amazon's post

A product’s cost cannot be separated from expenses such as shipping, handling, customs duties, and other associated costs. This approach is fundamentally unfair.

A professional seller calculates product costs by considering not only the above expenses but also additional factors such as labor, rents, third party warehouse costs, research and development, patents, licenses, certifications, software expenses, and financing costs. For instance, financing costs must account for the time lag between paying for the product and receiving revenue, which can often take up to three months.

Moreover, when a product is lost before being sold, replacing it takes time, resulting in lost sales and ranking positions. This delay further compounds the negative impact on the seller’s business.

Even under the previous system, where reimbursements were based on the selling price, the process was still unfair. For example, if products equivalent to 15 days of sales are lost, the reimbursement might cover the sales value. However, the time and effort required to restock the inventory and regain previous ranking positions create additional challenges that are not addressed by such compensation.

Additionally, sellers bear the entire risk of transporting products to Amazon’s fulfillment centers, covering all shipping, customs, and related expenses, as well as the risk of damage or loss during transit. Sellers deliver their products to Amazon’s warehouses in perfect condition, having covered all associated costs. However, if Amazon loses the products, will the reimbursement simply be based on the invoice cost paid to the manufacturer in China?

This approach disregards the significant investment and effort sellers make to ensure their products reach Amazon’s warehouses safely and the risks they assume along the way.

This is really not fair at all.

270
user profile
Seller_pyCNvcu4niexi
In reply to: News_Amazon's post

Something else that people rarely bring up or let alone understand relates to double charging us fulfillment fees when there is a reimbursement related to a customer order. I'll explain step by step and then you'll see why amazon decided to keep the same reimbursement structure for post-sale reimbursements:

1) Customer orders product and we are charged all the fba fees

2) Customer initiates return. We are NOT refunded for fulfillment fees.

3) We are reimbursed according to policy, which DEDUCTS the fulfillment fee once again.

So, amazon gets a two for one deal here. They provide the fulfillment services once and charge for it, but don't have to lift a finger for the 2nd time they charge these fees.

90
user profile
Seller_9yQUzZAP34cYw
In reply to: News_Amazon's post

You can't be serious.

It Amazon can arbitrairily decide how much to pay us for the inventory we send for FBA, what incentive do they have to do their job correctly? All this does is make it more profitable for Amazon to "loose" our inventory. This us utterly insane.

90
user profile
Seller_1YkWo4vbgfSN0
In reply to: News_Amazon's post

Wow -- that is all I can say. There are sooo many thing wrong with this that I cannot even start. Who is making these decisions? Are they really pushing to eliminate all third party sellers. This surely will be the way.

At the end of the if Amazon loses items they should be accountable. This makes us all accountable for their mistakes. We all see this as a back door way to find out our costs and then to do a quick analysis on what products they should sell to push us out of the market. Alternatively if we dont provide costs they make up a low ball price. Either way Amazon wins as a result of their incompetence in receiving items.

If anything this policy incentivizing Amazon to lose more of our product. Absolutely crazy!

120
user profile
Seller_r9wMm8LrE5iKj
In reply to: News_Amazon's post

Blow me. Cost of goods is proprietary information, and once you have that, you will use it to do evil. Our biggest competitor is Amazon as a seller, knocking off our products and unevenly enforcing anti-competitive rules.

Is this some kind of race to see how quickly you can get to the bottom?

120
user profile
Seller_r9wMm8LrE5iKj
In reply to: News_Amazon's post

Step 1: via a rule that has since been determined illegal, make Amazon the "cheapest" platform, putting 3rd party sites out of business

Step 2: via fees that Amazon as a seller does not have to pay, steal the buy box from other sellers (or force them to sell at a loss)

Step 3: offer to let those sellers back in, as long as they switch to FBA and pay even more fees

Step 4: make FBA even worse: lose items then find them and resell them directly, raise fees and make reducing costs impossible, reship damaged goods from buyer fraud then punish the seller for that, etc. etc.

Step 5: illegally mine 3rd party data to create knock off products, and use a FAIL (lost goods) to gain even more insight into which products to cannibalize.

Step 6: profit, and hopefully burn in h*ll.

I don't understand why the mods would even want to work at this sociopath of a corporation.

110
user profile
News_Amazon

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.

4.4K views
237 replies
Tags:News and Announcements
7321
Reply
user profile
News_Amazon

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.

Tags:News and Announcements
7321
4.4K views
237 replies
Reply
user profile

Update to the FBA inventory reimbursement policy

by News_Amazon

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.

Tags:News and Announcements
7321
4.4K views
237 replies
Reply
237 replies
237 replies
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user profile
Seller_WrMwp7lazozxc
In reply to: News_Amazon's post

Can Walmart ask Amazon what their COGs are on all their products? So how does Amazon think it's legal to ask us??

Did they forget they are a retailer/competitor and our COGs is protected information??

Of course they didn't. More monopolistic behavior going unchecked.

160
user profile
Seller_n1mh65Ij2NT7L
In reply to: News_Amazon's post

Let me think about this. We're constantly getting reimbursements for items not related to lost/damaged a warehouse. If a customer says they're returning something, and doesn't- which happens frequently- we have to come up with an accounting for each item if we don't like the reimbursement offer? There's lots of different costs beyond raw materials and labor associated with what an item costs to manufacture, like amortization of equipment, labor, shipping costs.... they're really expecting a full accounting of all this for a $20 item? I can understand what they're saying- UPS has been doing this for years.

40
user profile
Seller_ArhelWBexgFWn
In reply to: News_Amazon's post

oh c'mon everyone, not a single thumbs up to Amazon's brilliant new idea?!! Just 121 thumbs down????

You mean you don't want to send expensive items fba?!! 🤣🤣🤣

60
user profile
Seller_Ggt6s7zXEwLbA
In reply to: News_Amazon's post

Imagine being a Handmade artist spending hours painting and reworking upcycled material into fantastic works of art - only for Amazon to roll over them with a forklift and then offer one dollar as the cost of the scrap metal.

90
user profile
Seller_zb6tVApbhJTtU
In reply to: News_Amazon's post

What about shipping cost?

50
user profile
Seller_0I4CZUZo4HarM
In reply to: News_Amazon's post

A product’s cost cannot be separated from expenses such as shipping, handling, customs duties, and other associated costs. This approach is fundamentally unfair.

A professional seller calculates product costs by considering not only the above expenses but also additional factors such as labor, rents, third party warehouse costs, research and development, patents, licenses, certifications, software expenses, and financing costs. For instance, financing costs must account for the time lag between paying for the product and receiving revenue, which can often take up to three months.

Moreover, when a product is lost before being sold, replacing it takes time, resulting in lost sales and ranking positions. This delay further compounds the negative impact on the seller’s business.

Even under the previous system, where reimbursements were based on the selling price, the process was still unfair. For example, if products equivalent to 15 days of sales are lost, the reimbursement might cover the sales value. However, the time and effort required to restock the inventory and regain previous ranking positions create additional challenges that are not addressed by such compensation.

Additionally, sellers bear the entire risk of transporting products to Amazon’s fulfillment centers, covering all shipping, customs, and related expenses, as well as the risk of damage or loss during transit. Sellers deliver their products to Amazon’s warehouses in perfect condition, having covered all associated costs. However, if Amazon loses the products, will the reimbursement simply be based on the invoice cost paid to the manufacturer in China?

This approach disregards the significant investment and effort sellers make to ensure their products reach Amazon’s warehouses safely and the risks they assume along the way.

This is really not fair at all.

270
user profile
Seller_pyCNvcu4niexi
In reply to: News_Amazon's post

Something else that people rarely bring up or let alone understand relates to double charging us fulfillment fees when there is a reimbursement related to a customer order. I'll explain step by step and then you'll see why amazon decided to keep the same reimbursement structure for post-sale reimbursements:

1) Customer orders product and we are charged all the fba fees

2) Customer initiates return. We are NOT refunded for fulfillment fees.

3) We are reimbursed according to policy, which DEDUCTS the fulfillment fee once again.

So, amazon gets a two for one deal here. They provide the fulfillment services once and charge for it, but don't have to lift a finger for the 2nd time they charge these fees.

90
user profile
Seller_9yQUzZAP34cYw
In reply to: News_Amazon's post

You can't be serious.

It Amazon can arbitrairily decide how much to pay us for the inventory we send for FBA, what incentive do they have to do their job correctly? All this does is make it more profitable for Amazon to "loose" our inventory. This us utterly insane.

90
user profile
Seller_1YkWo4vbgfSN0
In reply to: News_Amazon's post

Wow -- that is all I can say. There are sooo many thing wrong with this that I cannot even start. Who is making these decisions? Are they really pushing to eliminate all third party sellers. This surely will be the way.

At the end of the if Amazon loses items they should be accountable. This makes us all accountable for their mistakes. We all see this as a back door way to find out our costs and then to do a quick analysis on what products they should sell to push us out of the market. Alternatively if we dont provide costs they make up a low ball price. Either way Amazon wins as a result of their incompetence in receiving items.

If anything this policy incentivizing Amazon to lose more of our product. Absolutely crazy!

120
user profile
Seller_r9wMm8LrE5iKj
In reply to: News_Amazon's post

Blow me. Cost of goods is proprietary information, and once you have that, you will use it to do evil. Our biggest competitor is Amazon as a seller, knocking off our products and unevenly enforcing anti-competitive rules.

Is this some kind of race to see how quickly you can get to the bottom?

120
user profile
Seller_r9wMm8LrE5iKj
In reply to: News_Amazon's post

Step 1: via a rule that has since been determined illegal, make Amazon the "cheapest" platform, putting 3rd party sites out of business

Step 2: via fees that Amazon as a seller does not have to pay, steal the buy box from other sellers (or force them to sell at a loss)

Step 3: offer to let those sellers back in, as long as they switch to FBA and pay even more fees

Step 4: make FBA even worse: lose items then find them and resell them directly, raise fees and make reducing costs impossible, reship damaged goods from buyer fraud then punish the seller for that, etc. etc.

Step 5: illegally mine 3rd party data to create knock off products, and use a FAIL (lost goods) to gain even more insight into which products to cannibalize.

Step 6: profit, and hopefully burn in h*ll.

I don't understand why the mods would even want to work at this sociopath of a corporation.

110
user profile
Seller_WrMwp7lazozxc
In reply to: News_Amazon's post

Can Walmart ask Amazon what their COGs are on all their products? So how does Amazon think it's legal to ask us??

Did they forget they are a retailer/competitor and our COGs is protected information??

Of course they didn't. More monopolistic behavior going unchecked.

160
user profile
Seller_WrMwp7lazozxc
In reply to: News_Amazon's post

Can Walmart ask Amazon what their COGs are on all their products? So how does Amazon think it's legal to ask us??

Did they forget they are a retailer/competitor and our COGs is protected information??

Of course they didn't. More monopolistic behavior going unchecked.

160
Reply
user profile
Seller_n1mh65Ij2NT7L
In reply to: News_Amazon's post

Let me think about this. We're constantly getting reimbursements for items not related to lost/damaged a warehouse. If a customer says they're returning something, and doesn't- which happens frequently- we have to come up with an accounting for each item if we don't like the reimbursement offer? There's lots of different costs beyond raw materials and labor associated with what an item costs to manufacture, like amortization of equipment, labor, shipping costs.... they're really expecting a full accounting of all this for a $20 item? I can understand what they're saying- UPS has been doing this for years.

40
user profile
Seller_n1mh65Ij2NT7L
In reply to: News_Amazon's post

Let me think about this. We're constantly getting reimbursements for items not related to lost/damaged a warehouse. If a customer says they're returning something, and doesn't- which happens frequently- we have to come up with an accounting for each item if we don't like the reimbursement offer? There's lots of different costs beyond raw materials and labor associated with what an item costs to manufacture, like amortization of equipment, labor, shipping costs.... they're really expecting a full accounting of all this for a $20 item? I can understand what they're saying- UPS has been doing this for years.

40
Reply
user profile
Seller_ArhelWBexgFWn
In reply to: News_Amazon's post

oh c'mon everyone, not a single thumbs up to Amazon's brilliant new idea?!! Just 121 thumbs down????

You mean you don't want to send expensive items fba?!! 🤣🤣🤣

60
user profile
Seller_ArhelWBexgFWn
In reply to: News_Amazon's post

oh c'mon everyone, not a single thumbs up to Amazon's brilliant new idea?!! Just 121 thumbs down????

You mean you don't want to send expensive items fba?!! 🤣🤣🤣

60
Reply
user profile
Seller_Ggt6s7zXEwLbA
In reply to: News_Amazon's post

Imagine being a Handmade artist spending hours painting and reworking upcycled material into fantastic works of art - only for Amazon to roll over them with a forklift and then offer one dollar as the cost of the scrap metal.

90
user profile
Seller_Ggt6s7zXEwLbA
In reply to: News_Amazon's post

Imagine being a Handmade artist spending hours painting and reworking upcycled material into fantastic works of art - only for Amazon to roll over them with a forklift and then offer one dollar as the cost of the scrap metal.

90
Reply
user profile
Seller_zb6tVApbhJTtU
In reply to: News_Amazon's post

What about shipping cost?

50
user profile
Seller_zb6tVApbhJTtU
In reply to: News_Amazon's post

What about shipping cost?

50
Reply
user profile
Seller_0I4CZUZo4HarM
In reply to: News_Amazon's post

A product’s cost cannot be separated from expenses such as shipping, handling, customs duties, and other associated costs. This approach is fundamentally unfair.

A professional seller calculates product costs by considering not only the above expenses but also additional factors such as labor, rents, third party warehouse costs, research and development, patents, licenses, certifications, software expenses, and financing costs. For instance, financing costs must account for the time lag between paying for the product and receiving revenue, which can often take up to three months.

Moreover, when a product is lost before being sold, replacing it takes time, resulting in lost sales and ranking positions. This delay further compounds the negative impact on the seller’s business.

Even under the previous system, where reimbursements were based on the selling price, the process was still unfair. For example, if products equivalent to 15 days of sales are lost, the reimbursement might cover the sales value. However, the time and effort required to restock the inventory and regain previous ranking positions create additional challenges that are not addressed by such compensation.

Additionally, sellers bear the entire risk of transporting products to Amazon’s fulfillment centers, covering all shipping, customs, and related expenses, as well as the risk of damage or loss during transit. Sellers deliver their products to Amazon’s warehouses in perfect condition, having covered all associated costs. However, if Amazon loses the products, will the reimbursement simply be based on the invoice cost paid to the manufacturer in China?

This approach disregards the significant investment and effort sellers make to ensure their products reach Amazon’s warehouses safely and the risks they assume along the way.

This is really not fair at all.

270
user profile
Seller_0I4CZUZo4HarM
In reply to: News_Amazon's post

A product’s cost cannot be separated from expenses such as shipping, handling, customs duties, and other associated costs. This approach is fundamentally unfair.

A professional seller calculates product costs by considering not only the above expenses but also additional factors such as labor, rents, third party warehouse costs, research and development, patents, licenses, certifications, software expenses, and financing costs. For instance, financing costs must account for the time lag between paying for the product and receiving revenue, which can often take up to three months.

Moreover, when a product is lost before being sold, replacing it takes time, resulting in lost sales and ranking positions. This delay further compounds the negative impact on the seller’s business.

Even under the previous system, where reimbursements were based on the selling price, the process was still unfair. For example, if products equivalent to 15 days of sales are lost, the reimbursement might cover the sales value. However, the time and effort required to restock the inventory and regain previous ranking positions create additional challenges that are not addressed by such compensation.

Additionally, sellers bear the entire risk of transporting products to Amazon’s fulfillment centers, covering all shipping, customs, and related expenses, as well as the risk of damage or loss during transit. Sellers deliver their products to Amazon’s warehouses in perfect condition, having covered all associated costs. However, if Amazon loses the products, will the reimbursement simply be based on the invoice cost paid to the manufacturer in China?

This approach disregards the significant investment and effort sellers make to ensure their products reach Amazon’s warehouses safely and the risks they assume along the way.

This is really not fair at all.

270
Reply
user profile
Seller_pyCNvcu4niexi
In reply to: News_Amazon's post

Something else that people rarely bring up or let alone understand relates to double charging us fulfillment fees when there is a reimbursement related to a customer order. I'll explain step by step and then you'll see why amazon decided to keep the same reimbursement structure for post-sale reimbursements:

1) Customer orders product and we are charged all the fba fees

2) Customer initiates return. We are NOT refunded for fulfillment fees.

3) We are reimbursed according to policy, which DEDUCTS the fulfillment fee once again.

So, amazon gets a two for one deal here. They provide the fulfillment services once and charge for it, but don't have to lift a finger for the 2nd time they charge these fees.

90
user profile
Seller_pyCNvcu4niexi
In reply to: News_Amazon's post

Something else that people rarely bring up or let alone understand relates to double charging us fulfillment fees when there is a reimbursement related to a customer order. I'll explain step by step and then you'll see why amazon decided to keep the same reimbursement structure for post-sale reimbursements:

1) Customer orders product and we are charged all the fba fees

2) Customer initiates return. We are NOT refunded for fulfillment fees.

3) We are reimbursed according to policy, which DEDUCTS the fulfillment fee once again.

So, amazon gets a two for one deal here. They provide the fulfillment services once and charge for it, but don't have to lift a finger for the 2nd time they charge these fees.

90
Reply
user profile
Seller_9yQUzZAP34cYw
In reply to: News_Amazon's post

You can't be serious.

It Amazon can arbitrairily decide how much to pay us for the inventory we send for FBA, what incentive do they have to do their job correctly? All this does is make it more profitable for Amazon to "loose" our inventory. This us utterly insane.

90
user profile
Seller_9yQUzZAP34cYw
In reply to: News_Amazon's post

You can't be serious.

It Amazon can arbitrairily decide how much to pay us for the inventory we send for FBA, what incentive do they have to do their job correctly? All this does is make it more profitable for Amazon to "loose" our inventory. This us utterly insane.

90
Reply
user profile
Seller_1YkWo4vbgfSN0
In reply to: News_Amazon's post

Wow -- that is all I can say. There are sooo many thing wrong with this that I cannot even start. Who is making these decisions? Are they really pushing to eliminate all third party sellers. This surely will be the way.

At the end of the if Amazon loses items they should be accountable. This makes us all accountable for their mistakes. We all see this as a back door way to find out our costs and then to do a quick analysis on what products they should sell to push us out of the market. Alternatively if we dont provide costs they make up a low ball price. Either way Amazon wins as a result of their incompetence in receiving items.

If anything this policy incentivizing Amazon to lose more of our product. Absolutely crazy!

120
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Seller_1YkWo4vbgfSN0
In reply to: News_Amazon's post

Wow -- that is all I can say. There are sooo many thing wrong with this that I cannot even start. Who is making these decisions? Are they really pushing to eliminate all third party sellers. This surely will be the way.

At the end of the if Amazon loses items they should be accountable. This makes us all accountable for their mistakes. We all see this as a back door way to find out our costs and then to do a quick analysis on what products they should sell to push us out of the market. Alternatively if we dont provide costs they make up a low ball price. Either way Amazon wins as a result of their incompetence in receiving items.

If anything this policy incentivizing Amazon to lose more of our product. Absolutely crazy!

120
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user profile
Seller_r9wMm8LrE5iKj
In reply to: News_Amazon's post

Blow me. Cost of goods is proprietary information, and once you have that, you will use it to do evil. Our biggest competitor is Amazon as a seller, knocking off our products and unevenly enforcing anti-competitive rules.

Is this some kind of race to see how quickly you can get to the bottom?

120
user profile
Seller_r9wMm8LrE5iKj
In reply to: News_Amazon's post

Blow me. Cost of goods is proprietary information, and once you have that, you will use it to do evil. Our biggest competitor is Amazon as a seller, knocking off our products and unevenly enforcing anti-competitive rules.

Is this some kind of race to see how quickly you can get to the bottom?

120
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user profile
Seller_r9wMm8LrE5iKj
In reply to: News_Amazon's post

Step 1: via a rule that has since been determined illegal, make Amazon the "cheapest" platform, putting 3rd party sites out of business

Step 2: via fees that Amazon as a seller does not have to pay, steal the buy box from other sellers (or force them to sell at a loss)

Step 3: offer to let those sellers back in, as long as they switch to FBA and pay even more fees

Step 4: make FBA even worse: lose items then find them and resell them directly, raise fees and make reducing costs impossible, reship damaged goods from buyer fraud then punish the seller for that, etc. etc.

Step 5: illegally mine 3rd party data to create knock off products, and use a FAIL (lost goods) to gain even more insight into which products to cannibalize.

Step 6: profit, and hopefully burn in h*ll.

I don't understand why the mods would even want to work at this sociopath of a corporation.

110
user profile
Seller_r9wMm8LrE5iKj
In reply to: News_Amazon's post

Step 1: via a rule that has since been determined illegal, make Amazon the "cheapest" platform, putting 3rd party sites out of business

Step 2: via fees that Amazon as a seller does not have to pay, steal the buy box from other sellers (or force them to sell at a loss)

Step 3: offer to let those sellers back in, as long as they switch to FBA and pay even more fees

Step 4: make FBA even worse: lose items then find them and resell them directly, raise fees and make reducing costs impossible, reship damaged goods from buyer fraud then punish the seller for that, etc. etc.

Step 5: illegally mine 3rd party data to create knock off products, and use a FAIL (lost goods) to gain even more insight into which products to cannibalize.

Step 6: profit, and hopefully burn in h*ll.

I don't understand why the mods would even want to work at this sociopath of a corporation.

110
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