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 Fulfilment 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 fulfilment centres, 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 Fulfilment 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 fulfilment centres, 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.
14 replies
Seller_MQQBHDfSDIKMC
As I'm sure, Amazon is aware, the cost of inventory sent to the FBA includes more than just a manufacturing cost, but also a cost of shipping, a cost of prepping the inventory, as well as some other expenses.
As 3rd party sellers, are we now expected to eat that cost when Amazon loses our inventory, while we have no control over how things are done and handled in the FCs?
Not to mention the cost of a lost opportunity to sell that inventory and make a profit, because we did buy it and sent it to FBA to sell and make a profit, not to get reimbursed with less than we spent to do so.
Could you, please clarify if that is indeed the intent of the change in the Amazon (FBA) inventory reimbursement policy?
Thank you!
Seller_fgBEgnL5gJsWx
Well, this is the final straw for me. From their new tool, it looks like this reimbursement also applies when a customer gets refunded for an order but doesn't actually return the item. When a customer fails to return the item, they will reimburse only the "manufacturing cost" and Amazon will keep the rest of what the customer paid.
I have cases that are 2 months old trying to get reimbursed for incorrectly received items that I can't get support to respond (other than a copy and paste response). At this point i'd even be happy to get "manufacturing cost" returned, even though it would be a huge loss. Admin please see case #16732254431- receiving has been TERRIBLE this season and support has been even worse (if that's at all possible).
Seller_dotifYADa0BWY
Seems like Amazon not only enables customer fraud at our expense, they are joining in and stealing from us FBA sellers. @Seller_MQQBHDfSDIKMC is spot on about all the addiitonal costs (brokerage and inland freight too), this is nothing more than another way to cheat us, plus gaining intelligence on costs to further over reach FBA sellers.
Seller_1JtWN7OO6rhPF
Terrible decision and yet another way to stick it to the sellers
Seller_WVRGljjwKOlpv
so the bottom line is "money' not something else.
If carrier lost our package they at least reimburse shipping cost.
Seller_dotifYADa0BWY
Amazon still doesn't get it, we are not here to fund their inept warehouse staff or the misapplication of "customer damaged" to avoid reimbursement. These are all costs incurred for which they are "RESPONSIBLE" when they screw up 3PL on our behalf. Amazon, this leaves you open to a class action lawsuit by FBA sellers. Just sayin......
Seller_AFtL68XNfQqfA
This policy is unfair. It doesn't make any sense. If an item is delivered to the FC and it goes missing, it is the responsibility of Amazon to provide the full cost of the manufacturing cost or the cost to source the product, including the shipping, handling, customs duties, or other costs. Why are you guys excluding "shipping, handling, customs duties, or other costs." from reimbursing? As an FBA seller, we must deliver the products to the FBA warehouse, and if the product goes missing or lost due to the lack of handling from the Amazon employees, why do we need to suffer?
In reality, Amazon must compensate us more than the manufacturing cost or the cost of sourcing the product, including shipping, handling, customs duties, or other costs. Because it takes a minimum of 3 months to investigate the missing products, so there won't be any sales from those missing units. And reimbursing way below the cost of goods (lol)
@Daryl_Amazondo you really think this policy is fair? who made this policy?
Seller_iDMODRJVedjiw
Thank you for the detailed update regarding the Fulfillment by Amazon (FBA) inventory reimbursement policy. The clarified approach to determining manufacturing costs and the added flexibility for sellers is greatly appreciated. These changes reflect Amazon’s dedication to transparency and efficiency, helping us better manage our operations. Looking forward to leveraging these updates to streamline our processes further!
Seller_iDMODRJVedjiw
Hello Amazon,
Thank you for the updates to the FBA inventory reimbursement policy and for providing a clarified definition of “manufacturing cost.” These adjustments bring much-needed transparency and predictability for sellers, and they are greatly appreciated.
The introduction of automatic reimbursements and tools for managing manufacturing costs will undoubtedly make our operations more streamlined. Thank you again for this valuable information.
Best regards,
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 Fulfilment 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 fulfilment centres, 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 Fulfilment 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 fulfilment centres, 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 Fulfilment 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 fulfilment centres, 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.
14 replies
14 replies
Seller_MQQBHDfSDIKMC
As I'm sure, Amazon is aware, the cost of inventory sent to the FBA includes more than just a manufacturing cost, but also a cost of shipping, a cost of prepping the inventory, as well as some other expenses.
As 3rd party sellers, are we now expected to eat that cost when Amazon loses our inventory, while we have no control over how things are done and handled in the FCs?
Not to mention the cost of a lost opportunity to sell that inventory and make a profit, because we did buy it and sent it to FBA to sell and make a profit, not to get reimbursed with less than we spent to do so.
Could you, please clarify if that is indeed the intent of the change in the Amazon (FBA) inventory reimbursement policy?
Thank you!
Seller_fgBEgnL5gJsWx
Well, this is the final straw for me. From their new tool, it looks like this reimbursement also applies when a customer gets refunded for an order but doesn't actually return the item. When a customer fails to return the item, they will reimburse only the "manufacturing cost" and Amazon will keep the rest of what the customer paid.
I have cases that are 2 months old trying to get reimbursed for incorrectly received items that I can't get support to respond (other than a copy and paste response). At this point i'd even be happy to get "manufacturing cost" returned, even though it would be a huge loss. Admin please see case #16732254431- receiving has been TERRIBLE this season and support has been even worse (if that's at all possible).
Seller_dotifYADa0BWY
Seems like Amazon not only enables customer fraud at our expense, they are joining in and stealing from us FBA sellers. @Seller_MQQBHDfSDIKMC is spot on about all the addiitonal costs (brokerage and inland freight too), this is nothing more than another way to cheat us, plus gaining intelligence on costs to further over reach FBA sellers.
Seller_1JtWN7OO6rhPF
Terrible decision and yet another way to stick it to the sellers
Seller_WVRGljjwKOlpv
so the bottom line is "money' not something else.
If carrier lost our package they at least reimburse shipping cost.
Seller_dotifYADa0BWY
Amazon still doesn't get it, we are not here to fund their inept warehouse staff or the misapplication of "customer damaged" to avoid reimbursement. These are all costs incurred for which they are "RESPONSIBLE" when they screw up 3PL on our behalf. Amazon, this leaves you open to a class action lawsuit by FBA sellers. Just sayin......
Seller_AFtL68XNfQqfA
This policy is unfair. It doesn't make any sense. If an item is delivered to the FC and it goes missing, it is the responsibility of Amazon to provide the full cost of the manufacturing cost or the cost to source the product, including the shipping, handling, customs duties, or other costs. Why are you guys excluding "shipping, handling, customs duties, or other costs." from reimbursing? As an FBA seller, we must deliver the products to the FBA warehouse, and if the product goes missing or lost due to the lack of handling from the Amazon employees, why do we need to suffer?
In reality, Amazon must compensate us more than the manufacturing cost or the cost of sourcing the product, including shipping, handling, customs duties, or other costs. Because it takes a minimum of 3 months to investigate the missing products, so there won't be any sales from those missing units. And reimbursing way below the cost of goods (lol)
@Daryl_Amazondo you really think this policy is fair? who made this policy?
Seller_iDMODRJVedjiw
Thank you for the detailed update regarding the Fulfillment by Amazon (FBA) inventory reimbursement policy. The clarified approach to determining manufacturing costs and the added flexibility for sellers is greatly appreciated. These changes reflect Amazon’s dedication to transparency and efficiency, helping us better manage our operations. Looking forward to leveraging these updates to streamline our processes further!
Seller_iDMODRJVedjiw
Hello Amazon,
Thank you for the updates to the FBA inventory reimbursement policy and for providing a clarified definition of “manufacturing cost.” These adjustments bring much-needed transparency and predictability for sellers, and they are greatly appreciated.
The introduction of automatic reimbursements and tools for managing manufacturing costs will undoubtedly make our operations more streamlined. Thank you again for this valuable information.
Best regards,
Seller_MQQBHDfSDIKMC
As I'm sure, Amazon is aware, the cost of inventory sent to the FBA includes more than just a manufacturing cost, but also a cost of shipping, a cost of prepping the inventory, as well as some other expenses.
As 3rd party sellers, are we now expected to eat that cost when Amazon loses our inventory, while we have no control over how things are done and handled in the FCs?
Not to mention the cost of a lost opportunity to sell that inventory and make a profit, because we did buy it and sent it to FBA to sell and make a profit, not to get reimbursed with less than we spent to do so.
Could you, please clarify if that is indeed the intent of the change in the Amazon (FBA) inventory reimbursement policy?
Thank you!
Seller_MQQBHDfSDIKMC
As I'm sure, Amazon is aware, the cost of inventory sent to the FBA includes more than just a manufacturing cost, but also a cost of shipping, a cost of prepping the inventory, as well as some other expenses.
As 3rd party sellers, are we now expected to eat that cost when Amazon loses our inventory, while we have no control over how things are done and handled in the FCs?
Not to mention the cost of a lost opportunity to sell that inventory and make a profit, because we did buy it and sent it to FBA to sell and make a profit, not to get reimbursed with less than we spent to do so.
Could you, please clarify if that is indeed the intent of the change in the Amazon (FBA) inventory reimbursement policy?
Thank you!
Seller_fgBEgnL5gJsWx
Well, this is the final straw for me. From their new tool, it looks like this reimbursement also applies when a customer gets refunded for an order but doesn't actually return the item. When a customer fails to return the item, they will reimburse only the "manufacturing cost" and Amazon will keep the rest of what the customer paid.
I have cases that are 2 months old trying to get reimbursed for incorrectly received items that I can't get support to respond (other than a copy and paste response). At this point i'd even be happy to get "manufacturing cost" returned, even though it would be a huge loss. Admin please see case #16732254431- receiving has been TERRIBLE this season and support has been even worse (if that's at all possible).
Seller_fgBEgnL5gJsWx
Well, this is the final straw for me. From their new tool, it looks like this reimbursement also applies when a customer gets refunded for an order but doesn't actually return the item. When a customer fails to return the item, they will reimburse only the "manufacturing cost" and Amazon will keep the rest of what the customer paid.
I have cases that are 2 months old trying to get reimbursed for incorrectly received items that I can't get support to respond (other than a copy and paste response). At this point i'd even be happy to get "manufacturing cost" returned, even though it would be a huge loss. Admin please see case #16732254431- receiving has been TERRIBLE this season and support has been even worse (if that's at all possible).
Seller_dotifYADa0BWY
Seems like Amazon not only enables customer fraud at our expense, they are joining in and stealing from us FBA sellers. @Seller_MQQBHDfSDIKMC is spot on about all the addiitonal costs (brokerage and inland freight too), this is nothing more than another way to cheat us, plus gaining intelligence on costs to further over reach FBA sellers.
Seller_dotifYADa0BWY
Seems like Amazon not only enables customer fraud at our expense, they are joining in and stealing from us FBA sellers. @Seller_MQQBHDfSDIKMC is spot on about all the addiitonal costs (brokerage and inland freight too), this is nothing more than another way to cheat us, plus gaining intelligence on costs to further over reach FBA sellers.
Seller_1JtWN7OO6rhPF
Terrible decision and yet another way to stick it to the sellers
Seller_1JtWN7OO6rhPF
Terrible decision and yet another way to stick it to the sellers
Seller_WVRGljjwKOlpv
so the bottom line is "money' not something else.
If carrier lost our package they at least reimburse shipping cost.
Seller_WVRGljjwKOlpv
so the bottom line is "money' not something else.
If carrier lost our package they at least reimburse shipping cost.
Seller_dotifYADa0BWY
Amazon still doesn't get it, we are not here to fund their inept warehouse staff or the misapplication of "customer damaged" to avoid reimbursement. These are all costs incurred for which they are "RESPONSIBLE" when they screw up 3PL on our behalf. Amazon, this leaves you open to a class action lawsuit by FBA sellers. Just sayin......
Seller_dotifYADa0BWY
Amazon still doesn't get it, we are not here to fund their inept warehouse staff or the misapplication of "customer damaged" to avoid reimbursement. These are all costs incurred for which they are "RESPONSIBLE" when they screw up 3PL on our behalf. Amazon, this leaves you open to a class action lawsuit by FBA sellers. Just sayin......
Seller_AFtL68XNfQqfA
This policy is unfair. It doesn't make any sense. If an item is delivered to the FC and it goes missing, it is the responsibility of Amazon to provide the full cost of the manufacturing cost or the cost to source the product, including the shipping, handling, customs duties, or other costs. Why are you guys excluding "shipping, handling, customs duties, or other costs." from reimbursing? As an FBA seller, we must deliver the products to the FBA warehouse, and if the product goes missing or lost due to the lack of handling from the Amazon employees, why do we need to suffer?
In reality, Amazon must compensate us more than the manufacturing cost or the cost of sourcing the product, including shipping, handling, customs duties, or other costs. Because it takes a minimum of 3 months to investigate the missing products, so there won't be any sales from those missing units. And reimbursing way below the cost of goods (lol)
@Daryl_Amazondo you really think this policy is fair? who made this policy?
Seller_AFtL68XNfQqfA
This policy is unfair. It doesn't make any sense. If an item is delivered to the FC and it goes missing, it is the responsibility of Amazon to provide the full cost of the manufacturing cost or the cost to source the product, including the shipping, handling, customs duties, or other costs. Why are you guys excluding "shipping, handling, customs duties, or other costs." from reimbursing? As an FBA seller, we must deliver the products to the FBA warehouse, and if the product goes missing or lost due to the lack of handling from the Amazon employees, why do we need to suffer?
In reality, Amazon must compensate us more than the manufacturing cost or the cost of sourcing the product, including shipping, handling, customs duties, or other costs. Because it takes a minimum of 3 months to investigate the missing products, so there won't be any sales from those missing units. And reimbursing way below the cost of goods (lol)
@Daryl_Amazondo you really think this policy is fair? who made this policy?
Seller_iDMODRJVedjiw
Thank you for the detailed update regarding the Fulfillment by Amazon (FBA) inventory reimbursement policy. The clarified approach to determining manufacturing costs and the added flexibility for sellers is greatly appreciated. These changes reflect Amazon’s dedication to transparency and efficiency, helping us better manage our operations. Looking forward to leveraging these updates to streamline our processes further!
Seller_iDMODRJVedjiw
Thank you for the detailed update regarding the Fulfillment by Amazon (FBA) inventory reimbursement policy. The clarified approach to determining manufacturing costs and the added flexibility for sellers is greatly appreciated. These changes reflect Amazon’s dedication to transparency and efficiency, helping us better manage our operations. Looking forward to leveraging these updates to streamline our processes further!
Seller_iDMODRJVedjiw
Hello Amazon,
Thank you for the updates to the FBA inventory reimbursement policy and for providing a clarified definition of “manufacturing cost.” These adjustments bring much-needed transparency and predictability for sellers, and they are greatly appreciated.
The introduction of automatic reimbursements and tools for managing manufacturing costs will undoubtedly make our operations more streamlined. Thank you again for this valuable information.
Best regards,
Seller_iDMODRJVedjiw
Hello Amazon,
Thank you for the updates to the FBA inventory reimbursement policy and for providing a clarified definition of “manufacturing cost.” These adjustments bring much-needed transparency and predictability for sellers, and they are greatly appreciated.
The introduction of automatic reimbursements and tools for managing manufacturing costs will undoubtedly make our operations more streamlined. Thank you again for this valuable information.
Best regards,
