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Update to Amazon's FBA Inventory Reimbursement Policy

Ridgeline Insights

Effective March 10, 2025, Amazon will reimburse for before-customer order type reimbursements based on Amazon’s definition of ‘manufacturing cost’. This is a significant change in the reimbursement value calculation as it is based on Amazon’s calculation of the reimbursable product’s sales value, less applicable Amazon fees. Here is how Amazon defines manufacturing cost, and before customer order type reimbursements:


  • Reimbursements for lost or damaged inventory are reimbursements considered to be before a customer's order.

  • "Manufacturing cost" includes the cost to source or produce the item but excludes shipping, handling, customs duties, or other expenses such as additional packaging or labeling.


Amazon will estimate manufacturing costs using comparable data, such as comparable products sold by Amazon, by other sellers, and through wholesale channels. If Amazon’s estimated manufacturing cost value is not accurate you can directly provide your own cost details for greater accuracy, likely through an invoice from your supplier.


You can review and manage these costs via the Inventory Defect and Reimbursement portal, with access to a new “Manage Your Manufacturing Cost” page starting in late January 2025.


Amazon will continue to reimburse for products that are lost or damaged after an Amazon customer’s order is based on Amazon’s determination of sales price, less applicable Amazon fees.


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