Overview

Starting March 31 2025, Amazon will base reimbursements for lost or damaged pre‑order inventory on the item’s manufacturing cost rather than its selling price. The shift primarily affects sellers of high‑margin goods, where payouts can shrink by up to 75 %. Prompt cost‑data submission is essential to avoid default estimates that could further reduce compensation.

Key Points

• Reimbursement basis changes — Pre‑order losses will be compensated using the product’s acquisition cost instead of the list price.
• Post‑order claims stay unchanged — If an item disappears after a customer order is placed, Amazon will continue to reimburse based on the sale price minus applicable fees.
• Cost entry portal active — Sellers can log their own cost figures on the reimbursement policy page in Seller Central beginning February 28 2025.
• Automatic estimates applied after deadline — Sellers who fail to provide cost data by March 31 2025 will have Amazon’s algorithm‑generated cost applied to any future claim.
• Narrow cost definition — Only the direct purchase or production expense qualifies; freight, customs, marketing, and warehousing are excluded from the calculation.

How the New Reimbursement Method Works

1. Identify the loss type — Determine whether the missing inventory was part of a pre‑order batch (no customer order placed) or a post‑order shipment. Example: 200 units of a new gadget awaiting launch are lost in the fulfillment center; this triggers the new cost‑based rule.
2. Apply the appropriate cost basis —
   • Pre‑order: Amazon uses the manufacturing cost you supplied (or its estimate) as the reimbursement amount per unit.
   • Post‑order: Amazon calculates reimbursement as the selling price less Amazon fees, just as under the previous policy.
     Example: The gadget’s manufacturing cost is $12; Amazon will reimburse $12 per unit for the 200 lost items, rather than the $48 retail price.