Amazon sellers, a major policy shift is coming, and it’s going to affect how much money you can recover when dealing with lost or damaged inventory. Starting March 10, 2025, Amazon will no longer reimburse sellers for the full sale price of lost inventory. Instead, reimbursements will only cover the manufacturing cost of the product.

Let’s break down what this means for you.

How Reimbursements Worked Before

Previously, when Amazon lost or damaged your inventory, you were reimbursed based on the sale price of the item, minus Amazon’s typical selling fees (approximately 30%). For example: If your item cost $5 to manufacture and was sold for $25, Amazon would refund you roughly $17.50 (retail price after deducting fees).

This system ensured sellers received a significant portion of the lost revenue, covering costs and helping maintain profitability.

What’s Changing After March 10, 2025

Under the new policy, Amazon will reimburse sellers based only on the manufacturing cost of the item. Using the same example:If your item cost $5 to manufacture and was sold for $25, Amazon will now only reimburse you $5, regardless of the potential profit you could have made.
This change represents a 72% decrease in seller cash flow for lost or damaged inventory.

Amazon’s Policy Ignores the True Costs to Sellers

One of the most frustrating aspects of this policy change is that it completely ignores the time value of money and the immense effort sellers put into maintaining their inventory pipeline.

Think about it: The time, energy, and effort it takes to reorder inventory.
The logistical challenges of organizing freight shipments and ensuring goods are transported efficiently.
The waiting period while goods are produced, shipped internationally, and checked into Amazon’s warehouses.
The fact that you’ve already invested significant time and resources into making these products available for sale, only for them to be lost or damaged.

These are real costs that go far beyond the raw manufacturing expenses. When Amazon reimburses only the manufacturing cost, they’re essentially telling sellers that all the time and effort invested is worth nothing. For many small and medium-sized businesses, this policy isn’t just about losing money—it’s about losing the ability to scale and grow their operations efficiently.

The Impact on Sellers

This new policy puts a heavier burden on sellers, especially small and medium-sized businesses that rely on FBA to streamline operations if they are a shipment you might not have the inventory to stay in stock and might have been relying on that cashflow to pay your overhead. Here’s how this change could affect your business:

Lower Profitability: Reduced reimbursements will shrink your overall margin profile as lost units will no longer, making it harder to cover costs and maintain profitability.
Increased Financial Risk: Sellers will bear the brunt of inventory losses, which could erode trust in the FBA system.
Greater Need for Accurate Claims: With less money at stake, it’s more critical than ever to ensure you’re filing accurate and timely reimbursement claims.

How to Protect Your Business

Navigating these changes may seem overwhelming, but there are steps you can take to minimize losses and safeguard your profits. One of the most effective ways to stay ahead is by addressing inbound shipment discrepancies.

These discrepancies—such as incorrect inventory counts or missing items—cost sellers thousands of dollars every year. Unfortunately, many sellers overlook these opportunities because the claims process is tedious and time-consuming.That’s where Getida can help.

Why I Recommend Getida
Getida is a trusted reimbursement solution that simplifies the claims process and ensures sellers recover as much as possible. Here’s why I recommend it to my clients:

✅ They recover funds 3X faster than manual processes, saving you time and effort. No upfront costs or hidden fees.

✅ They only take a percentage of what they recover, so it’s completely risk-free.

✅ Runs in the background. Getida continuously monitors and submits claims for you, so you can focus on growing your business instead of dealing with tedious admin work.

With the March deadline fast approaching, now is the time to get proactive about protecting your cash flow. Don’t Leave Money on the Table Amazon’s policy change may seem daunting, but taking action now can help you adapt and thrive.

By leveraging tools like Getida and staying on top of claims, you can minimize the impact of these changes on your business.