Overview

Amazon's FBA inventory reimbursement policy outlines how sellers are compensated when their inventory is lost or damaged while under Amazon's care. This policy covers items stored in Amazon fulfillment centers, in transit between facilities, or handled by Amazon-partnered carriers. For any FBA seller, understanding these reimbursement rules is essential to protecting your bottom line and ensuring you recover the value of mishandled inventory.

Key Points / What Sellers Need to Know

• Automatic reimbursements – Amazon proactively identifies many cases of lost or damaged inventory and issues reimbursements automatically, without requiring a seller-initiated claim.
• Manual claims available – When automatic reimbursement does not occur, sellers can file manual claims through Seller Central, but strict time windows apply.
• Reimbursement value is calculated by Amazon – Amazon determines the reimbursement amount based on comparable sales prices, not necessarily your purchase cost or listing price.
• Replacement or cash – Amazon may replace the lost or damaged item with an identical unit or provide a monetary reimbursement to the seller's account.
• Claim windows have tightened – Amazon has shortened the windows for filing manual reimbursement claims, making timely monitoring of inventory discrepancies more important than ever.
• Documentation may be required – For certain claims, Amazon may request proof of ownership, purchase invoices, or other supporting documentation.

How the Reimbursement Process Works

When inventory is lost or damaged at an Amazon fulfillment center or during transit between Amazon facilities, the system is designed to detect the discrepancy automatically. Amazon's internal reconciliation processes compare expected inventory levels against actual counts, and when a shortfall is confirmed, a reimbursement is generated. Sellers can monitor these reimbursements through the Reimbursements report in Seller Central under the Reports section. If a discrepancy is identified that Amazon has not automatically addressed, sellers can submit a manual claim through the Reimbursement tool, providing the relevant shipment IDs, ASIN details, and any supporting evidence.