Navigating Amazon’s 2025 Reimbursement Policy Changes: A Seller’s Guide
Introduction
In early 2025, Amazon revised its reimbursement policy for inventory lost or damaged in its fulfillment centers. For sellers, this update means lower payouts, tighter documentation requirements, and potential strain on margins. Understanding the changes to the Amazon reimbursement policy 2025 is essential to protecting your revenue and keeping operations running smoothly.
This guide breaks down what changed, what it means for your business, and how to respond effectively.
What Changed in Amazon’s Reimbursement Policy
Amazon previously reimbursed sellers based on the estimated retail value of the item. However, the 2025 policy now focuses on the documented manufacturing cost of the product. Here are the major changes:
No More Retail-Based Reimbursements: Amazon now calculates reimbursements using cost-of-goods-sold (COGS), not the price on your listing.
Documentation Required: Sellers must submit invoices and manufacturing cost breakdowns when filing reimbursement claims.
Shorter Appeal Windows: In many cases, sellers have 30 days or less to respond or appeal denied reimbursements.
How These Changes Impact Amazon Sellers
These changes present several operational and financial risks for FBA sellers:
Lower Reimbursement Payouts: If you price your products at a premium, expect to recover far less than before.
Higher Burden of Proof: Amazon now requires precise, consistent documentation — missing or mismatched records may result in denied claims.
Cash Flow Pressure: Delayed or reduced reimbursements can interfere with your ability to restock, especially during peak seasons.
Common Scenarios Where This Policy Affects Sellers
Here are real-world examples where sellers are feeling the impact:
Lost During Inbound Shipment: Amazon misplaces inbound inventory but pays only a fraction of the retail value based on submitted COGS.
Damaged During Fulfillment: If a customer receives a broken item, Amazon refunds the buyer in full, but reimburses the seller far less unless strong documentation is provided.
Inventory Adjustments with No Explanation: Amazon quietly removes units and marks them as “unsellable” or “disappeared,” triggering a low-cost reimbursement.
How to Protect Your Business Under the New Rules
1. Keep All Manufacturing and Sourcing Documents
Maintain digital copies of:
Supplier invoices
Bills of lading
Production cost breakdowns
Import/export records
Make sure these documents clearly show SKU, unit cost, date, and source.
2. Submit Reimbursement Claims Promptly
Act fast — Amazon deadlines for reimbursement or appeals can be short.
File claims within 30 days when items are lost or damaged.
Double-check that all supporting documents are uploaded.
3. Audit Your Inventory Weekly
Use Amazon’s inventory adjustment reports to track removals or shrinkage.
Cross-check against your internal stock logs.
Challenge any unexplained removals or damage entries immediately.
4. Consider Third-Party Reimbursement Tools
There are automated tools available that flag missing inventory, reconcile FBA shipments, and submit claims. While not perfect, they help ensure nothing slips through the cracks.
Preparing for Q4 and High-Volume Seasons
With higher sales volumes come higher risk of lost or damaged inventory. Now is the time to:
Strengthen your documentation process
Set up automated reporting for FBA reconciliation
Plan for lower-than-expected reimbursements in your cash flow forecasts
If you need help disputing a denied claim or suspect Amazon has shorted your reimbursements, AmazonSellersLawyer.com can help review the case and guide you through next steps.
Final Thoughts
The Amazon reimbursement policy 2025 change has reshaped how sellers recover losses from FBA errors. It places the burden on sellers to prove what their inventory is worth — and to do it quickly.
Staying organized, keeping documentation ready, and reviewing your account regularly will help ensure you recover what’s owed to you. Don’t let preventable policy changes chip away at your profit margins.
For sellers facing reimbursement denials, account warnings, or unfair removals, AmazonSellersLawyer.com offers the legal insights and support needed to protect your Amazon business.