Amazon FBA Reimbursement Changes 2025: What Sellers Must Do Now

Amazon is making a major change that could significantly impact sellers who rely on FBA reimbursements. As of March 10, 2025, Amazon will no longer reimburse sellers based on the retail value of Amazon FBA lost and damaged inventory reimbursements. Instead, sellers will only receive compensation for the manufacturing cost. This shift transforms reimbursements from a potential profit center into a loss factor, potentially squeezing margins even further.

For years, sellers who experienced inventory discrepancies—whether due to items getting lost in fulfillment centers, damaged in transit, or mishandled by Amazon—could rely on reimbursement at full retail price. This policy helped sellers recover not just their cost of goods but also a portion of their potential profit. But with Amazon’s Amazon FBA reimbursement policy changes 2025, that’s all about to change.

To gain deeper insights into these changes, we interviewed Yoni Mazor from Getida, a leading expert in FBA reimbursements. Yoni provided valuable perspectives on how sellers can navigate these updates and what it means for the future of Amazon businesses. As Yoni pointed out, “When Amazon wants you to make money, you’ll make a lot of money. But when they change the rules, you need to be prepared to adapt quickly.”

Amazon FBA Reimbursement 2025: How New Rules Affect Sellers

Here’s how the new policy will impact sellers:

1. Lower Reimbursements: Instead of receiving $30 for a lost item that sells at that price, Amazon will now only reimburse sellers for the manufacturing cost—say, $5. This doesn’t include shipping, import duties, or other logistical expenses.

2. Increased Administrative Work: Amazon’s system will estimate manufacturing costs, but sellers will have to upload invoices if they want to correct incorrect assumptions. This adds an extra layer of work.

3. Revealing Sensitive Supplier Information: In submitting invoices to adjust reimbursements, sellers may expose their manufacturing sources and cost structures, a concern for those wanting to protect their supply chains.

4. Higher Risk for Thin-Margin Businesses: Sellers operating on low margins will be hit hardest. What was once an operational safety net is now another cost factor that could push some businesses into unprofitability.

As Yoni stated in our interview, “For some sellers, reimbursements accounted for up to 14% of their profits. Losing that margin completely changes the game.”

Why Is Amazon Changing Its FBA Reimbursement Policy?

While Amazon hasn’t publicly provided a detailed explanation, the shift seems aimed at reducing costs and ensuring that reimbursement policies aren’t being exploited for profit. But the broader concern is whether this move disregards the operational challenges sellers face, especially those managing high shipping and fulfillment costs.

Yoni summed it up well: “Amazon operates like its own kingdom with its own rules. And sometimes those rules change overnight, leaving sellers scrambling.”

What Can Sellers Do?

Given these changes, sellers need to rethink their strategies and adapt quickly. Here are a few ways to mitigate the impact:

• Optimize Inventory Management: Minimize FBA losses by tracking inventory movements closely and ensuring accurate shipment records.

• Monitor Amazon’s Reimbursement Calculations: Regularly check reimbursement claims to ensure accuracy and submit invoices where necessary.

• Negotiate Supplier Costs: If Amazon will only reimburse the manufacturing cost, it’s crucial to negotiate lower production expenses where possible.

• Diversify Sales Channels: Don’t rely solely on Amazon. Platforms like Walmart, Shopify, and TikTok Shop are growing rapidly and offer alternative revenue streams.

• Leverage Multi-Channel Fulfillment (MCF): Consider fulfilling some orders through Amazon’s MCF but maintaining control over high-risk inventory.

• Explore Private Labeling & Brand Protection: Having a strong brand presence with repeat customers can offset potential losses from Amazon’s changes.

The Bigger Picture: What This Means for E-Commerce

This policy shift is another sign that Amazon is evolving into a platform where only the most resilient and well-structured sellers thrive. As competition increases, the “survival of the fittest” mentality is becoming more evident. Established brands with strong margins will likely weather this storm, but smaller sellers with razor-thin margins might struggle.

At the same time, other platforms are watching and learning. Walmart, TikTok Shop, and independent e-commerce stores are growing as sellers seek more control over their businesses. The lesson here? Adaptability is key. Sellers who embrace change, diversify, and refine their strategies will continue to succeed, regardless of the challenges Amazon throws their way.

As Yoni warned, “The ones who have strong brands and diversified sales channels will survive. Those who rely too much on Amazon alone are at risk.”

Key Takeaways and Next Steps

Amazon’s new reimbursement policy isn’t just a minor tweak—it’s a game-changer. If you’re selling on Amazon, now is the time to reassess your strategy. Start optimizing your cost structure, refining your logistics, and exploring other sales channels. The sellers who prepare today will be the ones who thrive tomorrow.

Need help understanding how these changes affect your business? Our team at Cabilly & Co. specializes in helping e-commerce sellers navigate the complexities of Amazon’s changing policies. Contact us today to make sure your business stays ahead of the curve.