seller
- What changed
- Compensation for FBA units lost, damaged or not returned
- When
- Manufacturing cost valuation since March 2025; shorter windows since late 2024
- Who it affects
- Every seller using Fulfillment by Amazon
- What to do
- Set accurate manufacturing costs and review reimbursement reports monthly
Key takeaways
- Since March 2025, units lost before an order are reimbursed at your manufacturing cost.
- Many warehouse losses are reimbursed automatically, but inbound and return gaps still need checks.
- Claim windows are now short, so review reports monthly.
FBA reimbursement claim types
| What happened | How valued | Key evidence | |
|---|---|---|---|
| Shipment to Amazon | Short or damaged inbound | Manufacturing cost | Proof of delivery, invoices |
| Fulfillment center | Lost or damaged in storage | Manufacturing cost | Ledger entries |
| Customer return | Refunded, not returned | Order price minus fees | Order ID |
| Removal | Lost or damaged in transit | Manufacturing cost | Tracking, photos, LPNs |
What is FBA reimbursement?
When you send inventory to Amazon, Amazon becomes responsible for it while it sits in the fulfillment network. Amazon's reimbursement policy covers FBA items lost or damaged at an Amazon facility or by a carrier working for Amazon. It either replaces the units with the same FNSKU or pays you.
Reimbursements also cover some customer return problems, such as a customer who was refunded but never sent the item back, or a returned item that Amazon damaged after receiving it.
The four types of FBA reimbursement claims
Amazon's policy groups claims by where the problem happened. Each type has its own evidence requirements and time limit.
- Shipments to Amazon: units you sent that were not received or arrived damaged
- Fulfillment center operations: units lost or damaged in storage or handling
- Customer returns: refunded returns that did not come back or came back damaged by Amazon
- Removals: units lost or damaged while being shipped back to you
How Amazon values reimbursed units in 2026
Valuation changed in 2025. Amazon announced that from March 10, 2025 it reimburses items lost or damaged before a customer order based on the product's manufacturing cost. Amazon defines this as your cost to source or produce the product, excluding shipping, handling, customs duties and other costs. If you do not enter your own costs, Amazon applies an estimate based on comparable products, which you can change.
Items lost or damaged after a customer has ordered are still reimbursed at the sale price on the original order minus applicable fees. Because most warehouse losses happen before an order, entering accurate manufacturing costs in the Inventory Defect and Reimbursement portal is the single most valuable setup task.
How reimbursement rules changed
Most claim windows shortened
Automatic reimbursement for many FC losses
Pre-order losses valued at manufacturing cost
Unprepped units lose reimbursement eligibility
What Amazon reimburses automatically
Amazon reimburses many units lost in fulfillment centers automatically, without a claim. That has reduced manual work, but it has not removed it. Automated processes do not reliably catch every inbound receiving shortfall, every return that was refunded but never restocked, or every unit graded incorrectly. Checking the reports is still worth the time.
FBA reimbursement deadlines
Claim windows are much shorter than they were. In late 2024 Amazon reduced the time to file for most claim types, and seller guides now cite about 60 days for many fulfillment center loss claims, down from the 18 months sellers were used to. Inbound shipment, customer return and removal claims each have their own windows, measured from different dates.
Because the windows change and differ by marketplace, check the current FBA inventory reimbursement policy page in Seller Central before you rely on any number. The practical rule is simple: review reports every month, not every year.
What is not eligible for reimbursement
Some situations are excluded by policy, and filing them only slows your other cases.
- Units not matching your shipping plan, or cancelled shipments
- Units disposed of at your request
- Items damaged by the customer or returned as defective
- Refunds you issued directly to a customer
- Sellable returns that went back into your inventory
- Units that arrived without required prep or labels after January 1, 2026
How to check what you are owed
Start with Amazon's reports. Compare units shipped with units received for each recent shipment, review the Inventory Ledger for adjustments that show losses or damage, and check the Reimbursements report to see what has already been paid. For returns, match refunds against the FBA customer returns report; our Amazon LPN number guide explains how to trace individual returned units.
When you find a gap, our step-by-step guide to filing an Amazon reimbursement claim covers the evidence and wording that get cases approved.
Monthly reimbursement review
- Shipped vs received per shipment
- Inventory Ledger losses
- Reimbursements already paid
- Refunds without returns
- Return grading errors
- Manufacturing costs up to date
How to reduce lost and damaged inventory
The best reimbursement is the one you never need. Correct prep and labeling, accurate box contents and clear packing lists reduce receiving errors, and they keep your units eligible for reimbursement when something does go wrong. Our Amazon packaging requirements guide covers the rules.
PPC Spider's FBA inventory and reimbursements service reviews shipments, the Inventory Ledger and returns every month and files claims inside the deadlines, alongside the ads and inventory work SpiderOS monitors. You can see what may be owed with a free Amazon audit.
Sources
- Amazon Seller Forums: Update to the FBA lost and damaged inventory reimbursement policy (sellercentral-europe.amazon.com/seller-forums/discussions/t/a941ac02-d389-409a-9d62-00ab9db5bc4a)
- Hopted: FBA inventory reimbursement policy help article (hopted.com/integrations/amazon-sp-api/amazon-help-articles/fba-inventory-reimbursement-policy)
- SellerLogic: Amazon FBA inventory reimbursement guidelines (sellerlogic.com/en/blog/amazon-fba-inventory-reimbursement/)
- Packaging Insights: Amazon ends US prep and labeling services in 2026 (packaginginsights.com/news/amazon-fba-packaging-labeling-changes-2026.html)
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