Understanding the Amazon FBA reimbursement policy is critical. In late 2024 and early 2025, Amazon updated key mechanisms with respect to Amazon FBA reimbursement policy —shifting to manufacturing-cost-based reimbursements of products and tightening claim windows. These changes risk squeezing seller margins. That’s where Max 3PL comes in, offering expert support to track, file, and recover rightful reimbursements efficiently.
-
Policy Evolution: 2024 Developments
Automated Reimbursements Start – November 1, 2024
Amazon began issuing automatic reimbursements for lost or damaged inventory in fulfillment centers—streamlining the process and reducing the need for manual claims. (Amazon Seller Central)
New Claim Windows Implemented – October 23, 2024
Amazon introduced strict deadlines for manual claims:
- FC-lost/damaged: within 60 days
- Customer return discrepancies: 60–120 days
- Removal transit: 15–75 days
- Other removal claims: within 60 days (Amazon Seller Central)
- 2025 Reimbursement Overhaul
Manufacturing-Cost-Based Reimbursements Begin – March 31, 2025
Originally scheduled for March 10, Amazon delayed implementation to March 31, granting sellers time to prepare via the “Manage Your Manufacturing Cost” portal. (Amazon Seller Central, eComEngine, Ridgeline Insights)
Key points:
- Reimbursements for pre-order inventory losses now reflect manufacturing cost only, excluding shipping, handling, duties, and other operational costs. (Amazon Seller Central, Modern Retail, Seller Labs, Cabilly & Co, Carbon6)
- Amazon will provide cost estimates, but sellers can upload their own to ensure accuracy. (Amazon Seller Central, Ridgeline Insights)
-
Policy Timeline Summary
Date | Policy Update |
Oct 23, 2024 | New claim submission deadlines established |
Nov 1, 2024 | Automated reimbursements for FC losses begin |
Dec 10, 2024 | Manufacturing-cost model announced |
Jan–Feb 2025 | Seller portal rollout for uploading costs |
Mar 31, 2025 | New reimbursement policy takes effect |
-
Impact on Sellers
- Sharper Margin Compression: Reimbursements drop dramatically if not aligned with manufacturing costs.
- Administrative Burden: Uploading accurate costs and meeting new deadlines adds operational strain.
- Risk of Undercompensation: Sellers may receive less than half the prior retail-based amount. (Modern Retail, Seller Labs, Cabilly & Co)
- Community Frustration: Many sellers argue the new model fails to fully cover their real losses. (Reddit, Carbon6, Modern Retail)
-
How Max 3PL Supports Reimbursement Management
Max 3PL effectively addresses these challenges through:
6.1 Pre-Upload Support
- Populates manufacturing cost data into the Amazon portal before the March deadline.
- Verifies accuracy and documentation completeness.
6.2 Proactive Alerts for Claims
- Monitors reimbursements.
- Sends early notifications for files due or auto-reimbursements pending.
6.3 Documentation & Dispute Support
- Maintains invoices, shipping, and cost records.
- Files or disputes claims based on discrepancies.
6.4 Audit & Recovery Oversight
- Reviews Amazon payouts versus expected reimbursement.
- Identifies gaps or missed claims.
6.5 Hybrid Fulfillment to Minimize Exposure
- Offers warehousing and preparation outside Amazon to reduce inventory at risk of unfair reimbursements.
-
Best Practices for Sellers (with Max 3PL)
- Upload accurate manufacturing costs early.
- Monitor reimbursement reports daily.
- Maintain detailed documentation.
- React quickly to claim notifications.
- Use third-party fulfillment strategically to control exposure.
Leave a Reply