Key Amazon Reimbursement Policy Details, Changes, and Updates

Amazon reimbursement policies have changed significantly since 2024. Sellers now face shorter claim windows, sourcing-based reimbursement, automated claim processing, and reimbursement caps for certain fulfillment programs. Understanding these adjustments is critical when recovering eligible funds and avoiding missed reimbursement opportunities.  

Here’s a timeline of the critical changes: 

Amazon Reimbursement Policy Overview

Amazon reimbursement is the process Amazon uses to compensate sellers when inventory is lost, damaged, mishandled, or otherwise impacted while under their responsibility. 

Here's a look at the eligible claim scenarios for sellers. 

• Lost or damaged inventory: Ensures sellers can recover funds for inventory that is lost or damaged while under the retailer’s responsibility. This is especially critical for Fulfillment by Amazon (FBA) sellers who may experience discrepancies in inventory handling, making it essential to understand and leverage these reimbursement options. 

• Shipment to Amazon claims or missing inbounds: When inventory shipped to an Amazon fulfillment center is partially or completely missing and not accounted for upon arrival. 

• Canceled shipments: Reimbursement claims related to FBA shipments that were canceled but still resulted in charges or lost inventory. 

• Lost in transit: Items lost during shipping either from sellers to Amazon fulfillment centers or from fulfillment centers to customers. 

• FBA customer return claims: Reimbursements related to returned items, such as when the returned product is not restocked properly, goes missing, or is incorrectly classified as unsellable. 

• Removal claims: Claims for inventory lost or damaged during the removal process when items are returned to sellers or disposed of by Amazon. 

• Reversals: When Amazon initially reimburses a seller but later reverses the decision, potentially leading to disputes and follow-up claims for proper resolution. 

Amazon's Sourcing-Based Reimbursement Model Explained 

Amazon now uses a sourcing-based model for eligible FBA inventory reimbursement claims. Instead of reimbursing sellers based on a product's selling price, Amazon calculates reimbursement using the item's manufacturing (or sourcing) cost. The change, which took effect in 2025, reduced reimbursement amounts for many sellers and made accurate cost documentation more important than ever.  

What This Means for Sellers 

When inventory is lost or damaged during fulfillment, Amazon now determines reimbursement using either a sourcing cost estimate or cost information provided by the seller. To support this process, Amazon offers the Inventory Defect and Reimbursement (IDR) portal, where sellers can review and submit manufacturing cost data used for reimbursement calculations. 

Because reimbursements are now based on manufacturing cost rather than selling price, maintaining accurate cost information has become increasingly important. Sellers should regularly review reimbursement activity, verify reimbursement amounts, and ensure manufacturing cost data is up to date. While the model creates a more standardized approach to inventory claims, expenses such as shipping, labeling, packaging, and other operational costs may not be reflected in reimbursement calculations. 

Best Practices for Managing Cost-Based Reimbursements 

• Review manufacturing cost estimates in the IDR portal and update inaccurate information when necessary. 

• Maintain current Cost of Goods Sold (COGS) data in Seller Central for all active SKUs. 

• Keep detailed records of manufacturing, shipping, labeling, and packaging costs. 

• Monitor reimbursement reports regularly to verify claim outcomes and reimbursement amounts. 

• Consider reimbursement software or managed services to help identify missed recovery opportunities and streamline claim management. 

Related Reading: 5 Expert Strategies to Conduct FBA Audits for Sellers, Agencies, and Aggregators 

Amazon Reimbursement Claim Deadlines and Automated Reimbursements 

From Amazon's perspective, these updates create a more consistent reimbursement process and reduce administrative complexity. For sellers, however, this places greater emphasis on inventory visibility, accurate cost data, and proactive claim management.  

Automated Lost Inventory Reimbursement 

As part of Amazon's automated reimbursement process, eligible U.S. sellers may receive reimbursement for certain types of lost inventory without submitting a manual claim. 

While sellers should still monitor their accounts for discrepancies, the policy does reduce at least some of the administrative burden associated with these cases. Automated reimbursements can be tracked in the Reimbursements Report within Seller Central. 

Amazon's automated reimbursement process reduces the need for manual claims by automatically issuing reimbursements for certain lost or damaged inventory. Sellers can track these reimbursements directly in Seller Central, providing greater visibility into claim activity. 

However, automation doesn’t cover every scenario. Sellers may still need to submit manual claims for issues such as removal losses and inventory discrepancies that are not automatically identified by Amazon. 

Automatic vs. Manual Claims 

Not every reimbursement claim is handled the same way. Amazon automatically processes some claim types, while others still require sellers to identify issues and submit claims manually. 

Here’s a helpful guide: 

To maximize chances of recovering unclaimed funds, sellers can combine Amazon’s automated efforts with a trusted Amazon reimbursement tool, which regularly performs reimbursement audits to identify eligible claims and helps recover funds Amazon misses or doesn’t file automatically. 

Reimbursement Claim Eligibility Windows 

Amazon has tightened the timeframes for filing manual claims in both the U.S. and the U.K. 

Here’s a comprehensive breakdown of the new deadlines by marketplace: 

Amazon’s reduction in claim windows in the U.S. and U.K. requires sellers to identify and file eligible claims significantly faster than under previous policies.  

Automated Reimbursements 

Amazon now automatically reimburses many cases involving FBA inventory that is lost or damaged within its fulfillment network, reducing the need for sellers to manually submit certain claim types. However, sellers should continue reviewing reimbursement reports, validating reimbursement amounts, and filing claims for issues that fall outside Amazon's automated processes.  

With most reimbursement claim windows now limited to 60 days, sellers have less time to identify discrepancies and recover eligible funds. Regular audits of inventory, returns, removals, and reimbursement activity remain essential to avoid missed recovery opportunities. 

For sellers managing large catalogs or high transaction volumes, reimbursement software and managed recovery services can help automate claim monitoring, identify exceptions, and ensure eligible reimbursements are pursued before filing deadlines expire.  

Multi-Channel Fulfillment (MCF) Reimbursement Caps

Amazon introduced marketplace-specific reimbursement caps for Multichannel Fulfillment (MCF) orders in August 2024. These caps represent the maximum amount Amazon will reimburse when inventory is lost or damaged during the fulfillment process. 

As of 2026, Amazon has not publicly announced any changes to these marketplace-specific reimbursement limits. 

Note: Amazon’s 2024 announcement included a Japan reimbursement example that contained calculation inconsistencies. As a result, Japan is not included in the table above. 

What This Means for Sellers 

• Reimbursement caps provide greater predictability when inventory is lost or damaged. 

• The maximum reimbursement may not fully cover the value of higher-priced products. 

• Sellers should regularly review inventory valuations and reimbursement reports to understand their potential exposure. 

• Additional insurance may be worth considering, especially for inventory that exceeds Amazon's reimbursement limits.  

Amazon recommends that sellers evaluate third-party insurance options for high-value inventory that may not be fully covered under the MCF reimbursement policy. 

Related Reading: How To Check for Unclaimed Amazon Reimbursements 

How Sellers Can Adapt to Amazon Reimbursement Policy Changes 

Adjust Your Processes to Meet New Claim Deadlines 

Sellers should review their internal processes to ensure lost inventory, damaged inventory, and fulfillment-related issues are identified quickly. Regular audits of reimbursement reports can help prevent eligible claims from expiring before action is taken. 

Automate Inventory and Reimbursement Tracking 

Manual monitoring can make it difficult to catch every reimbursement opportunity, especially for sellers managing large catalogs or high order volumes. Automation reduces administrative effort and helps sellers respond more quickly when issues arise. 

Evaluate Additional Protection for High-Value Inventory 

Amazon's reimbursement policies may not always cover the full financial impact of lost or damaged inventory, particularly higher-value products. Sellers may evaluate whether supplemental insurance or other risk-management strategies make sense for their product mix.  

Stay Current on Amazon Policy Updates 

Amazon reimbursement policies continue to evolve, and changes can affect claim eligibility, reimbursement calculations, and filing requirements. Staying current with policy updates can help businesses adapt their processes before changes affect their ability to recover funds. 

Understand How Returnless Resolutions Affect Reimbursements 

Amazon's returnless resolutions program allows customers to receive refunds for certain low-cost or nonreturnable items without the customer sending the product back. While this can reduce return processing costs, it also changes how sellers recover value from refunded orders.  

Key considerations for returnless resolutions include: 

• No inventory recovery: Products refunded through returnless resolutions are not returned to inventory, eliminating the opportunity to resell or inspect the item.  

• Potential profit loss: Sellers absorb the cost of both the refunded order and the product itself, which can reduce profitability across high-volume item categories.  

• Claim management remains important: Sellers may still be eligible to file claims for inventory that is lost or damaged while in Amazon's possession and should continue monitoring reimbursement reports.  

• Damaged goods policies may still apply: If Amazon loses or damages inventory before a returnless refund occurs, reimbursement eligibility may fall under Amazon's standard damaged or lost inventory policies.  

• Additional operational oversight is required: Returnless resolutions can add complexity to inventory and reimbursement tracking, making regular audits and automated monitoring increasingly valuable. 

Tips for Enhancing Reimbursement Success 

1. Monitor and Audit Your Inventory Regularly 

Regularly check your FBA reports for discrepancies using Amazon Seller Central. It’s best to stay proactive with manual claims to avoid missing new, shorter deadlines. 

2. Leverage Experts 

Partnering with expert reimbursement tools like SPS Revenue Recovery for 3P Sellers can help you automate claims, identify missed reimbursements, and recover funds efficiently. 

3. Maximize Value from Returned Inventory 

• Amazon grade and resell: Resell returned items to recover revenue and reduce losses. 

• Returnless resolutions: For low-cost items, offer refunds without requiring returns to save on logistics. 

• Customer return analytics and insights: Use Amazon’s AI-powered tool to identify trends in returns and minimize future issues. 

Frequently Asked Questions About Amazon Reimbursements 

What is Amazon's new reimbursement policy? 

Amazon's reimbursement policy now includes slimmer claim filing windows, expanded automated reimbursements, marketplace-specific reimbursement caps for certain MCF orders, and a sourcing-based reimbursement model that uses manufacturing costs rather than selling prices. 

Does Amazon automatically reimburse lost inventory? 

Amazon automatically reimburses some lost and damaged FBA inventory claims, but not all claim types qualify. Sellers should continue monitoring reimbursement reports and filing manual claims for issues that fall outside Amazon's automated process. 

How long do sellers have to file Amazon reimbursement claims? 

Most manual reimbursement claims in the United States and United Kingdom must now be filed within 60 days. Sellers should review Amazon's current claim requirements regularly to avoid missing filing deadlines. 

Don't Let Missed Amazon Reimbursements Erode Margins 

Amazon's reimbursement policies continue to evolve, and shorter claim windows leave sellers with less time to identify discrepancies and recover eligible funds. For brands managing large catalogs, high order volumes, or complex fulfillment operations, missed reimbursements can become a source of margin leakage. 

For example, Chosen Foods partnered with SPS Commerce to gain greater visibility into its Amazon reimbursement activity and uncover recovery opportunities that might otherwise have gone unnoticed. The result was Chosen Foods recovered hundreds of thousands of dollars in revenue. 

Whether you're tracking lost inventory, validating reimbursement amounts, or navigating Amazon's latest policy changes, a disciplined reimbursement strategy can help protect revenue and reduce administrative burden. 

Learn more about how SPS Revenue Recovery for Amazon 3P Sellers helps brands identify missed reimbursements, recover eligible funds, and stay ahead of changing Amazon reimbursement requirements.