Amazon Updates FBA Inventory Reimbursement Policy: Manufacturing Cost Takes Center Stage

2024-12-19

Amazon announced an update to its Fulfillment by Amazon (FBA) inventory reimbursement policy, effective March 10, 2025. The new policy will reimburse sellers based on the manufacturing cost of lost or damaged inventory, with sellers able to provide their own cost or use Amazon's estimate. While aiming for greater transparency and predictability, the change has sparked seller concerns about potentially lower reimbursements, especially for handmade sellers. Amazon also introduced automatic reimbursements for items lost in their fulfillment centers.