The 2025 Amazon reimbursement change, explained (and how much it's quietly costing you)

If your FBA payouts for lost or damaged inventory look smaller this year, you're not imagining it. Amazon changed the math on March 10, 2025, and most sellers found out the hard way — by comparing a reimbursement to what the same unit would have sold for and wondering where the rest went.

What changed. Before March 2025, when Amazon lost or damaged a unit inside a fulfillment center before a customer ordered it, they usually reimbursed near retail value. As of March 10, 2025, that's gone: for inventory lost/damaged before a customer order, Amazon reimburses based on your manufacturing cost — what you paid to source or produce the unit, not what it sells for. Amazon defines it narrowly (price to acquire/produce) and excludes freight, handling, customs, duties — so their number is often below your true landed cost. Unchanged: losses after an order are still reimbursed at sale price minus fees.

Why it quietly costs you. If you never tell Amazon your cost, they estimate it from similar listings; industry write-ups put the drop at ~40-60% vs old retail payouts (direction, not a guarantee). Two sellers losing the identical unit get different checks — the one who documented their cost gets a defensible number; the one who left it blank gets Amazon's guess, rarely generous.

Check your own account with two reports: (1) Reimbursements report (Reports → Fulfillment → Payments → Reimbursements) — per-unit amounts on lost/damaged cases vs your COGS + sale price; (2) Inventory Adjustments report (Reports → Fulfillment → Inventory → Inventory Adjustment) — units marked lost/misplaced/damaged; some have a matching reimbursement, some don't. Lining them up = what a reimbursement tool does.

Do this week: add your COGS in Seller Central so Amazon reimburses against your real number. Highest-leverage, free. (See Article C.) If you'd rather see the gap first, Costback's free calculator reads your own Reimbursements report and flags claim-eligible discrepancies you review + file yourself — never logs into your account, no cut. → getcostback.com