Overview

Amazon has rolled out per‑unit reimbursement limits for its Multi‑Channel Fulfilment (MCF) service, capping the amount sellers can recover when inventory is lost or damaged inside Amazon’s MCF network. The caps, which differ by marketplace, became effective on August 23 2024. Sellers who depend on MCF to ship orders from external sales channels need to understand the new ceilings and consider additional protection for high‑value items.

Key Points

• Per‑unit caps introduced — Amazon now sets a maximum payout for each unit lost or damaged in MCF, with the ceiling varying by country.
• U.S. limit of $450 — American sellers can receive up to $450 for any single eligible unit.
• Canada ceiling of $400 CAD — Canadian marketplace participants are capped at $400 CAD per unit.
• European threshold of €275 — Germany, France, Italy and Spain share a €275 per‑unit maximum.
• U.K. cap of £250 — Sellers on Amazon.co.uk are limited to £250 for each affected unit.
• Australia outlier at $5,000 AUD — Australian sellers enjoy a substantially higher ceiling of $5,000 AUD per unit.

How MCF Reimbursements Now Work

1. Cap application — When Amazon confirms that a unit was lost or damaged inside the MCF workflow, the reimbursement amount is limited to the marketplace‑specific ceiling.
   • Example: A U.S. seller whose $800 smartwatch is declared lost will receive $450, not the full $800.
2. Value excess absorption — If the product’s actual market value exceeds the cap, the seller must absorb the difference.
   • Example: An Australian vendor shipping a $7,200 camera that is damaged will be reimbursed $5,000 AUD, leaving a $2,200 shortfall.
3. Eligibility criteria — Only units that meet Amazon’s standard MCF loss‑or‑damage criteria qualify for the capped reimbursement; the caps do not apply to regular FBA orders fulfilled directly on Amazon’s marketplace.