Amazon reimbursement policy changes: What every seller needs to know in 2025

TL;DR

• From March 31, 2025, Amazon will reimburse lost/damaged FBA inventory based on manufacturing cost, not selling price, which could reduce payouts by up to 60% for high-margin products.

• Sellers can submit their own sourcing costs to avoid Amazon’s (possibly lower) estimates, making accurate cost records critical.

• Items lost or damaged after an order is placed will still be reimbursed at the sales price minus standard fees.
  Documentation requirements are stricter, with invoices or purchase receipts often needed to support claims.

• Claim-filing windows are shorter, 60 days for most FBA inventory issues, so faster monitoring is essential.

• Using automation tools like Refunzo can help track, audit, and file claims on time, ensuring maximum reimbursement under the new rules.

Selling on Amazon? Then you’ll want to hear this: the 2025 Amazon reimbursement policy changes are here, and they could seriously impact how much money you get back when your FBA inventory is lost or damaged.

Imagine losing valuable inventory and getting only a fraction of what you expected in return. That’s a reality many sellers could face if they’re not prepared.

But don’t worry! 

By understanding these updates early, you can protect your business and ensure you receive the fair compensation you deserve. Whether you’re selling high-margin or private-label products, learning about these new rules will help you avoid surprises and keep your profits safe.

This article will explain the key changes, how they affect your Amazon business, and what you can do to stay ahead. Keep reading to find out everything you need to know.

What’s new in Amazon FBA reimbursement policy?

As of March 31, 2025, Amazon will roll out changes to its FBA inventory reimbursement policy. Here’s a quick and easy overview of what’s changing and how it might affect you.

Amazon FBA reimbursement policy changes 2025

#1 Lower the reimbursement rates 

Amazon is making a major change to how FBA inventory reimbursements are calculated, and every seller should pay close attention.

Previously, when Amazon FBA lost or damaged inventory, reimbursements were calculated using the item’s average selling price. That often gave sellers a fair return, especially for high-margin products. But from March 2025, Amazon will switch to reimbursing based on the product's manufacturing cost instead.

So what does that mean exactly?

Your Amazon seller reimbursement will now be calculated using only what you paid to source or manufacture the product. This includes what you paid to a supplier, wholesaler, or your own production cost if you're the manufacturer. However, it will no longer cover shipping, customs duties, packaging, or any other added expenses.

This change could result in significantly lower reimbursement amounts, especially for products with high selling prices and additional overhead costs.

If you're an FBA seller, this is the time to review your sourcing costs and update your records. Keeping accurate records of your product costs will be essential for making successful claims under the new policy.

#2 Amazon calculates reimbursements using your product cost

With the 2025 update to Amazon’s FBA reimbursement policy, your sourcing cost will now play a key role in how reimbursement amounts are calculated.

Here’s what that means for you as a seller:

Amazon will estimate your product's manufacturing cost using data from similar products sold on Amazon, by other sellers, and through wholesale sources. This estimate will be used to calculate your Amazon seller reimbursement if your FBA inventory is lost or damaged.

No worries, you don’t have to accept Amazon’s estimate as final.

You can submit your own sourcing or manufacturing costs for each product. If you don’t, Amazon will go ahead with their estimate, but you’ll still have the option to update it later. It gives you more control and helps ensure you're not underpaid in case of a reimbursement.

For example, if Amazon estimates your product cost at $4, but you actually pay $7 to source it, providing your real cost means you’ll be eligible for a higher reimbursement amount. So, make sure to keep accurate records of your product costs. 

Taking a few minutes to submit the right numbers can make a big difference to your bottom line.

#3 Reimbursement for items lost or damaged after a customer’s order

While Amazon is changing how it handles reimbursements for lost or damaged inventory in general, there’s one important exception you should know about. If an item gets lost or damaged after a customer places an order, Amazon will still reimburse you based on the original sales price, not the manufacturing cost. 

That means you’ll receive the same amount you sold the item for, minus any standard Amazon fees that would have applied anyway. This part of the Amazon FBA reimbursement process remains unchanged, which is good news for sellers. 

It helps protect your revenue when a sale has already been made, but the item doesn’t reach the customer due to an issue on Amazon’s side.

Here’s a breakdown of this concept with an example:

Let’s say you sold a product for $25, and after the order was placed, it was lost during shipping. Amazon will reimburse you the $25 minus the regular FBA fees, not just what you paid to source the product.

So while FBA inventory reimbursement rules are becoming stricter in other areas for 2025, you can still count on getting close to the full value for post-order losses.

#4 Increase documentation requirements

Amazon is tightening the rules around what documentation you need to submit when filing FBA reimbursement claims. It means you’ll likely have to provide more detailed proof to back up your claims.

Amazon may now require invoices or purchase receipts that clearly show your actual manufacturing or sourcing costs. These documents help dispute Amazon’s estimated costs if you believe they’ve undervalued your reimbursement.

Why does this matter?

Well, without proper paperwork, your claim could be delayed or even rejected. Having clear, accurate documents ready can speed up the process and improve your chances of getting the full reimbursement you deserve.

Amazon reimbursement claim documents for 2025

If you haven’t been keeping organized records, now is the perfect time to start. Keep all your invoices, bills of materials, or supplier quotes handy and make sure they match the products you sell. 

This change is all about making reimbursements fairer, but it also means you must be more diligent. Accurate documentation ensures you’re paid based on your actual costs, not just Amazon’s estimates.

#5 Short claim filing window

One of the key changes in Amazon’s FBA reimbursement policy is the reduction in claim-filing windows, and that means sellers need to act faster than before. This is implemented in November 2024. 

If your inventory is lost or damaged in Amazon’s fulfillment centers, you now have just 60 days from the date the issue is reported to file a reimbursement claim. That’s a shorter window than before, so keeping a close eye on your reports is more important than ever.

For FBA customer return issues, the claim window falls between 60 and 120 days, depending on the situation. Missing these deadlines could mean losing out on reimbursements you’re rightfully owed.

This update puts more pressure on sellers to be proactive. If you're used to reviewing your reports every few weeks or once a month, it may be time to tighten that schedule. Checking your FBA inventory reports weekly or even using tools that alert you to problems can help you stay on top of things.

Amazon won’t send reminders, so the responsibility is on you to catch errors and file claims in time. Because the faster you identify an issue, the better your chances of getting your Amazon seller reimbursement approved. 

How does it financially impact the seller? 

Amazon’s 2025 reimbursement policy changes bring a big shift that every FBA seller needs to understand because it could seriously affect your earnings.

Previously, if Amazon lost your inventory, they would usually reimburse you based on the item’s selling price minus fees. So, if you sold something for $30, you might have gotten close to that amount back if the product went missing or got damaged.

Now, things have changed. Reimbursements are calculated based only on the manufacturing or sourcing cost. The amount you actually paid to get the product, not what you sold it for. This means costs like shipping, handling, and customs fees are left out.

Let's break it down with an example: 

If your product sells for $30 but only costs you $5 to make or buy, under the new rules, your reimbursement for a lost or damaged item drops from nearly $30 to just $5.

For sellers with high-margin items, this can add up fast, leading to significant losses over time. Experts estimate that these changes could reduce reimbursements by as much as 60% on average, which is a huge hit for sellers relying on FBA for their business.

In short, understanding this financial impact will help you plan better, adjust pricing or sourcing strategies, and avoid surprises in your profits.

Staying informed and prepared is the best way to protect your business from these changes. Now, it’s not just about boosting your sales; it’s also about safeguarding your investment and making sure you get fair payback when inventory goes missing or gets damaged. 

Managing your Amazon reimbursement claims is now more challenging with tighter deadlines and stricter rules. Missing a claim or filing late means losing money. 

That’s why using smart tools like Refunzo is a smart move; it helps you track, audit, and file claims quickly and accurately to get every dollar you deserve.

How can Refunzo help?

With Amazon’s new FBA reimbursement policies bringing more complex rules and tighter deadlines, staying on top of your claims can feel challenging. That’s where Refunzo steps in to make your life easier and your business more profitable.

Steps to claim your Amazon reimbursement with Refunzo 

Refunzo offers “full claim automation,” meaning it automatically scans your FBA account for lost, damaged, or misplaced inventory eligible for reimbursement. This saves you countless hours of manual checking and ensures that no claim slips through the cracks, which is especially important now that claim windows have shortened to 60 days for many issues.

What sets Refunzo apart is its “thorough auditing process.” It carefully reviews every discrepancy, compares it with Amazon’s reimbursements, and identifies any missed opportunities to recover money. It means you get a detailed check on how much Amazon owes you, without the hassle of digging through complex reports yourself.

Time is valuable, and Refunzo’s automation helps you save both time and money. Instead of spending hours tracking claims, you can focus on growing your business while Refunzo handles the tedious work. With a proven 96.4% success rate, you can trust that your reimbursements are maximized and accurate.

In a landscape where reimbursements are now based on manufacturing costs and documentation requirements are stricter, having a reliable and the best Amazon reimbursement service ensures you get the fair compensation you deserve, quickly and effortlessly.

Stay ahead of the changes, protect your profits, and simplify your FBA reimbursement process with Refunzo.

Closing thoughts

Major changes are coming in 2025 for Amazon FBA sellers, and if you’re not ready, you could lose out on a lot of money. Amazon is lowering reimbursement rates, asking for more documentation, and giving sellers less time to file claims.

Sounds stressful, right?

But don’t worry, this is where having an Amazon expert on your side makes all the difference. Refunzo automatically tracks your lost or damaged inventory, audits your account, and files claims fast, so you don’t have to.

With these new rules, every dollar counts. Stay stress-free, protect your profits, and let Refunzo handle the tough part for you.