New effective date for FBA inventory reimbursement policy
The updated Fulfillment by Amazon (FBA) inventory reimbursement policy will now go into effect on March 31, 2025, instead of March 10, 2025. We made this change to give you more time to manage your costs through the Manage Your Sourcing Cost page in the Inventory Defect and Reimbursement portal.
Since January, we've been gradually rolling out the Manage Your Sourcing Cost page to ensure a high-quality experience. All sellers will have access to this page by February 28, 2025, giving you time to review and submit your costs before the new policy takes effect.
For more information about the FBA inventory reimbursement policy, go to Changes to program policies.
66 replies
Seller_Xm9ZXdbDd6NZw
I've never been so happy that my amazon sales are down. Since I make my own items I could be adding new here to try and gain more amazon sales. But with all of amazon's changes I refuse to. No doubt I will lose out on some income. But it's just not worth it anymore. My last new to amazon products were listed almost a year ago. I'll keep listing products on my website and etsy where they also don't make it super easy for competition to find best sellers to copy and undercut (which is what has killed sales to begin with so no point in making new stuff).
Even with less sales and inventory, warehouse lost was 50 items the last 3 months. Warehouse damage is another 15. At an average price of $10 that's $650 retail that amazon will be paying pennies on. Thanks but no thanks.
Just found the reimbursement costs. Of course it's all AI. Most of my items are identical in size/cost. Amazon has them anywhere from $1.58 to $4.30. Which is more than I expected. But far from acceptable. Then a product that is different and costs more, they have it just barely higher than the others. AI is not intelligent. Another product line is offering about $3 which doesn't come close to covering manufacture costs.
Seller_z56zmYqo8FoQN
You guys should face class action lawsuits and executives should be incarcerated at Amazon, this is theft in plain site and its disgusting
Seller_Njs9EOk09UnvP
This is all so very convenient for the company that is constantly losing my items at their warehouses. If you don’t want to pay the true value for the items that you’re losing, maybe train your people to be better? But no, instead charg us pennies on the dollar for the manufacturing cost, knowing full well that it won’t cover the actual cost paid plus all the extras involved. Corporate greed at its finest people!
Seller_7WVJctILMqzwU
Alright... Filed 119 updated sourcing costs out of 1500 of my ASINS, there goes a couple hours I would like back.
So far laughably only 37 were approved the next day, 34 are still under review, and 48 were flat out denied.
So hilarious that there is no description or picture next to the SKU link, so you basically have an extra step of clicking into the link to see what it is. I then have to dig through invoices to enter the sourcing cost. Enter the sourcing cost and then it goes to review, if they come back and ask you to submit your documents then I have to go back and search for that invoice again because well you cant submit your documents with your sourcing cost price update, that would be too easy.
A third of the time the sourcing cost update is flat out denied with no option to enter your documents to prove your sourcing cost. You can try entering the price again in 30 days with no other recourse, its just denied and that is it. You cant make this stuff up.
So how bout some guidance on what to do about the denied ones? I have proof but no option to submit it.
@Jim_Amazon any thoughts?
Seller_pAiS7b4evCQoa
I am having a problem with the new policy. While Amazon stated that sourcing costs would only be used for lost/damaged items before they are sold, they are not keeping to that policy. I have had several FBA returns that were stolen/swapped, and Amazon is only reimbursing sourcing costs and not the original order amount (minus the fees). This is a terrible error and will cause even further losses! Anyone else seeing this? Mods, please help!
Seller_7WVJctILMqzwU
Wow, I was reimbursed $28.43 for a Fraudulent FBA Return where the buyer returned a materially different item.
Buyer was refunded $88.52 which is what I should have gotten as the reimbursement. I requested a Re-Evaluation of the reimbursement and was directed to the new horrendous new Reimbursement Revaluation Tool:
https://sellercentral.amazon.com/help/hub/solution/WF_fba_reimbursement_revaluation
Behold, you enter your reimbursement ID and provide your invoice and you get this denial!
"Upon reviewing your request for re-evaluation, it has been found that your account status is not in good standing across the stores in which you sell. Your re-evaluation request has therefore been declined. Our selling policies and code of conduct require that sellers act fairly and honestly in Amazon’s store to ensure a safe buying and selling experience. Obligations in the code of conduct include that you must provide accurate information to Amazon and our customers and update the information if it changes. Violating the Code of Conduct, Selling Policies or any other Amazon policies may result in actions against your account, such as cancellation of listings and removal of selling privileges."
This arbitrary denial that does not specify exactly why your being flagged for violating their code of conduct, no recourse, no ability to challenge. I go to all my health pages across my stores and they all say Healthy, go figure.
Basically you take what we give you despite our policy saying something different.
According to Amazon reimbursement policy:
Post-Order Lost or Damaged Events If we elect to reimburse you for a customer return claim, the value of the reimbursement is based on the refund or replacement given to the customer on your FBA order.
So much for "this does not affect order reimbursement" as the $28.43 is the same one found on the estimated sourcing, thank you Amazon for your transparency.
Amazon's updated Fulfilled by Amazon (FBA) reimbursement policy, effective March 2025, introduces significant changes that are likely causing frustration among sellers. Here's a breakdown of the key updates and their implications:
Key Changes in the FBA Reimbursement Policy
Reimbursement Based on Manufacturing Costs: Previously, reimbursements were calculated based on the product's selling price, which included revenue potential and covered shipping, handling, and other associated costs.
Under the new policy, reimbursements are limited to the manufacturing cost (i.e., the cost to source or produce the product). This excludes shipping, customs duties, and other operational expenses.
Stricter Claim Deadlines: The timeframe for filing claims has been significantly reduced from 18 months to just 60 days in most cases. This requires sellers to act quickly and maintain meticulous inventory records.
Automated and Manual Claims: Amazon now automates claims for common issues like lost inventory or warehouse damage. However, more complex cases still require manual intervention, adding a layer of complexity for sellers.
Seller-Provided Cost Data: Sellers can provide their own manufacturing cost data through Amazon’s "Manage Your Sourcing Cost" portal. If no data is submitted, Amazon will use its own cost estimate, which may not accurately reflect a seller’s actual expenses.
Eligibility Criteria: Amazon has introduced stricter criteria for determining whether a seller qualifies for reimbursement. This includes evaluating the condition of inventory upon receipt and the circumstances of loss or damage.
Implications for Sellers
Lower Reimbursements: By excluding shipping and related costs, many sellers will receive significantly less compensation than under the previous system. For high-margin products or items with high logistical costs, this change could severely impact profitability.
Increased Administrative Burden: Sellers must now maintain detailed manufacturing cost records and act swiftly within shorter claim windows to avoid missing reimbursements.
