Overview

Amazon has moved the launch of its revised FBA lost‑and‑damaged inventory reimbursement policy from March 10, 2025 to March 31, 2025. The three‑week extension gives sellers extra time to enter accurate landed‑cost data through the new Cost Management page in Seller Central. Because the new formula bases reimbursements on the seller’s actual product cost rather than the selling price minus fees, precise cost reporting will directly affect the amount sellers receive when inventory is lost, damaged, or destroyed.

Key Points

• Effective Date Shift — The updated reimbursement rules will now apply on March 31, 2025, instead of the originally announced March 10 deadline.
• Extra Preparation Time — Sellers receive roughly 21 additional days to collect cost information and upload it before the new calculations take effect.
• Cost Management Page Launch — A dedicated page in Seller Central lets sellers record landed costs, including purchase price, inbound shipping, customs duties, and any other direct expenses.
• Full Access by Late February — All seller accounts will be able to view and edit the Cost Management page by February 28, 2025, providing a one‑month window to populate data.
• Reimbursement Formula Change — Amazon will reimburse based on the landed cost you submit; accounts without cost data will fall back to Amazon’s default assumptions, which often result in lower payouts.
• Scope of Covered Events — The policy covers inventory lost in inbound transit, damaged inside fulfillment centers, lost during the returns process, or destroyed without seller consent.

How the New Reimbursement Model Works

1. Cost Data Entry — Sellers log into Seller Central, navigate to the Cost Management page, and input the landed cost for each SKU. For example, a seller of a $30 Bluetooth speaker would record the purchase price ($18), inbound freight ($2), customs duty ($1), and any handling fees ($0.50), resulting in a total landed cost of $21.50 per unit.
2. Amazon’s Default Assumption — If a seller does not provide landed‑cost data, Amazon applies a generic cost estimate (often a percentage of the selling price). In the same speaker example, Amazon might assume a cost of 40 % of the $30 price, or $12, which would lower the reimbursement amount.