Overview

Amazon will switch its FBA reimbursement method on March 10 2025, moving from a sales‑price‑based calculation to one that uses the product’s manufacturing cost. Sellers must now upload cost data for each SKU through a new portal, or else Amazon will apply its own algorithmic estimates, which are typically lower than the previous payouts. The change affects only inventory lost or damaged before a buyer’s order, making it critical for sellers to adjust their cost‑tracking processes.

Key Points

• Manufacturing‑cost basis — Reimbursements will reflect the amount sellers paid to produce or source a unit, not the listed price minus Amazon fees.
• Narrow cost definition — Amazon counts only the raw purchase price; shipping, handling, customs duties and other ancillary expenses are excluded.
• Algorithmic fallback — Sellers who do not submit cost data receive estimates generated from Amazon’s proprietary pricing algorithms, often based on comparable marketplace listings.
• Automatic claim handling — Lost‑inventory claims are processed automatically; manual filing is no longer required under the new framework.
• SKU‑level cost portal — A dedicated Seller Central interface lets sellers enter manufacturing costs per SKU, with bulk‑upload capability for large catalogs.
• Limited scope — The policy applies solely to pre‑purchase losses; items damaged after a customer order remain reimbursed using the old sales‑price‑minus‑fees model.

How the New Reimbursement Model Works

1. Cost submission — Sellers upload the per‑unit manufacturing cost for each SKU via the new portal.

   • Example: A seller of silicone kitchen mats enters $4.20 as the cost for SKU #MK‑001, reflecting the price paid to the overseas factory.

2. Amazon’s estimate generation — If a SKU lacks seller‑provided data, Amazon runs an internal algorithm that pulls comparable wholesale prices and marketplace listings.