Overview

Amazon will replace its long‑standing “sale‑proceeds” method for FBA reimbursement with a model that uses the product’s manufacturing or sourcing cost. The shift takes effect on March 31 2025, and it means that many sellers can expect reimbursement amounts to drop dramatically, in some cases by half or more. Sellers who rely on Amazon’s reimbursement program need to understand the new calculations, the tighter claim windows, and the documentation requirements to avoid unexpected revenue loss.

Key Points

• Cost‑Based Reimbursement — Amazon will base every lost‑or‑damaged inventory claim on the amount the seller actually paid for the item, not on the price the item would have sold for on the marketplace.
• Supply & Cost Portal — Sellers can upload their own cost figures through the newly created Supply and Cost portal; Amazon will use these numbers if they are lower than its default estimates.
• Amazon’s Default Estimates — When sellers do not provide data, Amazon generates a sourcing‑cost estimate from comparable SKUs, and many sellers have reported that these estimates run 40 % or more below their true costs.
• Proof of Cost Required — Amazon may ask for manufacturer invoices, wholesale invoices, or commercial invoices that list SKU, quantity, unit price, currency, and buyer/issuer details before approving a claim.
• Compressed Claim Windows — In the United States, fulfillment‑center loss claims must be filed within 60 days (down from 18 months), customer‑return claims within 60‑120 days, and removal‑order claims within 15‑75 days.
• Potential Unclaimed Value — Industry analysts estimate that 40 %–60 % of reimbursements that would have been paid under the old model could go unclaimed because of the lower payout values and the shortened filing periods.

How the New Cost‑Based Reimbursement Works

1. Default Cost Calculation — Amazon automatically assigns a sourcing‑cost estimate to each SKU based on market‑wide data. Example: A seller of a $30 kitchen gadget receives an Amazon‑generated cost estimate of $12, even though the seller’s actual purchase price is $18.