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:
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.
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:
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.
Will this reimbursement include shipping I paid to the manufacture and shipping to Amazon?
I doubt it.
So glad I got out of FBA.
Now we know why you did not raise fees for 2025.
THIS IS A TROJAN HORSE TO OBTAIN THE CONFIDENTIAL MANUFACTURING COSTS, METHODS, MATERIALS, SUPPLIERS, EQUIPMENT, ETC. OF EVERY PRODUCT SO AMAZON CAN SELL COMPETING PRODUCTS
There's also a problem with using one seller's confidential information to create costs applicable to a different seller. ("comprehensive evaluation of comparable products ... by other sellers"
It unfairly penalizes sellers who are cost efficient.
Are the costs for my California business being compared to Chinese government subsidized costs for Chinese sellers?
It improperly commoditizes everything, ignoring important issues such as IP. Surely Amazon doesn't think the value of the name "Amazon" is worth the same as "Bob's Marketplace" - but the cost of brand creation and IP is expensive, not quantifiable on an individual product level.
If I create the AmazonXXX.com online marketplace Amazon is agreeing it can't sue me for damages beyond the $10 cost of the domain?
Look at it this way, if Amazon is sued for not paying an employee it can't claim it only owes what Bob's Marketplace would have paid their employee.
If Amazon loses/damages a product the damages owed are not manufacturing cost but lost profits. Is Amazon including labor and amortized costs such as equipment? There is also the FBA inbound fee and portion of inbound shipping that needs reimbursing.
This is completely insane. There is a SIMPLE method of simply paying the sales price. There is a ridiculously EXPENSIVE method of making a "comprehensive evaluation" of every product - there are millions - on Amazon.
Amazon will be committing fraud and be in breach of contract if it does not make a "comprehensive evaluation" of every product. It's hopelessly vague, improper, most likely will generate full time employment for lot of attorneys.
This literally incentivizes Amazon to lose our inventory. They lose it, reimburse us pennies on the dollar, find it, and, since they've already reimbursed us, add it to their own inventory to sell themselves for full market value. Cha-ching.
I swear amazon sits around all day and says "how can we screw our sellers over today? How can we make it more likely for them to face serious financial ruin doing business on our platform?"
Every single new policy these animals introduce make it worse and harder for sellers. It's legalized theft. In my 11 years here I cannot think of ONE new policy (especially in the last couple of years) that has actually been good for sellers. Every single new policy is basically a slap in the face
Luckily walmart's third party seller program is picking up steam. Over there they reimburse you if you use WFS no questions asked at full sales value. How amazon once was.
Is amazon ran by people who have ZERO experience in retail? The overwhelming majority of retailers do NOT manufacture the products they sell. So reimbursing them only a manufacturing cost for a mistake that YOU made is THEFT.
Also, every time these idiots say "we calculate our estimate by evaluating blah blah blah" it basically means "we will give you as little as possible". They do this to me when they deactivate my listings based on price because their stupid robots think I should be selling the items for less. Not taking into account ALL the fees I have to pay here.
Amazon used to be awesome. It was a wonderful thing that bezos created. A system that gave any one of us with a strong work ethic and drive to make it. Now it has become an absolute nightmare. I'm happy walmart is gaining on them. This platform is such garbage now.
Unfortunately all the customers are still here. That's why we're all here. But if customer service continues to be as bad as seller support (in a lot of cases it is), customers will be looking for other options in no time. And sellers will leave (a lot have already left, or gone bankrupt thanks to amazon). And amazon will no longer be "the everything store".
Ebay made this mistake decades ago, screwing over sellers left and right, and amazon came along and took most of their sellers. Now history is repeating itself.
@Jim_Amazon I am a bit confused - Can we still send in an invoice showing our cost and then get reimbursed for it at that price? What if we buy from a manufacturer and resell (we don't manufacture the product ourselves)? Amazon will still reimburse us at cost for lost inventory if we show our cost correct?
So if I pay to purchase an item, pay to have it prepped to Amazons specification, pay to have it shipped to Amazon where it's lost, I only get reimbursed for the initial cost. That's shady.
Let's say I provide the true cost of the item. What's to say you won't "oops" lose it on purpose because you realize that by paying me only the manufacturing cost you came out ahead because you earned money on shipping, you hurt me financially directly, AND you prevented me, a competitor, from competing with a product that you Amazon sells a competitor for?
Yet another reason as to why FBA is for losers, only losers can not fulfil orders by them self,
you have a fake business if you use FBA.
FBA is a scam.
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:
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.
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:
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.
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:
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.
Will this reimbursement include shipping I paid to the manufacture and shipping to Amazon?
I doubt it.
So glad I got out of FBA.
Now we know why you did not raise fees for 2025.
THIS IS A TROJAN HORSE TO OBTAIN THE CONFIDENTIAL MANUFACTURING COSTS, METHODS, MATERIALS, SUPPLIERS, EQUIPMENT, ETC. OF EVERY PRODUCT SO AMAZON CAN SELL COMPETING PRODUCTS
There's also a problem with using one seller's confidential information to create costs applicable to a different seller. ("comprehensive evaluation of comparable products ... by other sellers"
It unfairly penalizes sellers who are cost efficient.
Are the costs for my California business being compared to Chinese government subsidized costs for Chinese sellers?
It improperly commoditizes everything, ignoring important issues such as IP. Surely Amazon doesn't think the value of the name "Amazon" is worth the same as "Bob's Marketplace" - but the cost of brand creation and IP is expensive, not quantifiable on an individual product level.
If I create the AmazonXXX.com online marketplace Amazon is agreeing it can't sue me for damages beyond the $10 cost of the domain?
Look at it this way, if Amazon is sued for not paying an employee it can't claim it only owes what Bob's Marketplace would have paid their employee.
If Amazon loses/damages a product the damages owed are not manufacturing cost but lost profits. Is Amazon including labor and amortized costs such as equipment? There is also the FBA inbound fee and portion of inbound shipping that needs reimbursing.
This is completely insane. There is a SIMPLE method of simply paying the sales price. There is a ridiculously EXPENSIVE method of making a "comprehensive evaluation" of every product - there are millions - on Amazon.
Amazon will be committing fraud and be in breach of contract if it does not make a "comprehensive evaluation" of every product. It's hopelessly vague, improper, most likely will generate full time employment for lot of attorneys.
This literally incentivizes Amazon to lose our inventory. They lose it, reimburse us pennies on the dollar, find it, and, since they've already reimbursed us, add it to their own inventory to sell themselves for full market value. Cha-ching.
I swear amazon sits around all day and says "how can we screw our sellers over today? How can we make it more likely for them to face serious financial ruin doing business on our platform?"
Every single new policy these animals introduce make it worse and harder for sellers. It's legalized theft. In my 11 years here I cannot think of ONE new policy (especially in the last couple of years) that has actually been good for sellers. Every single new policy is basically a slap in the face
Luckily walmart's third party seller program is picking up steam. Over there they reimburse you if you use WFS no questions asked at full sales value. How amazon once was.
Is amazon ran by people who have ZERO experience in retail? The overwhelming majority of retailers do NOT manufacture the products they sell. So reimbursing them only a manufacturing cost for a mistake that YOU made is THEFT.
Also, every time these idiots say "we calculate our estimate by evaluating blah blah blah" it basically means "we will give you as little as possible". They do this to me when they deactivate my listings based on price because their stupid robots think I should be selling the items for less. Not taking into account ALL the fees I have to pay here.
Amazon used to be awesome. It was a wonderful thing that bezos created. A system that gave any one of us with a strong work ethic and drive to make it. Now it has become an absolute nightmare. I'm happy walmart is gaining on them. This platform is such garbage now.
Unfortunately all the customers are still here. That's why we're all here. But if customer service continues to be as bad as seller support (in a lot of cases it is), customers will be looking for other options in no time. And sellers will leave (a lot have already left, or gone bankrupt thanks to amazon). And amazon will no longer be "the everything store".
Ebay made this mistake decades ago, screwing over sellers left and right, and amazon came along and took most of their sellers. Now history is repeating itself.
@Jim_Amazon I am a bit confused - Can we still send in an invoice showing our cost and then get reimbursed for it at that price? What if we buy from a manufacturer and resell (we don't manufacture the product ourselves)? Amazon will still reimburse us at cost for lost inventory if we show our cost correct?
So if I pay to purchase an item, pay to have it prepped to Amazons specification, pay to have it shipped to Amazon where it's lost, I only get reimbursed for the initial cost. That's shady.
Let's say I provide the true cost of the item. What's to say you won't "oops" lose it on purpose because you realize that by paying me only the manufacturing cost you came out ahead because you earned money on shipping, you hurt me financially directly, AND you prevented me, a competitor, from competing with a product that you Amazon sells a competitor for?
Yet another reason as to why FBA is for losers, only losers can not fulfil orders by them self,
you have a fake business if you use FBA.
FBA is a scam.
Will this reimbursement include shipping I paid to the manufacture and shipping to Amazon?
I doubt it.
So glad I got out of FBA.
Will this reimbursement include shipping I paid to the manufacture and shipping to Amazon?
I doubt it.
So glad I got out of FBA.
Now we know why you did not raise fees for 2025.
Now we know why you did not raise fees for 2025.
THIS IS A TROJAN HORSE TO OBTAIN THE CONFIDENTIAL MANUFACTURING COSTS, METHODS, MATERIALS, SUPPLIERS, EQUIPMENT, ETC. OF EVERY PRODUCT SO AMAZON CAN SELL COMPETING PRODUCTS
There's also a problem with using one seller's confidential information to create costs applicable to a different seller. ("comprehensive evaluation of comparable products ... by other sellers"
It unfairly penalizes sellers who are cost efficient.
Are the costs for my California business being compared to Chinese government subsidized costs for Chinese sellers?
It improperly commoditizes everything, ignoring important issues such as IP. Surely Amazon doesn't think the value of the name "Amazon" is worth the same as "Bob's Marketplace" - but the cost of brand creation and IP is expensive, not quantifiable on an individual product level.
If I create the AmazonXXX.com online marketplace Amazon is agreeing it can't sue me for damages beyond the $10 cost of the domain?
Look at it this way, if Amazon is sued for not paying an employee it can't claim it only owes what Bob's Marketplace would have paid their employee.
If Amazon loses/damages a product the damages owed are not manufacturing cost but lost profits. Is Amazon including labor and amortized costs such as equipment? There is also the FBA inbound fee and portion of inbound shipping that needs reimbursing.
This is completely insane. There is a SIMPLE method of simply paying the sales price. There is a ridiculously EXPENSIVE method of making a "comprehensive evaluation" of every product - there are millions - on Amazon.
Amazon will be committing fraud and be in breach of contract if it does not make a "comprehensive evaluation" of every product. It's hopelessly vague, improper, most likely will generate full time employment for lot of attorneys.
THIS IS A TROJAN HORSE TO OBTAIN THE CONFIDENTIAL MANUFACTURING COSTS, METHODS, MATERIALS, SUPPLIERS, EQUIPMENT, ETC. OF EVERY PRODUCT SO AMAZON CAN SELL COMPETING PRODUCTS
There's also a problem with using one seller's confidential information to create costs applicable to a different seller. ("comprehensive evaluation of comparable products ... by other sellers"
It unfairly penalizes sellers who are cost efficient.
Are the costs for my California business being compared to Chinese government subsidized costs for Chinese sellers?
It improperly commoditizes everything, ignoring important issues such as IP. Surely Amazon doesn't think the value of the name "Amazon" is worth the same as "Bob's Marketplace" - but the cost of brand creation and IP is expensive, not quantifiable on an individual product level.
If I create the AmazonXXX.com online marketplace Amazon is agreeing it can't sue me for damages beyond the $10 cost of the domain?
Look at it this way, if Amazon is sued for not paying an employee it can't claim it only owes what Bob's Marketplace would have paid their employee.
If Amazon loses/damages a product the damages owed are not manufacturing cost but lost profits. Is Amazon including labor and amortized costs such as equipment? There is also the FBA inbound fee and portion of inbound shipping that needs reimbursing.
This is completely insane. There is a SIMPLE method of simply paying the sales price. There is a ridiculously EXPENSIVE method of making a "comprehensive evaluation" of every product - there are millions - on Amazon.
Amazon will be committing fraud and be in breach of contract if it does not make a "comprehensive evaluation" of every product. It's hopelessly vague, improper, most likely will generate full time employment for lot of attorneys.
This literally incentivizes Amazon to lose our inventory. They lose it, reimburse us pennies on the dollar, find it, and, since they've already reimbursed us, add it to their own inventory to sell themselves for full market value. Cha-ching.
This literally incentivizes Amazon to lose our inventory. They lose it, reimburse us pennies on the dollar, find it, and, since they've already reimbursed us, add it to their own inventory to sell themselves for full market value. Cha-ching.
I swear amazon sits around all day and says "how can we screw our sellers over today? How can we make it more likely for them to face serious financial ruin doing business on our platform?"
Every single new policy these animals introduce make it worse and harder for sellers. It's legalized theft. In my 11 years here I cannot think of ONE new policy (especially in the last couple of years) that has actually been good for sellers. Every single new policy is basically a slap in the face
Luckily walmart's third party seller program is picking up steam. Over there they reimburse you if you use WFS no questions asked at full sales value. How amazon once was.
Is amazon ran by people who have ZERO experience in retail? The overwhelming majority of retailers do NOT manufacture the products they sell. So reimbursing them only a manufacturing cost for a mistake that YOU made is THEFT.
Also, every time these idiots say "we calculate our estimate by evaluating blah blah blah" it basically means "we will give you as little as possible". They do this to me when they deactivate my listings based on price because their stupid robots think I should be selling the items for less. Not taking into account ALL the fees I have to pay here.
Amazon used to be awesome. It was a wonderful thing that bezos created. A system that gave any one of us with a strong work ethic and drive to make it. Now it has become an absolute nightmare. I'm happy walmart is gaining on them. This platform is such garbage now.
Unfortunately all the customers are still here. That's why we're all here. But if customer service continues to be as bad as seller support (in a lot of cases it is), customers will be looking for other options in no time. And sellers will leave (a lot have already left, or gone bankrupt thanks to amazon). And amazon will no longer be "the everything store".
Ebay made this mistake decades ago, screwing over sellers left and right, and amazon came along and took most of their sellers. Now history is repeating itself.
I swear amazon sits around all day and says "how can we screw our sellers over today? How can we make it more likely for them to face serious financial ruin doing business on our platform?"
Every single new policy these animals introduce make it worse and harder for sellers. It's legalized theft. In my 11 years here I cannot think of ONE new policy (especially in the last couple of years) that has actually been good for sellers. Every single new policy is basically a slap in the face
Luckily walmart's third party seller program is picking up steam. Over there they reimburse you if you use WFS no questions asked at full sales value. How amazon once was.
Is amazon ran by people who have ZERO experience in retail? The overwhelming majority of retailers do NOT manufacture the products they sell. So reimbursing them only a manufacturing cost for a mistake that YOU made is THEFT.
Also, every time these idiots say "we calculate our estimate by evaluating blah blah blah" it basically means "we will give you as little as possible". They do this to me when they deactivate my listings based on price because their stupid robots think I should be selling the items for less. Not taking into account ALL the fees I have to pay here.
Amazon used to be awesome. It was a wonderful thing that bezos created. A system that gave any one of us with a strong work ethic and drive to make it. Now it has become an absolute nightmare. I'm happy walmart is gaining on them. This platform is such garbage now.
Unfortunately all the customers are still here. That's why we're all here. But if customer service continues to be as bad as seller support (in a lot of cases it is), customers will be looking for other options in no time. And sellers will leave (a lot have already left, or gone bankrupt thanks to amazon). And amazon will no longer be "the everything store".
Ebay made this mistake decades ago, screwing over sellers left and right, and amazon came along and took most of their sellers. Now history is repeating itself.
@Jim_Amazon I am a bit confused - Can we still send in an invoice showing our cost and then get reimbursed for it at that price? What if we buy from a manufacturer and resell (we don't manufacture the product ourselves)? Amazon will still reimburse us at cost for lost inventory if we show our cost correct?
@Jim_Amazon I am a bit confused - Can we still send in an invoice showing our cost and then get reimbursed for it at that price? What if we buy from a manufacturer and resell (we don't manufacture the product ourselves)? Amazon will still reimburse us at cost for lost inventory if we show our cost correct?
So if I pay to purchase an item, pay to have it prepped to Amazons specification, pay to have it shipped to Amazon where it's lost, I only get reimbursed for the initial cost. That's shady.
Let's say I provide the true cost of the item. What's to say you won't "oops" lose it on purpose because you realize that by paying me only the manufacturing cost you came out ahead because you earned money on shipping, you hurt me financially directly, AND you prevented me, a competitor, from competing with a product that you Amazon sells a competitor for?
So if I pay to purchase an item, pay to have it prepped to Amazons specification, pay to have it shipped to Amazon where it's lost, I only get reimbursed for the initial cost. That's shady.
Let's say I provide the true cost of the item. What's to say you won't "oops" lose it on purpose because you realize that by paying me only the manufacturing cost you came out ahead because you earned money on shipping, you hurt me financially directly, AND you prevented me, a competitor, from competing with a product that you Amazon sells a competitor for?
Yet another reason as to why FBA is for losers, only losers can not fulfil orders by them self,
you have a fake business if you use FBA.
FBA is a scam.
Yet another reason as to why FBA is for losers, only losers can not fulfil orders by them self,
you have a fake business if you use FBA.
FBA is a scam.