Since March 31, 2025, Amazon reimburses lost and damaged FBA inventory at your sourcing cost, not your selling price. If your cost isn’t on file, Amazon uses its own estimate, which can be lower than what you paid. To fix a low payout, put your real cost on file with an invoice and dispute the amount within 60 days of the reimbursement.
How does Amazon value a lost or damaged FBA unit?
It depends on whether a customer had ordered the unit.
| Type of loss | How Amazon values it | Paid without a claim? | Claim window (US) |
|---|---|---|---|
| Lost or damaged in a fulfillment center, or while Amazon moves stock between warehouses | Your sourcing cost, or Amazon’s estimate | Usually | 60 days from the day Amazon marks it lost or damaged |
| Inbound shipment received short | Your sourcing cost, or Amazon’s estimate | Never | Day 15 to day 60 after delivery to Amazon |
| Removal order lost in transit | Your sourcing cost, or Amazon’s estimate | Never | Day 15 to day 75 after the removal shipment was created |
| Removal delivered damaged, incomplete or wrong | Your sourcing cost, or Amazon’s estimate | Never | 60 days after delivery back to you |
| Customer refunded, but the item never came back, came back damaged or was the wrong item | Sale price minus fees | Usually | Day 60 to day 120 after the refund |
Source: Amazon Seller Central, “FBA inventory reimbursement policy”; Amazon Seller Forums announcements “Update on Reimbursement Automation and Eligibility Window” (October 23, 2024) and “New effective date for FBA inventory reimbursement policy” (2025). Checked September 2026.
So the sourcing-cost rule covers warehouse, inbound and removal losses. Customer-return claims are different. They’re still paid at the sale price minus fees, and at a discounted value when the returned item was unsellable.
What counts as sourcing cost?
Sourcing cost is what you paid your supplier or manufacturer for the unit. It doesn’t include shipping, handling or customs duties. That’s why a reimbursement can be below your landed cost even when Amazon uses the right number.
Three more rules from the same policy:
- The maximum is $5,000 per unit in the US.
- Multi-Channel Fulfillment losses are capped at $300 per unit.
- Instead of paying, Amazon may replace a lost unit with a new one of the same FNSKU.
The change was first announced for March 10, 2025. Amazon then moved it to March 31, 2025, to give sellers more time to enter their costs.
Source: Amazon Seller Central, “FBA inventory reimbursement policy”, checked September 2026; effective date rechecked October 2026 in the Amazon Seller Forums announcement “New effective date for FBA lost and damaged inventory reimbursement policy”.
Why was your reimbursement below your cost?
There are three common reasons.
- No cost on file. If you never entered your sourcing cost, Amazon estimates it from “comparable products”. A seller reported in July 2026 that a product bought for $21 and sold for $38 was lost in a warehouse and reimbursed at $9.
- Your cost changed. If your supplier raised the price and you didn’t update it, Amazon pays on the old figure.
- The unit was graded unsellable. Units that were already customer-damaged, defective or expired are rarely paid at full value.
Automatic reimbursements use the same valuation. A payout that arrived on its own can still be too low.
How to enter your cost in Manage Your Sourcing Cost
- In Seller Central, open Inventory, then Inventory Defect and Reimbursement.
- Choose Manage Your Sourcing Cost.
- Update the cost for each FNSKU.
- Attach the supplier or manufacturer invoice that shows your unit cost.
Do this before the next loss, not after it. Amazon pays future losses on the cost it has on file.
Send clean invoices the first time. If Amazon rejects a submission, you can’t resubmit for 30 days unless you have new evidence. A seller reported in July 2026 that a cost uploaded on this page was rejected automatically, so check that the invoice clearly shows the supplier, the product, the quantity and the unit price before you send it.
Source: Amazon Seller Central, “FBA inventory reimbursement policy”, checked September 2026.
How to dispute a low payout
You have 60 days from the payout date to dispute the amount.
- Find the payout in your Reimbursements report. Note the FNSKU, the date and the amount per unit.
- Compare it with your invoice. Use the unit price only. Leave out freight, duties and prep.
- Put your cost on file in Manage Your Sourcing Cost, with the invoice.
- Open a Seller Central case disputing the reimbursement amount, and attach the same invoice.
- Track the 60 days. After that, the amount stands.
Research each dispute before you send it. Amazon’s policy prohibits “submitting insufficiently researched or premature requests, or submitting a large number of requests in a short time”, and repeat senders can face account action.
What happens when Amazon finds the unit later?
Amazon can take a reimbursement back if the lost unit is found. The reversal shows in your Reimbursements report.
Check each one. Every reversal should match a found unit in your Inventory Ledger around the same date. A reversal with no found unit means Amazon took the money back and you don’t have the product either. Raise it with Seller Support and include both report lines.
What is automatic, and what must you claim?
- Usually automatic: units lost or damaged in a fulfillment center (since November 2024), and many customer-return cases.
- Never automatic: removal orders that are lost or arrive damaged or short, inbound shipments received short, and FBA fees charged on the wrong size or weight.
- Always your job: checking that the amount paid matches your cost, and disputing it when it doesn’t.
Our Amazon FBA reimbursements page covers each claim type, and the claim windows page has every deadline.
Common mistakes
- Waiting for a loss before entering your cost. By then Amazon has already paid on its estimate.
- Submitting landed cost. Shipping, handling and customs duties aren’t part of sourcing cost.
- Resubmitting the same invoice after a rejection. You’re blocked for 30 days unless you have new evidence.
- Expecting the sale price. Only customer-return claims are valued at the sale price minus fees.
- Missing the 60 days. The dispute window runs from the payout date.
USA vs Canada
The same claim types apply on Amazon.ca. The maximum is CAD 5,000 per unit, and Multi-Channel Fulfillment losses are capped at CAD 400. Customer-return claims on Amazon.ca open on day 45 after the refund and close on day 105. Check the reimbursement policy in Seller Central Canada for the current valuation wording. Source: Amazon.ca “FBA inventory reimbursement policy”, checked September 2026.
Frequently asked questions
Does Amazon reimburse lost inventory at the selling price?
No. Since March 31, 2025, units lost or damaged before a customer ordered them are paid at your sourcing cost. Customer-return claims are paid at the sale price minus fees.
How long do I have to dispute an Amazon reimbursement amount?
60 days from the date of the reimbursement.
What if I never entered a sourcing cost?
Amazon uses its own estimate. Enter your cost in Manage Your Sourcing Cost with an invoice, then dispute any payout from the last 60 days that’s below it.
Does sourcing cost include shipping and duties?
No. It’s what you paid the supplier for the unit, without shipping, handling or customs duties.
Can Amazon take a reimbursement back?
Yes, if the unit is found later. Match each reversal to a found unit in your Inventory Ledger.
How RetailerBox helps
Our team checks every payout in your Reimbursements report against your invoices, prepares the cost evidence and disputes each low payout inside its 60 days. Claims we file before January 1, 2027 are free. After that the fee is 10% of what Amazon actually pays on claims our team files, with no setup, platform or minimum fees, and no fee on reimbursements Amazon pays on its own. Nothing recovered, nothing owed. Start with a free 6-month reimbursement audit: a written summary within 48 to 72 hours, through user-permission access, never a password.