Effective in March! ! Big changes to Amazon FBA compensation policy

Effective in March! ! Big changes to Amazon FBA compensation policy


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Recently, Amazon US has made another big move! This time it is an update to the FBA inventory compensation policy.

Amazon issued an announcement stating that starting from March 10, 2025, for inventory lost or damaged before customers place an order, Amazon will compensate based on the "manufacturing cost" of the affected goods .


The difference between these two words makes a big difference for sellers! The "manufacturing cost" here refers to the cost of the seller to purchase the goods, including the cost of purchasing from manufacturers, wholesalers or distributors, or the cost of producing by themselves, but does not include other costs such as shipping, handling fees, tariffs, etc.


01 What are the changes in the new policy?


Summarize:

In the future, if the seller does not provide proof of manufacturing costs, Amazon will directly use the platform’s estimated value. If your product sells for $100, but the platform estimates the cost to be only $20, then the compensation amount will only be $20!


02 New tools are coming soon


In order to allow sellers to update their manufacturing costs, Amazon will launch a page called "Manage Your Manufacturing Costs" in the background. The button has appeared, but it is currently inaccessible. It is expected to be officially opened in mid-to-late January.

Sellers can determine manufacturing costs in two ways:

  • Amazon Estimates: Estimates based on sales data for similar products from Amazon, other sellers, and wholesale data.

  • Sellers provide their own costs: Sellers can provide proof of their manufacturing costs. If the seller does not provide costs, the platform will automatically apply its own estimates.

If the seller provides the manufacturing cost data himself, Amazon also provides an input path in the seller's backend. This path has not yet been built. The button has appeared in the backend, but it cannot be clicked to enter. Sellers can only click to enter and set it up starting from January of next year.


03 How to deal with it?

According to feedback from sellers in seller communities and forums, many sellers are not happy with the platform's new policies.

It is understood that Amazon used to compensate for lost or damaged inventory based on the selling price, and sellers could still make a profit, but now it only compensates for the cost.

In simple terms, the original compensation was that if Amazon lost the seller's goods and could not sell them, it would compensate the normal sales profit. Now, it is more like compensating the cost price, but the seller's headquarter, stocking, and sales rhythm may all be messed up, but there is no compensation, which is equivalent to transferring the risk to the seller.

At present, the policy has not been fully implemented, and sellers can adapt to the policy first and make some preparations if necessary. Some sellers suggest that if Amazon compensates based on the manufacturing cost of the product invoice, then the sellers of the goods should also issue invoices as much as possible.

Amazon's FBA policies have been changing one after another, and Amazon's European and American sites have also made a series of adjustments and optimizations to sales commissions and FBA fees in 2025. Sellers should pay close attention and adjust their operating policies in a timely manner to prepare for next year and ensure maximum profits.


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