New Reimbursement Policy and its consequences for Small Sellers
Amazon’s new reimbursement policy is seriously impacting sellers like me. I sell brand-name electronic products, which I purchase from authorized distributors — I am not the manufacturer. I follow all of Amazon’s procedures when shipping inventory to their fulfillment centers, but around 5% of my units consistently go missing within Amazon’s warehouses.
Under the new reimbursement policy that took effect on March 31, 2025, Amazon now reimburses based on the "manufacturing cost" of the product. Unfortunately, in many cases, this amount is roughly 30% lower than what I actually pay to source these products from authorized distributors. This change is creating significant financial losses for my business, and I’m sure many others are experiencing the same.
Amazon has introduced a process where, if you receive a lower reimbursement under the new policy, you can request a cost re-evaluation by submitting authentic proof of your procurement cost. In theory, this sounds fair. However, in practice, when I submit distributor invoices to support my claims, about half the time the requests are denied with a vague response. Instead of a clear explanation, Amazon provides a link to its policy page listing half a dozen potential reasons for denial — and it’s left to the seller to guess which one applies.
The new Reimbursement Policy also explicitly states that Amazon will not reimburse shipping fees or additional charges like labeling, placement, etc., even though these fees are collected upfront. In effect, Amazon is charging sellers for services that, in cases of lost inventory, are never actually rendered.
Personally, I’m not contesting the loss of these add-on fees — I’m willing to absorb those. All I ask is to be reimbursed at my true procurement cost. Unfortunately, my business has become dependent on Amazon, largely because there was a time when Amazon truly supported its sellers — not only reimbursing procurement costs but also adding a reasonable profit margin, treating losses as if the sale had occurred.
I’m not asking for a return to those “good old days.” I’m simply asking Amazon to be realistic and fair to its sellers.
New Reimbursement Policy and its consequences for Small Sellers
Amazon’s new reimbursement policy is seriously impacting sellers like me. I sell brand-name electronic products, which I purchase from authorized distributors — I am not the manufacturer. I follow all of Amazon’s procedures when shipping inventory to their fulfillment centers, but around 5% of my units consistently go missing within Amazon’s warehouses.
Under the new reimbursement policy that took effect on March 31, 2025, Amazon now reimburses based on the "manufacturing cost" of the product. Unfortunately, in many cases, this amount is roughly 30% lower than what I actually pay to source these products from authorized distributors. This change is creating significant financial losses for my business, and I’m sure many others are experiencing the same.
Amazon has introduced a process where, if you receive a lower reimbursement under the new policy, you can request a cost re-evaluation by submitting authentic proof of your procurement cost. In theory, this sounds fair. However, in practice, when I submit distributor invoices to support my claims, about half the time the requests are denied with a vague response. Instead of a clear explanation, Amazon provides a link to its policy page listing half a dozen potential reasons for denial — and it’s left to the seller to guess which one applies.
The new Reimbursement Policy also explicitly states that Amazon will not reimburse shipping fees or additional charges like labeling, placement, etc., even though these fees are collected upfront. In effect, Amazon is charging sellers for services that, in cases of lost inventory, are never actually rendered.
Personally, I’m not contesting the loss of these add-on fees — I’m willing to absorb those. All I ask is to be reimbursed at my true procurement cost. Unfortunately, my business has become dependent on Amazon, largely because there was a time when Amazon truly supported its sellers — not only reimbursing procurement costs but also adding a reasonable profit margin, treating losses as if the sale had occurred.
I’m not asking for a return to those “good old days.” I’m simply asking Amazon to be realistic and fair to its sellers.
1 reply
KJ_Amazon
Hello @Seller_krASjOzmEcPhQ Thank you for sharing that feedback about updates to the FBA inventory reimbursement policy.
We share feedback on this and other policies with the relevant partner teams, and we appreciate you taking the time to provide it.
The new Reimbursement Policy also explicitly states that Amazon will not reimburse shipping fees or additional charges like labeling, placement, etc., even though these fees are collected upfront. In effect, Amazon is charging sellers for services that, in cases of lost inventory, are never actually rendered.
While we recognize the impact, our policy aligns with common practice among other logistics and fulfillment providers to only cover sourcing costs for lost or damaged items before they are ordered by the end customer. To track and validate these costs manually would require substantial effort, and reduce our ability to issue timely reimbursements. However, once an item is identified as lost or damaged, we also promptly stop charging other applicable fees, such as storage fees.
KJ_Amazon
