Amazon updated the reimbursement policy again, and most sellers missed it.
Early 2025 brought a quiet shift to how Amazon handles lost and damaged inventory. No heads-up, no Seller Central alert. Just a policy change buried in the fine print. They scrapped the sales-price model and moved to reimburse sellers based on manufacturing cost.
For most, this means recovering a fraction of what you used to. You lose money on every mishandled unit, and unless your cost tracking is tight, you’re not getting a fair payout.
Let’s break down what changed, what it costs you, and what you need to do to stay ahead.
What Changed in Amazon’s FBA Reimbursement Policy in 2025?
Until recently, Amazon reimbursed sellers based on what it called the “sales price” model. If they lost or damaged your inventory, they paid you back based on how much it was selling for. But that ended.
Amazon now reimburses based on “manufacturing cost” — meaning the cost to produce the item, not what you sold it for. That’s a massive shift. In most cases, it cuts your reimbursements down by 40% to 70%.
If you were getting $25 back on a lost unit, now you might only get $9.
The update was posted in the Reimbursement Policy quietly, with vague language. No alerts. No emails. Just a new rule quietly limiting how Amazon repays you for their mistakes.
Why This Policy Hurts Sellers (More Than You Think)
This isn’t just about smaller checks. It’s about cash flow. Sellers rely on reimbursements to recover losses from:
- FBA warehouse damages
- Lost shipments
- Miscalculated returns
- Overcharged fees
These weren’t bonuses. They were necessary corrections. With the new manufacturing cost model, many sellers are now funding those losses out of pocket.
And here’s the kicker: Amazon decides what your manufacturing cost is. Not you.
Yes, they might let you submit documentation. But if you don’t have strong systems in place to track every SKU’s landed cost, invoice trail, and historical data, you’ll be stuck with whatever estimate Amazon plugs in.
Who Is Most Affected by the Reimbursement Shift?
If you sell high-margin products, this change hits you the hardest.
Private label sellers, in particular, are feeling the squeeze. You may source a product for $6, land it for $9, and retail it for $29. Amazon used to reimburse you close to $25 if they lost it. Now? You’re lucky if you get $9.50—and only if you have clean documentation.
Sellers in beauty, supplements, apparel, and branded electronics are taking the brunt of it. Meanwhile, low-margin, high-volume resellers are less impacted because their margins were already tight.
How Do You Calculate Your Manufacturing Cost the Way Amazon Wants?
Amazon doesn’t want your word for it. They want traceable cost data:
- Supplier invoices (with item-level breakdowns)
- Proof of payment
- Freight and landing costs (itemized)
- Per-unit calculations
If your supplier sends one lump invoice for 20 SKUs, Amazon may reject it. If your freight is bundled and not allocated per item, you might lose out.
Documentation isn’t optional anymore—it’s the difference between getting reimbursed or not.
Where Sellers Are Losing Money Without Realizing It
Reimbursements are one of the most overlooked areas in a seller’s business. But with this update, they’ve become a major leak.
You could be losing hundreds or thousands a month to:
- Unreimbursed FBA returns
- Denied claims due to weak documentation
- Amazon undervaluing your cost basis
- Late claims that fall outside Amazon’s filing window
If you’re not auditing Amazon’s every move, your accounting books will look profitable while your cash flow bleeds. It’s no longer safe to assume Amazon gets it right.
How to File a Strong FBA Reimbursement Claim in 2025
Amazon has tightened its claim requirements, but you can still fight back with clean evidence:
- Download your FBA inventory reconciliation and reimbursement reports.
- Cross-check units marked as lost, damaged, or returned without credit.
- Calculate your actual landed manufacturing cost.
- Attach proof (invoices, payments, freight allocations).
- Submit your case with context, not emotion.
And remember, your case manager is a person, not a bot. Clean documentation and professional tone go further than rants or screenshots.
Can Automation Tools Help With FBA Reimbursements?
Yes, and now they’re no longer optional.
Most Amazon sellers don’t have the time or background to manually dig through years of reimbursements, costs, and claim histories. That’s where Manage Amazon steps in. We offer full-service Amazon FBA automation, including:
- Claim filing and tracking
- Cost-of-goods analysis and documentation
- Ongoing audits of FBA errors
- Policy compliance for 2025 standards
Instead of leaving money on the table, sellers using Manage Amazon recover more, stay compliant, and scale without the constant back-office chaos.
If you’ve ever struggled with Amazon listing hijacking, account suspensions, or trying to increase product sales, the last thing you want is to lose more money to unfiled reimbursements.
What Should Amazon Sellers Do Now?
Here’s your action list:
- Audit the last 18 months of your reimbursements
- Build a SKU-level cost tracking system
- Set up documentation protocols for suppliers and freight
- Start using a reimbursement service like Sellerise or Manage Amazon
This isn’t optional anymore. If you want to stay profitable in 2025, you need a smarter backend.
FAQs About Amazon FBA Reimbursements
Why did Amazon change how reimbursements are calculated?
Amazon switched to a manufacturing cost model to standardize payouts and reduce inflated claims. This means sellers now get reimbursed based on production cost, not sales price.
Where can I find my reimbursement reports in Seller Central?
Go to the Reports tab in Seller Central, select Fulfillment, then choose the Reimbursements section. From there, download your inventory adjustments and payment details.
What if I don’t know my exact manufacturing cost?
Manufacturing cost can be calculated using supplier invoices, freight charges, and per-unit landing expenses. If tracking this feels messy, services like Manage Amazon can handle it for you.
Can I get reimbursed for FBA returns that weren’t restocked?
Yes, but only if there’s proof the return was never resold or credited. These cases often get missed, so it’s important to audit returns and submit claims with solid documentation.
Final Word:
Amazon isn’t in the business of protecting your margins. Their priority is the customer. That means sellers are on their own when it comes to recovering losses.
With the new manufacturing cost reimbursement model, the burden is on you to prove every penny. And if you’re not prepared, Amazon will pay you the minimum.
Get your cost data in shape. Start auditing every claim. And if you’re tired of fighting Amazon over missing units, talk to Manage Amazon.
