Amazon's New FBA Reimbursement Policy Shifts to Manufacturing Cost — What Sellers Need to Know
Effective March 31 2025 Amazon will replace the sale‑proceeds reimbursement model with a cost‑based one, using the seller's manufacturing cost and a 0.5% rate. Claim windows shrink to 60 days for loss claims and 15‑75 days for removals, and sellers must upload costs via the new Supply and Cost portal.
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
- 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.
Analysis & Recommendations
Why This Matters
The new model can cut reimbursements by up to 67%, as illustrated by a $45 beauty serum dropping from $0.225 to $0.075 per unit. Shorter filing windows mean many claims could be forfeited unless sellers act quickly. Accurate cost data entered in the Supply and Cost portal is essential to avoid default estimates that are 40% lower than true costs.
Key Takeaways
- Reimbursements are now calculated on the seller's actual cost, not the sale price, using a 0.5% rate (e.g., $18 cost yields $0.09 per unit).
- Default cost estimates generated by Amazon can be 40%+ below true costs if sellers don’t upload their own data.
- Claim windows are compressed: loss claims must be filed within 60 days, customer‑return claims within 60‑120 days, and removal claims within 15‑75 ...
- The Supply and Cost portal is the required place to submit verified cost invoices; Amazon will use these numbers if they are lower than its estimates.
Recommended Actions
- →Log into Seller Central > Supply and Cost portal and upload manufacturer/wholesale invoices for each SKU to override Amazon’s default estimates.
- →Set up a weekly inventory reconciliation report and file loss or removal claims in Seller Central > Manage Returns within the new 60‑day window.
- →Create a cloud folder organized by SKU (e.g., "Cost Docs – SKU12345") and store all cost invoices for quick response to Amazon’s proof‑of‑cost requ...
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