Overview

Amazon will start enforcing new reimbursement limits for its Multi‑Channel Fulfilment (MCF) service on 23 August 2024. The caps set a maximum amount that Amazon will repay per unit when inventory is lost or damaged while being shipped through MCF. Sellers who rely on MCF to fulfil orders from their own websites, Shopify stores, or other marketplaces must understand the limits and adjust their risk‑management plans, especially for high‑value SKUs.

Key Points

• Per‑unit caps introduced — Amazon now caps reimbursements for each lost or damaged MCF unit, regardless of the item’s actual retail price.
• Geography‑specific limits — Caps differ by marketplace: US $450, Canada $400, EU €275 (Germany, France, Italy, Spain), UK £250, Japan $5,000.
• Effective from 23 Aug 2024 — All MCF orders processed on or after this date are subject to the new ceilings.
• Industry alignment — Amazon says the change brings its MCF policy in line with common practices across the broader fulfilment sector.
• Higher‑value items at risk — Sellers whose products regularly exceed the caps may face unrecovered losses unless they add extra protection.

What's Changing

1. Maximum reimbursement set per unit — If a US‑based seller ships a $620 smartwatch through MCF and the unit is lost, Amazon will only pay $450, not the full $620.
2. Caps vary by marketplace and currency — A Canadian seller with a $450 kitchen appliance will receive a maximum of $400, while a UK seller with a £300 designer bag will be limited to £250.
3. Policy applies to all MCF orders after the start date — An Australian seller who began using MCF on 1 September 2024 will automatically fall under the new limits; any orders processed before 23 August 2024 remain under the previous terms.

Context (Before vs. After)

• Before: Reimbursement amounts were calculated based on Amazon’s internal cost‑to‑replace model, which often resulted in payouts that matched or exceeded the product’s wholesale value.