If Amazon loses your $200 collectible, you might get back $50 (or even less) after March 2025.
I’m not exaggerating…
Their new reimbursement model pays manufacturing costs only. No shipping. No customs. No handling fees.
In fact, one seller calculated they’d lose up to 75% of compensation on lost inventory.
But there’s a way out…
You can submit your actual costs before Amazon calculates its own “Fair Price”. Most sellers don’t know this yet.
In this guide, I will tell you how the Amazon FBA reimbursement model works, both manual and automatic models.
Plus, you will learn how to effectively claim to get the most out of your lost or damaged items at the Amazon warehouse. Find more below.
Table of Contents
Key Take Away
In a hurry? Read this summary to quickly grasp the concept of Amazon FBA Reimbursement:
- March 2025 Change: Amazon reimburses based on manufacturing cost only (no shipping/customs), not retail value; submit your costs or Amazon estimates.
- Step-by-Step Guide for Amazon FBA Reimbursement: Check inventory issues; file manual claims in Seller Central for losses/damages; provide proofs like invoices.
- How to Calculate Your Reimbursement Pricing: Include the entire invoice cost, not just the manufacturing cost.
- Timeline for Amazon Reimbursement: Within 60 days; processing may take 5-15 business days.
If you’re new to selling, also read How to Make Money on Amazon Without Selling, which helps you understand alternate profit models alongside FBA.
What Is Amazon FBA Inventory Reimbursement?
Amazon FBA inventory reimbursements are financial compensations Amazon provides when inventory is lost, damaged, or mishandled within its fulfillment network.
Here’s what triggers these reimbursement payouts:
- Lost inventory that vanishes in Amazon’s warehouse
- If their team breaks the damaged goods, you get paid
- Fee screw-ups like overcharges, wrong calculations
- Return disasters, such as the items disappearing after the customer sends them back
But there is a catch…
Amazon’s March 2025 Changes Everything…
Under the 2025 update, reimbursements are now based on the manufacturing (sourcing) cost of your product instead of its retail or market value.
You can submit your verified cost data, or Amazon will apply its own internal estimate calculated from comparable products and wholesale data.
| Pro Tip: This reimbursement policy applies only to FBA sellers. For FBM sellers or dropshippers, they can file a SAFE-T claim under Amazon’s prepaid return label program if the loss or damage occurs after the item is received and sold to a customer. |
What are the Eligibility Criteria for FBA Inventory Reimbursement?
Before filing a claim, sellers must meet Amazon’s specific eligibility criteria for FBA reimbursements. The criteria are explained below:
- The product must be registered with Amazon FBA when the issue occurred.
- Your product must follow FBA product restrictions, box sizes, labeling, and packaging standards.
- Amazon verifies your shipping plan quantities and SKUs. If there’s any mismatch between what you declared and what was received, reimbursement may be denied.
- Only completed shipments are eligible. Canceled or deleted shipments are automatically excluded from review.
- Inventory that you requested to dispose of, or that Amazon disposed of for policy reasons, is not eligible for reimbursement.
- Amazon only takes responsibility for damage that occurs under its control. Customer-caused or manufacturing defects are not covered.
| Good to Check: If you want to learn more about the eligibility criteria in detail, Amazon’s restrictions, or FBA inventory requirements, read this detailed guide by Amazon. |
How Does Amazon’s FBA Reimbursement System Work?
Amazon’s FBA reimbursement process runs on two tracks:
- Automatic reimbursements
- Manual reimbursements
Here is the difference between the two types:
1. Amazon Automatic FBA Reimbursements
Amazon automatically detects and reimburses inventory discrepancies.
Automatic reimbursement policy rolled out in November 2024.
As per this policy, Amazon proactively reviews your inventory and pings you as soon as a product is damaged or lost.
| Pro tip: You have 60 days to verify the claim and submit the proofs, else Amazon will automatically reimburse the amount to your account as per the item’s manufacturing cost. |
Requirements to be Qualified for Automatic Reimbursements
Automatic reimbursements typically apply to:
- Lost or damaged inventory within fulfillment centers
- Customer returns have not been received back
- Warehouse mishandling or disposal errors
Where to Find Automatic Reimbursement Reports
You can find automatic reimbursement in Seller Central to review and verify these transactions.
For this: Go to you in Seller Central → Reports → Fulfillment → Reimbursements.
However, automation isn’t perfect. Certain discrepancies, such as missing customer returns or disposal errors, still require manual claims.
Read more: There is a difference between Seller Central and Vendor Central, as there are 2 models for sellers on Amazon. Click here to get a distinctive learning on both topics.
2. Amazon Manual FBA Reimbursements
If Amazon’s system doesn’t detect an issue automatically, you must file a manual reimbursement claim.
The process varies depending on where in the fulfillment chain the loss occurred:
| Claim Type | Description | When to File |
| Shipment to Amazon Claims | Units lost or damaged while being shipped to an Amazon fulfillment center | When the received quantity is less than the shipped quantity |
| Fulfillment Center Operations Claims | Items lost or damaged inside Amazon’s warehouse | When Amazon mishandles or misplaces inventory |
| Customer Return Claims | Items lost, damaged, or not returned after a customer refund or replacement | When Amazon refunds but doesn’t return the product |
| Removal Claims | Items lost or damaged during removal or disposal | When Amazon fails to return items requested for removal |
Remember that the Amazon reimbursement policy only applies to 3P sellers, not 1P sellers. You must have an FBA account to claim your returns.
How to Submit an Amazon Manual Reimbursement?
You can file a manual claim in Seller Central → Help → Get Support → Fulfillment by Amazon → Investigate Inventory.
| Important to Know for Manual Reimbursements: Always submit the verified records within 60 days through the Manage Your Sourcing Cost page to avoid cost cuttings from Amazon. |
How Amazon Verifies Manual Reimbursements?
| Pro answer: Amazon verifies manual reimbursement claims by cross-referencing the information and documentation you provide against its own internal reports and system records. |
Once a claim (automatic or manual) is triggered, Amazon verifies:
- The item was registered in FBA and eligible under the policy.
- The loss occurred under Amazon’s control.
- The value of the item, based on either your submitted data or Amazon’s estimate.
What if Amazon Finds a Lost Product…
If an item reimbursed is later found and returned to your inventory, Amazon reserves the right to reverse the reimbursement credit.
How to Determine How Much Amazon Owes You?
You can determine how much Amazon owes you by checking the price of the lost product and the date it was lost.
- For example, if an item is lost in a pre-order event, Amazon will reimburse you on the basis of the manufacturing cost.
- And if an item is lost after an order is made, Amazon will reimburse you on the basis of the sales price.
1. Pre-Order Events: Based on Manufacturing Cost
For items lost or damaged before the product is sold, such as inbound shipments, warehouse handling, or removal orders, Amazon reimburses you based on your manufacturing or sourcing cost.
This is part of the new reimbursement model effective March 31, 2025. Amazon defines:
“Manufacturing cost” is what you paid to source, produce, or purchase the item from a supplier, excluding shipping, customs, or labeling fees.
How to Provide Cost Data?
You have two options:
- Submit your own cost data in the Manage Your Sourcing Cost portal (supported by invoices or purchase records).
- Let Amazon estimate your cost using data from comparable listings, wholesale channels, and market averages.
What happens if you don’t submit data?
If you don’t provide cost information, Amazon’s internal estimate automatically applies. Amazon also asks for proof if your declared costs seem inaccurate or significantly higher than the average.
| Tip: Always maintain updated sourcing cost records for each ASIN. Providing verified cost data increases accuracy and prevents underpayment. |
2. Post-Order Events: Based on Customer Refund or Replacement Value
If an item is lost or damaged after a customer’s purchase, Amazon bases the reimbursement on what the buyer paid or the sales price. The amount is calculated as:
“Reimbursement amount = Customer refund or replacement value – applicable Amazon fees”
Confused on how to track what was sold and shipped by Amazon? Our guide “How to Find Items Sold & Shipped by Amazon 2025: A Complete Guide” explores in-depth Amazon delivery tracking.
Is There a Limit on Reimbursement Amount by Amazon?
No, there is no limit on reimbursement amount by Amazon. However, there is a catch…
Amazon won’t pay you if the amount exceeds $5,000 per product in the US, £2,000 in the UK, and €275 in parts of Europe for multi-channel fulfillment orders.
Now, that’s a real bummer…
For products that are costly, Amazon recommends that you get third-party insurance to protect against damage or losses.
Exactly!
More is coming from your pocket if you are selling high-value items on Amazon, including sourcing cost + insurance cost.
| Conditions When Amazon May Reduce the Reimbursement AmountAmazon may reduce the reimbursement amount if:The lost or damaged unit was unsellable or previously marked as defective.You provided incomplete or unverifiable cost documentation.Amazon determines that your declared cost is an outlier compared to similar products.If you disagree with the valuation, you can dispute it within 60 days. |
How Long Does Amazon Take to Reimburse You?
Amazon typically processes FBA reimbursements within 5 – 45 business days after approval.
Automatic reimbursements post faster in a few days. However, manual reimbursements take time and can take weeks. However, you will get a response in 2-3 days from the support for reimbursements.
Good to read: If you are starting on Amazon, finding your competitor seller is a must-have skill. Analyzing their store can help you get insights about pricing, presentation, and discounts.
Types of FBA Reimbursements
Amazon offers multiple types of reimbursements depending on where and how the issue occurs in the fulfillment process. Each type has its own claim method and filing deadline:
| Category | Example Issue | Automatic or Manual | Claim Deadline |
| Lost Inventory | Missing units during transfer between Amazon fulfillment centers | Automatic | 60 days |
| Damaged Inventory | Products damaged inside fulfillment centers due to handling errors | Automatic | 60 days |
| Inbound Shipment | The quantity received is less than what was shipped to Amazon | Manual | 15–75 days |
| Customer Return | Customer refund issued, but the item hasn’t been returned or is returned damaged | Automatic / Manual | 60–120 days |
| Removal Order | Items lost or damaged during removal or disposal | Manual | 60 days |
| Overcharged Fees | Incorrect FBA fees for size, weight, or storage | Manual | 90 days |
| Reversal Claims | Reimbursement is credited earlier, but reversed after the item is found | Manual | Case-by-case |
What Are the Top Third-Party Sites to Help You With Reimbursements?
The top third-party sites to help you with reimbursements are GETIDA, Seller Investigations, and AMZRefunds.
But even a more important question superseded the above query:
“Should you go with a third-party site in the first place, and why?”
A seller should go with a third-party for help on reimbursements if they have the following issues:
- Complex issues like customer returns, overcharged fees, or removal order errors require detailed data,
- High sales volume and they are unable to monitor every return or damaged product.
- No expertise and they think they might not be able to handle the matter like a pro
They have Seller Central experts to get you out of the under the weather and provide you with the fair value of your items.
| Helping tip: Avoid going to third-party sites if you have a few products to claim for reimbursements. This will save you some more precious bucks in the form of fees. |
Nevertheless, here is a detailed review of the 3 sites that can tackle your reimbursement issues:
- GETIDA
Best for: Sellers managing large catalogs or high shipment volumes who want hands-off automation with full transparency.
GETIDA (Get Intelligent Data Analytics) is one of the most popular and Amazon-approved reimbursement platforms in the Service Provider Network (SPN). It specializes in finding and recovering discrepancies that Amazon’s automation misses.
Pros:
- Certified by Amazon’s SPN program (safe to use).
- Provides detailed audit reports and case tracking.
- Handles all reimbursement categories (lost, damaged, overcharged fees, removals).
Cons:
- Charges 25% commission on recovered funds.
- May flag duplicate claims if you also file manually, so coordination is key.
Seller Investigators
Best for: Sellers who prefer manual precision and want to avoid account risk from over-automation.
Seller Investigators is another reimbursement and auditing firm that assists the automation process with human claim review. It’s known for thorough reporting and minimal false submissions, ideal for maintaining a clean claim record with Amazon.
Pros:
- Manual review ensures accuracy and compliance.
- Works directly with Seller Central case IDs for visibility.
- Lower rejection rates compared to fully automated tools.
Cons:
- Slightly slower processing (claims often filed within 5–7 days).
- Takes a 25% commission of recovered funds.
AMZRefunds
Best for: Small to medium sellers who want a low-maintenance tool to catch common fees and inbound errors.
AMZRefunds focuses on fee overcharges, storage errors, and inbound discrepancies. It’s fully automated and integrates directly with Seller Central, making it easy for smaller sellers to start without manual uploads.
Pros:
- Simple dashboard and fast setup.
- No monthly subscription, only charges when funds are recovered.
- Great for fee-focused audits (weight/dimension errors).
Cons:
- Limited coverage for customer return or removal-related claims.
- Less hands-on support than competitors.
If you still think this won’t affect you, this Reddit thread shows what many sellers are already facing:
A guide to Amazon FBA Reimbursements including the recent changes
byu/jordiobdotcom inAmazonTools
Is There Any Way to Avoid Reimbursement in the First Place?
Yes, you can avoid reimbursement issues if your sales are good and products are flowing well.
If an item sits in the Amazon warehouse for too long, the chances of its being lost increase due to staff negligence or product damage.
One way to increase sales is to enhance the visibility of your items. And there is no better way than getting PPC ads.
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- Windscreen Supply Co. skyrocketed its sales to 210% with ImpactWolves.
- HarveyFrances, a windshield brand, not only decreased its TACoS by 7%, but also increased its sales by 73%.
I can speak more, but we don’t have much time as our PPC expert, Abdullah on ImpactWolves, is offering a limited-time free Amazon PPC audit – an appealing offer which I don’t know how long will last.
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FAQs
What’s the max reimbursement cap per unit?
The maximum FBA reimbursement Amazon offers is $5,000 per unit. If your product value exceeds this, Amazon recommends using third-party insurance for additional coverage.
How long do I have to file a claim for reimbursement?
You must file your FBA reimbursement claim within 60 days of the loss or damage event. Claims submitted after that window are automatically denied.
How to dispute a denied claim?
Go to Seller Central → Help → Contact Us → Fulfillment by Amazon → Reimbursement Disputes. Submit proof of your product’s sourcing cost or shipment records to reopen the FBA claim.
How to read the Amazon reimbursement report?
In Seller Central → Reports → Fulfillment → Reimbursements, you can view all FBA reimbursement transactions, including amount, reason, and status. Use filters by date or claim type to track payments easily.
Conclusion
The 2025 reimbursement update marks a major shift in how Amazon compensates FBA inventory. With reimbursements now tied to manufacturing cost, accuracy and documentation are critical.
Stay protected by keeping cost records organized, submitting them early, and tracking every claim within the 60-day window. Use both automatic and manual audits to prevent losses, and consider third-party insurance for products exceeding Amazon’s $5,000 cap.
