Effective March 31, 2025, Amazon’s updated Reimbursement Policy for lost or damaged units in its warehouses requires FBA sellers to submit their "sourcing cost" for each ASIN via a designated page in Seller Central. Before sellers submit their costs, Amazon provides its own estimated sourcing cost based on internal parameters—typically 30-40% lower than the actual price most sellers pay to wholesalers. Sellers have the option to dispute this estimate by submitting invoices as proof of their actual costs.

As an FBA seller of electronic products, we followed the process and submitted the actual cost prices for several ASINs, along with invoices from reputed distributors whose documents Amazon has previously accepted. However, 100% of our submitted costs were denied the very next day. Given this outcome, we decided to stop submitting costs for the rest of our inventory, as the process seemed futile.

Key Concern:

From March 31, Amazon will reimburse lost or damaged items based on its own estimated costs, which, in our case, are $100-$200 lower per unit than our actual cost. This could lead to thousands of dollars in losses annually, especially since inventory losses continue to occur within Amazon’s warehouses.

Has anyone else faced a similar issue? Is there any effective solution?