Amazon just pressed pause on a major change—one that could quietly wipe out your reimbursements if you’re not ready. In March 2025, Amazon planned to roll out a new cost-based reimbursement policy for FBA sellers. But after seller pushback, they delayed it. That delay isn’t a free pass. It’s a warning.
This update impacts every third-party (3P) seller using FBA. If you aren’t sure what it means, or why Amazon delaying the reimbursement update matters, this guide breaks it all down in simple terms. More importantly, it shows how to prepare—before it’s too late.
How Does the Amazon Reimbursement Policy Work?
Right now, when Amazon loses or damages your FBA inventory, they reimburse you based on an “estimated” value—usually a rough market price. That often means decent payouts. But starting soon, Amazon wants something different: proof.
So, what is cost based reimbursement? It’s simple: under this model, sellers must provide their actual sourcing costs to get repaid. If you don’t submit these, Amazon will estimate your cost using similar products. And here’s the kicker: those estimates are often way off. In some cases, sellers could get less than 25% of what they should.
This isn’t just a paperwork change. It’s a shift in how Amazon protects (or doesn’t protect) your profits.
Why Amazon Delayed the Reimbursement Policy Update
The new policy was set to go live in March 2025. But after a flood of complaints from sellers and partner tools, Amazon hit pause. Sellers weren’t ready. The systems weren’t ready. And the backlash was loud.
Still, Amazon made one thing clear: this delay is temporary. The cost-based model is coming. Sellers now have a short window to prepare, fix their sourcing documentation, and avoid getting caught when the update finally rolls out.
What the Delay Means for 3P Sellers
Right now, you have a choice. You can wait and scramble when the new rules hit. Or, you can use this breathing room to get ahead.
Here’s why it matters:
- You’ll need to prove your cost-of-goods.
- You’ll need to upload documentation through Amazon Seller Central.
- If you don’t, Amazon will lowball you with their own estimate.
That estimate might seem random, but it isn’t. Amazon compares your listing to similar ones—not your brand, not your features, just the general product type. If your private label product costs $15 to source, but Amazon guesses it at $4 based on “other sellers on Amazon,” you eat the loss.
Also, order cancellation from Amazon can disrupt your reimbursement eligibility, especially if inventory doesn’t properly check back in.
Why This Shift Hits Sellers Hard
This policy is especially tough on:
- Private label sellers with unique SKUs and higher costs.
- Sellers using overseas manufacturers, where receipts and invoices aren’t as standard.
- High-volume FBA sellers who rely on quick, bulk restocks.
These sellers often can’t pause to document every cost. That’s why many will simply take the hit. But that hit adds up. Especially as Amazon FBA reimbursements grow more complicated and less generous without proof.
Important Considerations for FBA Sellers
There’s more to think about:
- Order cancellation from Amazon can mess with your reimbursement timelines.
- If you’re part of the Amazon transparency program, your barcoded units may be easier to trace—but you still need sourcing proof.
- Using Amazon reimbursement software might help automate some of the claim process, but it won’t create cost documents for you.
And if you’re leaning on Amazon Automation services, make sure those agencies or VAs know about this change. Common mistakes sellers make when going for Amazon Automation include ignoring backend updates like this.
Your Options Under the New Policy
When the policy rolls out, sellers will see a prompt inside Seller Central to submit sourcing cost info. You can upload invoices, supplier receipts, or manufacturing agreements.
You can also:
- Pre-load sourcing costs directly in your FBA listings (when that option becomes available).
- Use tools or spreadsheets to track and attach cost per SKU.
- Partner with sourcing platforms that offer invoice-ready documentation.
Steps to Take Before the Policy Goes Live
Here’s how to get ahead of the update:
- Gather sourcing docs for every FBA product you sell.
- Store them safely in a cloud system (Dropbox, Google Drive, etc.).
- Match SKUs to invoices in a clean spreadsheet.
- Review your reimbursements history to see where you’re most exposed.
- Train your team, VA, or Amazon Automation provider on the new workflow.
One of the common mistakes sellers make when going for the Amazon Automation model is expecting those systems to manage reimbursements end-to-end. But they usually won’t chase cost data unless you push them to.
Potential Challenges for 3P Sellers
Some common issues you might face:
- Invoices not accepted due to missing data (e.g., date, supplier address).
- Multiple SKUs on a single invoice make it hard to split costs.
- Older products without proper documentation.
You’ll also need to rethink your refund and reimbursement approach. Many sellers rely on automated tools for amazon seller reimbursement tracking, but those tools don’t verify cost documents. Human review is still key.
How to Submit Your Sourcing Costs
Amazon will prompt you when it needs proof. You’ll be able to:
- Use the Reimbursement Dashboard in Seller Central.
- Upload cost invoices in PDF or image format.
- Add notes or clarifications if needed.
It’s not hard, but it takes planning. And if you’re juggling 100+ SKUs, it can become overwhelming fast. That’s where tools and processes come in.
What 3P Sellers Can Do to Protect Their Profits
Start by assuming you won’t be reimbursed fairly—unless you take action.
Then:
- Audit your current FBA inventory.
- Review your cost-per-unit data.
- Evaluate whether you need an amazon reimbursement software to manage claims more efficiently.
- Train your support team or sourcing partner.
Also, don’t underestimate how much your listing setup affects this. Sellers who optimize their Amazon store often get more accurate reimbursements. Clean listings help Amazon’s system identify your products correctly.
This is also a great moment to review your Amazon FBA seller responsibilities. That includes staying on top of changes like this—and documenting every cost, return, and lost item.
Why It Pays to Prepare Now
Amazon traffic per seller has jumped by 31% since 2021. But seller count is dropping. That means more sales for those who stay—but also more scrutiny. Amazon is tightening operations. If you’re sloppy with cost data, that will hurt.
And if you miss this change? The money left on the table could be huge.
Don’t Leave Money on the Table
You’re doing the work. You’re managing products, shipping inventory, and dealing with Amazon’s always-changing rules. The least you can do is make sure you’re getting paid when they mess up.
Cost-based reimbursement isn’t going away. But you can get ahead of it. Upload your costs. Use smart tools. Consider automation with Manage Amazon if you’re tired of chasing down every line item.
Because in 2025, staying profitable on Amazon means staying sharp—and refusing to let small errors become big losses.
