Amazon reimbursement policy updates 2025

Amazon’s latest reimbursement policy updates have shifted the way sellers get paid and not in your favor. Instead of getting reimbursed based on your selling price, you’ll often be paid only your manufacturing cost. If you don’t submit your real costs properly, Amazon will estimate them usually on the lower side. 

Shipping fees and extra costs? No longer reimbursed.

Missed deadlines, missing paperwork, or relying too much on Amazon’s systems could now mean leaving thousands of dollars behind. Staying organized, filing claims quickly, and documenting everything is more critical than ever.

In this blog, we’ll break down exactly what changed in Amazon’s 2025 reimbursement rules and what steps you need to take now to protect your profits and avoid unnecessary losses.

What changed in Amazon reimbursement policy 2025

#1 Amazon shifts reimbursements to manufacturing cost

In 2025, Amazon changed its reimbursement policy for lost or damaged inventory. Now, if an item is lost or damaged before a customer buys it, Amazon reimburses you based on your manufacturing cost, not your selling price.

This means you could get less money back unless you properly record and submit your actual product costs. For items lost after a customer places an order, Amazon still reimburses based on the selling price. Staying updated and organized is now more important than ever.

#2  Lost or damaged before a customer buys

In 2025, Amazon updated its reimbursement policy for lost or damaged items. If your product is lost or damaged before a customer places an order, Amazon now reimburses you based on your manufacturing cost, not your selling price. 

This means you must provide your actual cost details to avoid Amazon estimating a lower value. It’s a big shift that makes tracking and uploading your product costs more important than ever to protect your profits. Here, you can opt for Amazon reimbursement services that recover money for lost, damaged, or mishandled inventory that Amazon may have missed.

#3 For items lost after a customer order

Under Amazon’s updated 2025 reimbursement policy, if an item is lost after a customer places an order, sellers still receive the full selling price as reimbursement. This is an important distinction because even though Amazon now reimburses based on manufacturing costs for other situations, once a customer buys, your payout is protected. Staying on top of your orders and tracking lost shipments is key to making sure you claim the full amount you’re owed.

#4 Shipping and other extra costs are not included

In 2025, Amazon updated its reimbursement policy, and one major change is that shipping fees, prep costs, and other extra charges are no longer reimbursed. If your item is lost or damaged, Amazon only pays you for the product cost, not any additional expenses you may have incurred. 

Sellers now need to factor in these non-reimbursed costs when calculating potential losses and stay extra careful with inventory management to protect their profits.

#5 If you don’t give your cost, Amazon will guess it
In 2025, Amazon updated its reimbursement rules. Now, if your product is lost or damaged before a customer orders, Amazon reimburses you based on your manufacturing cost, not the selling price. If you don’t provide your actual cost, Amazon will estimate it often lower than your real cost. 

This change means sellers must upload accurate cost details with proof like invoices to avoid losing money. Keeping your costs updated is now essential to protect your reimbursements.

How to give your product cost

With Amazon’s new reimbursement rules in 2025, providing your product cost correctly has become more important than ever. When an item is lost or damaged, Amazon needs to know what it costs you to make or purchase the product, not what you sell it for.

1. Let Amazon use their estimate

If you don’t upload your cost, Amazon will try to guess it based on similar products or historical data. However, their estimate might be lower than your real cost, which means you could get paid less than you should.

2. Upload your actual cost with proof (like an invoice)

The better option is to upload your real manufacturing or purchase cost. You’ll need to provide proof, such as an invoice or supplier bill, showing the actual price you paid. This helps Amazon calculate your reimbursements more accurately and ensures you don’t lose money.

3. You can change the cost later if needed
   If your cost changes because of a new supplier or pricing adjustment, you can go back into your seller account and update the information with new documents.

By taking a few minutes to upload accurate costs and keeping your invoices organized, you protect your profits and make sure Amazon reimburses you fairly when something goes wrong. Being proactive now can save you a lot of hassle and money later.

Deadlines to claim

When it comes to Amazon reimbursements, timing is everything. In 2025, Amazon set clear deadlines for when you must file claims for lost or damaged inventory. Missing these deadlines could mean losing the money you’re owed.

• Lost in the warehouse: You must file a claim within 60 days of the item being lost.
• Customer returns: You have between 60 and 120 days after the refund to file a claim if the returned item is missing or damaged.
• Lost during removal shipping: If your inventory gets lost while being removed from an Amazon warehouse, you have 15 to 75 days to submit a claim.
• Returned to you but damaged: If an item comes back to you damaged, you must claim it within 60 days. 

To stay protected, check your reports regularly, track deadlines carefully, and act fast when you spot an issue. With the Amazon reimbursement policy updates in 2025 making it harder to recover full losses, choosing the best Amazon reimbursement service is more important than ever to protect your profits.

What you should do now

With Amazon’s updated reimbursement policy in 2025, sellers need to be much more careful about how they manage product costs and claims. If you want to make sure you are fully reimbursed when something goes wrong, here are the important steps you should take:

• Enter your real product cost in your seller account: Make sure you upload your actual manufacturing or purchase cost into Amazon’s system. Don’t leave it blank, or Amazon will guess your cost—and that guess could be much lower than what you paid.
• Save your invoices and cost documents: Always keep a copy of your supplier invoices, receipts, or any proof of cost. Having these ready makes it easier to file a claim and prove your actual product value if needed.
• Check regularly for missing or damaged items: Don’t wait for Amazon to alert you. Review your inventory reports and customer return reports often. Catching issues early gives you enough time to file a claim before deadlines pass.
• File claims quickly—don’t miss the deadlines: Amazon has strict time limits for different types of claims. Some claims must be filed within 60 days, others within 120 days. Filing late could mean you lose the right to reimbursement.
• Think about insurance for expensive products: If you sell high-value items, consider buying extra insurance. Even with Amazon’s reimbursement process, you might not recover the full selling price for lost or damaged goods. Insurance can help you cover the gap.

Final thoughts 

With Amazon’s 2025 reimbursement policy updates, sellers can no longer afford to be casual about lost or damaged inventory. Providing accurate product costs, tracking claims closely, and meeting deadlines are now essential to protect your profits. Small mistakes like missing documents or relying on Amazon’s cost estimates could lead to bigger losses over time. 

Staying organized and acting quickly will keep you ahead. If managing all these changes feels overwhelming, working with experienced Amazon consultants can help you navigate the new rules and ensure you recover every dollar you’re owed.