# Update to the FBA inventory reimbursement policy **URL:** \ **Category:** Amazon Announcements\ **Tags:** lost-inventory, reimbursement, fba\ **Created:** [December 18, 2024, 9:27pm UTC](https://sellersasksellers.com/t/update-to-the-fba-inventory-reimbursement-policy/5252 "2024-12-18T21:27:00Z")\ **Posts on this page:** 20\ **Page:** 1
**Author:** ![VTR](https://sellersasksellers.com/user_avatar/sellersasksellers.com/vtr/32/14279_2.png) [@VTR](https://sellersasksellers.com/u/VTR)\ **Post date:** [December 18, 2024, 9:27pm UTC](https://sellersasksellers.com/t/update-to-the-fba-inventory-reimbursement-policy/5252/1 "2024-12-18T21:27:01Z")
Amazon is screwing you some more with FBA this January. This is a blatant push to support their vendor program or to get critical supply chain or COGS information from you. Plan your exit strategy if your margins on Amazon do not outweigh your privacy concerns for your COGS or supply chain. " Hello, We’re updating our Fulfillment by Amazon (FBA) inventory reimbursement policy to help provide you greater transparency and more predictability in how reimbursements are calculated for items that are lost or damaged before a customer order. This will help drive a more consistent approach that works as we support sellers with supply chain services across their sales channels. Effective March 10, 2025, we’ll reimburse you based on the product manufacturing cost of the affected inventory. To help provide you greater control and accuracy, you can choose how we determine the manufacturing cost for your products: • We’ll provide a manufacturing cost estimate for you. This estimate is based on a comprehensive evaluation of comparable products sold by Amazon, by other sellers, and through wholesale channels. • You can provide your manufacturing costs directly. If you don’t provide your own costs, we’ll automatically apply our estimate which you can change when you’re ready. …" We will be using a sister company or DBA to invoice ourselves to protect our supply chain information. ![image](https://sellersasksellers.com/uploads/default/original/2X/f/f75f8e58f388bbecf6c0be79c5e0277bfb46a5d9.png) You can read the details logged in [HERE](https://sellercentral.amazon.com/help/hub/reference/GQHQGBTD7XB7EECN?ref=sp_email). ---
**Author:** ![Dogtamer](https://sellersasksellers.com/user_avatar/sellersasksellers.com/dogtamer/32/4766_2.png) [@Dogtamer](https://sellersasksellers.com/u/Dogtamer)\ **Post date:** [December 18, 2024, 9:33pm UTC](https://sellersasksellers.com/t/update-to-the-fba-inventory-reimbursement-policy/5252/2 "2024-12-18T21:33:48Z")
> [@VTR](#): > > Amazon is screwing you some more with FBA this January. This is a blatant push to support their vendor program or to get critical supply chain or COGS information from you. > > Plan your exit strategy if your margins on Amazon do not outweigh your privacy concerns for your COGS or supply chain. > … Agreed. This unwelcome change has also been posted as a News Headline today, which I linked earlier in this SAS Post: [https://test.sellersasksellers.com/t/a-new-automated-reimbursement-for-fba-is-coming/4428/15](https://test.sellersasksellers.com/t/a-new-automated-reimbursement-for-fba-is-coming/4428/15) ---
**Author:** ![Lost\_My\_Marbles](https://sellersasksellers.com/user_avatar/sellersasksellers.com/lost_my_marbles/32/2919_2.png) [@Lost\_My\_Marbles](https://sellersasksellers.com/u/Lost_My_Marbles)\ **Post date:** [December 18, 2024, 9:49pm UTC](https://sellersasksellers.com/t/update-to-the-fba-inventory-reimbursement-policy/5252/3 "2024-12-18T21:49:00Z")
We got the notice via email … never done FBA … but we got the notice anyhow. 🥱 ---
**Author:** ![Image](https://sellersasksellers.com/user_avatar/sellersasksellers.com/image/32/55_2.png) [@Image](https://sellersasksellers.com/u/Image)\ **Post date:** [December 18, 2024, 9:50pm UTC](https://sellersasksellers.com/t/update-to-the-fba-inventory-reimbursement-policy/5252/4 "2024-12-18T21:50:20Z")
Yes we ran into this coming home early since sales evaporated today. Typical “Cliff Day” nothing will arrive by Christmas. Here is the main issue, hidden in the stupid nesting on the NSFE from @ Jim\_Amazon > Manufacturing cost is the cost to acquire, purchase, or produce the item. It excludes costs such as shipping, handling, customs duties, or other costs. Here is the problem with that, it ignores “burdened costs” to understand you need to understand CoGS (Cost of Goods Sold) plus all other expenses. Like "shipping, handling, customs (where applicable) and other costs. PLUS rent, taxes, local, state, federal, county etc.. And lights, power, heat, cooling, condo or unit fees, storage fees, transportation fees, shipping both inbound and outbound. Plus salaries, personnel taxes, unemployment, Social Security and Medicare tax all spit and paid by both the employee and employer. Then you have holiday pay, vacation pay, PTO (Payed Time Off), disability insurance, family leave pay, medical, dental, eye, drug, etc., etc.. I was going to post this on the NSFE however, I knew it would be a waste of time. _If you do not run a company you have no clue about all this, and the stuff I could not remember when venting about this stupid Amazon idea. thanks @VTR for bringing it up where sellers understand (Ask) sellers._ ---
**Author:** ![ASV\_Vites](https://sellersasksellers.com/user_avatar/sellersasksellers.com/asv_vites/32/48_2.png) [@ASV\_Vites](https://sellersasksellers.com/u/ASV_Vites)\ **Post date:** [December 18, 2024, 9:50pm UTC](https://sellersasksellers.com/t/update-to-the-fba-inventory-reimbursement-policy/5252/5 "2024-12-18T21:50:57Z")
I’m wondering what took them so long to go in this direction. You’ll get just your cost back. Forget about what you might have made if they didn’t lose it or damage it. Forget about what it cost you to get it to FBA or the placement fees you may have paid. Forget about the labor it took to prep what they lost or damaged. You don’t need to provide your actual cost if you go with their estimate. The volume on our reimbursements isn’t something that concerns me but if they lost a pallet, that would be a different story. I knew when I saw the email that this would stir up some anger, and rightfully so. ---
**Author:** ![VTR](https://sellersasksellers.com/user_avatar/sellersasksellers.com/vtr/32/14279_2.png) [@VTR](https://sellersasksellers.com/u/VTR)\ **Post date:** [December 18, 2024, 9:52pm UTC](https://sellersasksellers.com/t/update-to-the-fba-inventory-reimbursement-policy/5252/6 "2024-12-18T21:52:06Z")
I would not be surprised if this expands to reimbursements for Buy Shipping reimbursements in the future. ---
**Author:** ![VTR](https://sellersasksellers.com/user_avatar/sellersasksellers.com/vtr/32/14279_2.png) [@VTR](https://sellersasksellers.com/u/VTR)\ **Post date:** [December 18, 2024, 10:01pm UTC](https://sellersasksellers.com/t/update-to-the-fba-inventory-reimbursement-policy/5252/7 "2024-12-18T22:01:35Z")
I wonder how hard it is to start a company in the Caymans to skip invoices through with an inflated COGS, that won’t affect customs clearance? ![200](https://sellersasksellers.com/uploads/default/original/2X/5/5b9bb60da49353eebbd01d253571ebe8008125c8.gif) ---
**Author:** ![HobbesIsMyTiger](https://sellersasksellers.com/user_avatar/sellersasksellers.com/hobbesismytiger/32/8000_2.png) [@HobbesIsMyTiger](https://sellersasksellers.com/u/HobbesIsMyTiger)\ **Post date:** [December 18, 2024, 10:02pm UTC](https://sellersasksellers.com/t/update-to-the-fba-inventory-reimbursement-policy/5252/8 "2024-12-18T22:02:46Z")
> [@VTR](#): > > more predictability $0 is predictable. Not helpful, but very predictable. > [@VTR](#): > > This will help drive a more consistent approach that works as we support sellers with supply chain services across their sales channels. This totally baffles me. It also screams “LIES!” at me when I read it. > [@VTR](#): > > We’ll provide a manufacturing cost estimate for you. This estimate is based on a comprehensive evaluation of comparable products sold by Amazon, by other sellers, and through wholesale channels. First, “comprehensive” my butt. Second, this is just more Amazon automation. More poorly coded, untested, badly trained AI driven automation. Because it worked so well before. > [@VTR](#): > > You can provide your manufacturing costs directly. If you don’t provide your own costs, we’ll automatically apply our estimate which you can change when you’re ready. Ah, but you will reject our invoices, deny our claims, and then reimburse us nothing. So yeah, that’s a thing that we can see coming a mile away. Because, again, we have been here before. ---
**Author:** ![VTR](https://sellersasksellers.com/user_avatar/sellersasksellers.com/vtr/32/14279_2.png) [@VTR](https://sellersasksellers.com/u/VTR)\ **Post date:** [December 18, 2024, 10:03pm UTC](https://sellersasksellers.com/t/update-to-the-fba-inventory-reimbursement-policy/5252/9 "2024-12-18T22:03:57Z")
When you quote it from my post like that it makes me look like an A hole. 🤣 ---
**Author:** ![HobbesIsMyTiger](https://sellersasksellers.com/user_avatar/sellersasksellers.com/hobbesismytiger/32/8000_2.png) [@HobbesIsMyTiger](https://sellersasksellers.com/u/HobbesIsMyTiger)\ **Post date:** [December 18, 2024, 10:04pm UTC](https://sellersasksellers.com/t/update-to-the-fba-inventory-reimbursement-policy/5252/10 "2024-12-18T22:04:15Z")
“Ooops” 😉 ---
**Author:** ![VTR](https://sellersasksellers.com/user_avatar/sellersasksellers.com/vtr/32/14279_2.png) [@VTR](https://sellersasksellers.com/u/VTR)\ **Post date:** [December 18, 2024, 10:07pm UTC](https://sellersasksellers.com/t/update-to-the-fba-inventory-reimbursement-policy/5252/11 "2024-12-18T22:07:40Z")
This will be very damaging for low margin items as it will assume a percentage of your category cost which will always be a lower cost. – For those of you reading, now is the time to get your manufacturer/supply chain to raise your invoice price and then do volume/ advertising/ best friend on Earth/ mom’s bridge partner discounts on the back end. Treat Amazon like a car dealer and show them your “invoice” price ignoring the 30% discounts behind the line as they say. ---
**Author:** ![ASV\_Vites](https://sellersasksellers.com/user_avatar/sellersasksellers.com/asv_vites/32/48_2.png) [@ASV\_Vites](https://sellersasksellers.com/u/ASV_Vites)\ **Post date:** [December 18, 2024, 10:10pm UTC](https://sellersasksellers.com/t/update-to-the-fba-inventory-reimbursement-policy/5252/12 "2024-12-18T22:10:39Z")
> [@VTR](#): > > For those of you reading, now is the time to get your manufacturer/supply chain to raise your invoice price Something tells me that Amazon has thought of this and has a threshold of tolerance over their BS estimate. It’s also sort of fraud but an eye for an eye, ((Ay Mr. Walker (Fear - Movie)) ---
**Author:** ![VTR](https://sellersasksellers.com/user_avatar/sellersasksellers.com/vtr/32/14279_2.png) [@VTR](https://sellersasksellers.com/u/VTR)\ **Post date:** [December 18, 2024, 10:16pm UTC](https://sellersasksellers.com/t/update-to-the-fba-inventory-reimbursement-policy/5252/13 "2024-12-18T22:16:01Z")
> [@ASV\_Vites](#): > > Something tells me that Amazon has thought of this and has a threshold of tolerance over their BS estimate. Am I the only one seeing Amazon treating sellers like United Heath Care treats patients… Deny, Delay, Depose… One day they will deny reimbursement to someone like Marvin Heemeyer, and Andy Jassy will wake up early to a text of a D9 dozer driving through of the fulfillment centers. Or to someone like Andrew Joseph Stack III and the next day a crane is pulling a Piper Archer out of an Amazon office complex. $3400 reimbursement vs. half of a fulfillment center destroyed, may make shareholders or the board of directors think about things. ---
**Author:** ![ASV\_Vites](https://sellersasksellers.com/user_avatar/sellersasksellers.com/asv_vites/32/48_2.png) [@ASV\_Vites](https://sellersasksellers.com/u/ASV_Vites)\ **Post date:** [December 18, 2024, 10:19pm UTC](https://sellersasksellers.com/t/update-to-the-fba-inventory-reimbursement-policy/5252/14 "2024-12-18T22:19:38Z")
Amazon is the very definition of fraud in every way. I tell you all only half the BS we deal with. I’m very surprised that there hasn’t been an event like you described yet. Amazon has ruined, I would venture to say, hundreds of thousands of lives. I’m sure hundreds if not thousands of people have ended their own lives because of Amazon. It’s a terrible place to do business but the alure of the potential just keeps it going and sellers coming to bat, even with all the info that’s avail out there about what a terrible place to do business that it is. The fact is, Amazon has made a lot of people very rich. Sadly, almost all of them are dealing in fraud themselves, even some of the biggest and seemingly legit sellers. ---
**Author:** ![VTR](https://sellersasksellers.com/user_avatar/sellersasksellers.com/vtr/32/14279_2.png) [@VTR](https://sellersasksellers.com/u/VTR)\ **Post date:** [December 18, 2024, 10:22pm UTC](https://sellersasksellers.com/t/update-to-the-fba-inventory-reimbursement-policy/5252/15 "2024-12-18T22:22:36Z")
> [@ASV\_Vites](#): > > The fact is, Amazon has made a lot of people very rich Yup, it used to be about how you made your money back in the day. Now its almost all pure greed. ---
**Author:** ![Lost\_My\_Marbles](https://sellersasksellers.com/user_avatar/sellersasksellers.com/lost_my_marbles/32/2919_2.png) [@Lost\_My\_Marbles](https://sellersasksellers.com/u/Lost_My_Marbles)\ **Post date:** [December 18, 2024, 10:45pm UTC](https://sellersasksellers.com/t/update-to-the-fba-inventory-reimbursement-policy/5252/16 "2024-12-18T22:45:56Z")
![Untitled](https://sellersasksellers.com/uploads/default/original/2X/1/1650e6842209e7837864affabf8ac5f2a483f5c2.jpeg) Shush! ---
**Author:** ![VTR](https://sellersasksellers.com/user_avatar/sellersasksellers.com/vtr/32/14279_2.png) [@VTR](https://sellersasksellers.com/u/VTR)\ **Post date:** [December 18, 2024, 10:53pm UTC](https://sellersasksellers.com/t/update-to-the-fba-inventory-reimbursement-policy/5252/17 "2024-12-18T22:53:32Z")
> [@ASV\_Vites](#): > > Sadly, almost all of them are dealing in fraud themselves, even some of the biggest and seemingly legit sellers. Let us not forget consultants… Cough Cough Ed. ---
**Author:** ![HobbesIsMyTiger](https://sellersasksellers.com/user_avatar/sellersasksellers.com/hobbesismytiger/32/8000_2.png) [@HobbesIsMyTiger](https://sellersasksellers.com/u/HobbesIsMyTiger)\ **Post date:** [December 18, 2024, 11:13pm UTC](https://sellersasksellers.com/t/update-to-the-fba-inventory-reimbursement-policy/5252/18 "2024-12-18T23:13:13Z")
> [@VTR](#): > > This will be very damaging for low margin items as it will assume a percentage of your category cost which will always be a lower cost. This assumes Amazon’s method of estimating an item’s manufacturing cost is to just assign a percentage of the sale cost, and that it will be consistent for all price brackets. However, Amazon promised “a comprehensive evaluation of comparable products sold by Amazon, by other sellers, and through wholesale channels” and this approach is not “comprehensive.” 🙄 Amazon is making it sound like the estimates will be generated by something more akin to the high/low price bot, a completely opaque, borderline arbitrary bot that cannot be overridden and is accountable to no human. I find this more likely and scarier. People think when the robots take control it will be like Skynet where they all rise up at once and overthrow us. I think it will be more like this, where they take control over our lives one little bit at a time until we look around and wonder when was the last time we decided a single thing. And it all started with telling me I can’t raise my price. ---
**Author:** ![Lost\_My\_Marbles](https://sellersasksellers.com/user_avatar/sellersasksellers.com/lost_my_marbles/32/2919_2.png) [@Lost\_My\_Marbles](https://sellersasksellers.com/u/Lost_My_Marbles)\ **Post date:** [December 18, 2024, 11:29pm UTC](https://sellersasksellers.com/t/update-to-the-fba-inventory-reimbursement-policy/5252/19 "2024-12-18T23:29:11Z")
> [@HobbesIsMyTiger](#): > > Amazon promised “a comprehensive evaluation of **comparable products** sold by Amazon, by **other sellers** , and through wholesale channels” and this approach is not “comprehensive.” > [@HobbesIsMyTiger](#): > > estimates will be generated by something more akin to the high/low price bot Like from Temu (low ball) and Alibaba (high ball)? … or from Amazon Haul … or maybe not at all? … (it rhymed so we went with it) **Amazon** : _“You owe us money for your product we lost as we calculate that it didn’t cost as much as the storage fees we charged you while we had temporary knowledge of where your product was.”_ ---
**Author:** ![Thelunatick](https://sellersasksellers.com/user_avatar/sellersasksellers.com/thelunatick/32/6233_2.png) [@Thelunatick](https://sellersasksellers.com/u/Thelunatick)\ **Post date:** [December 19, 2024, 1:38am UTC](https://sellersasksellers.com/t/update-to-the-fba-inventory-reimbursement-policy/5252/20 "2024-12-19T01:38:42Z")
And I thought it was bad when they decided to reimburse you minus the amazon commission. seriously lets look at this Sale price $100 Amazon commission $15 FBA fees $10 Cost to ship $10 COGS: $25 Cost of shipping per item $2 Profit $38 If lost reimbursement $25 -$2 -$10 $13 net reimbursement. How amazon saves money on their incompetience. [Next page](https://sellersasksellers.com/t/update-to-the-fba-inventory-reimbursement-policy/5252.md?page=2)