Amazon's 2026 Policy Overhaul: Shorter Reimbursement Windows, End of FBA Prep, and What Sellers Must Do Now
Amazon will shrink the reimbursement claim window to 60 days (down from 18 months) effective 2026, end labeling, poly‑bagging and bundling services on 1 Jan 2026, and require a unique FNSKU for every unit by 31 Mar 2026. Reimbursements will be based on manufacturing cost and FBM sellers have only four calendar days to process returns.
Overview
Amazon rolled out a set of policy revisions slated for 2026 that reshape core fulfillment and reimbursement rules. The changes tighten the window for filing inventory loss claims, eliminate Amazon‑run preparation services, and end the practice of inventory commingling. Sellers who rely on Amazon’s logistics must adapt quickly to safeguard profit margins and avoid operational hiccups.
Key Points
- 60‑Day Claim Limit — Reimbursement requests for lost or damaged FBA units must now be submitted within 60 days of the incident, down from the previous 18‑month allowance.
- Manufacturing‑Cost Basis — Amazon will base compensation on the unit’s production cost rather than its retail price, often cutting reimbursement amounts by more than half.
- Prep Services Discontinued — Effective 1 January 2026, Amazon no longer offers labeling, poly‑bagging, or bundling for inbound shipments to U.S. fulfillment centers.
- No More Commingling — As of 31 March 2026, every product must carry a unique FNSKU; shared inventory pools are no longer permitted.
- Four‑Day FBM Return Rule — Merchant‑fulfilled sellers have a maximum of four calendar days to process a return before Amazon issues an automatic refund to the buyer.
What's Changing
- Reimbursement Window Shrinks — Sellers must monitor inventory daily and file a claim within 60 days of a loss. For example, if a pallet of 200 units goes missing on 5 May, the claim must be entered by 4 July, not the previous 5 November deadline.
- Cost Calculation Switches — Amazon now uses the manufacturing cost entered in Seller Central to determine payout. A toy sold for $30 but costing $7 to produce will only yield a $7 reimbursement if the unit is lost, compared with the earlier $30‑minus‑fees figure.
- Prep Services Removal — All inbound shipments must arrive fully prepared. A seller who previously sent unlabeled boxes for Amazon to label now needs to affix FNSKU stickers, place items in poly‑bags, and bundle sets before the carrier picks up the pallet. Failure to meet these standards results in shipment rejection and additional freight charges.
Analysis & Recommendations
Why This Matters
Sellers must overhaul daily inventory checks to meet the 60‑day claim deadline, enter accurate manufacturing costs to avoid half‑price reimbursements, and handle all labeling and bagging in‑house or via a prep partner to prevent shipment rejections. FBM merchants also risk automatic refunds if returns aren't processed within four days, impacting cash flow.
Key Takeaways
- Claim window reduced to 60 days; a loss on 5 May must be filed by 4 July 2026.
- Reimbursements now use manufacturing cost; a $30 toy would be reimbursed only $7.
- Prep services (labeling, poly‑bagging, bundling) end on 1 Jan 2026; sellers must prep inbound shipments themselves.
- Commingling ends 31 Mar 2026; every unit must carry a unique FNSKU label.
Recommended Actions
- →In Seller Central, go to Inventory > Manage Inventory > Daily Reconciliation and set alerts for discrepancies of 5+ units.
- →Update the Cost of Goods Sold for each SKU under Settings > Fulfillment > Product Cost and upload supplier invoices.
- →Generate FNSKU labels via Inventory > Print Labels, apply them before shipping, and set up an in‑house or third‑party prep station for labeling, ba...
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