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Amazon FBA Inventory Reimbursement Policy Update 2025

What Sellers Need to Know

As of March 10, 2025, Amazon is implementing a significant update to its Fulfillment by Amazon (FBA) inventory reimbursement policy. This change aims to provide sellers with greater transparency and predictability in how reimbursements for lost or damaged inventory are calculated. Here’s everything you need to know about the update and how it may impact your FBA business.

What’s Changing?

Amazon will now base reimbursements for lost or damaged inventory on the manufacturing cost of the affected products. Here’s what this means:

  1. Definition of Manufacturing Cost:
    Manufacturing cost refers to the expense of sourcing a product from a manufacturer, wholesaler, reseller, or producing it yourself. It excludes additional costs such as shipping, handling, customs duties, and other related expenses.
  2. Two Options for Sellers:
    • Amazon’s Estimate: Amazon will calculate an estimate for your product’s manufacturing cost based on comparable items sold across Amazon and wholesale channels.
    • Seller-Provided Costs: Sellers can directly input their own manufacturing costs for greater accuracy.

How to Manage Manufacturing Costs

Starting in late January 2025, sellers will have access to a new “Manage Your Manufacturing Cost” page within the Inventory Defect and Reimbursement portal. This tool allows you to view, update, and manage your manufacturing costs with ease, ensuring you remain in control of your reimbursement calculations.

Why This Change Matters

This update provides sellers with:

  • Increased Transparency: A clear and consistent method for reimbursement.
  • Improved Control: The ability to directly influence how costs are determined.
  • Streamlined Operations: Automatic reimbursements for items lost in Amazon’s fulfillment centers, eliminating the need to submit claims.

Reimbursement for Customer-Damaged Items

While the new policy applies to lost or damaged items within Amazon’s fulfillment network, reimbursements for products damaged after customer orders will continue to follow the existing process. Sellers will receive the sales price minus applicable fees for these cases.

What Should Sellers Do Now?

  • Prepare Your Cost Data: Start gathering accurate manufacturing cost information for your products.
  • Monitor Policy Updates: Stay informed about changes through Amazon’s official policy page.
  • Leverage Fulfillment Solutions: Partner with a reliable 3PL service like Shipontime to streamline your inventory management and minimize risks.

How Shipontime Can Help

At Shipontime, we specialize in providing tailored fulfillment solutions to ensure your business runs smoothly. Our expertise in inventory management and FBA prep services can help you adapt to Amazon’s policy changes effortlessly. From accurate labeling to robust tracking systems, we’ve got you covered.


Optimize Your FBA Experience Today
Stay ahead of the game by partnering with Shipontime. Contact us to learn more about our fulfillment and inventory management solutions tailored for Amazon sellers.

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