The Amazon FBA reimbursement policy plays a critical role in protecting your bottom line as a seller. If items are lost or damaged under Amazon’s control (whether in fulfillment centers, during shipment, or through mishandled returns), you may be eligible for compensation. Yet, the rules are complex, the timelines are strict, and reimbursement reversals (“clawbacks”) are increasingly common.
In this article, we’ll break down everything sellers need to know about the reimbursement process, recent changes Amazon has introduced, and actionable strategies to maximize recoveries while minimizing risk. By the end, you’ll understand how to stay compliant, file strong claims, and avoid leaving money on the table.
The reimbursement policy ensures sellers are compensated when Amazon is at fault for lost or damaged inventory. To qualify, items must be registered in FBA, comply with product restrictions, and match shipping plans. Your account must also be in good standing when filing claims.
If approved, Amazon will either replace the item or reimburse you. However, reimbursements are not guaranteed. Submitting premature, incomplete, or excessive requests can delay support or trigger account monitoring. The maximum reimbursement per unit is $5,000, making third-party insurance advisable for high-value products.
Amazon’s reimbursement system covers multiple scenarios:
External Reference: Amazon Seller Central – Reimbursement Policy
Reimbursement amounts depend on when and how the loss occurred.
⚠️ Since March 31, 2025, Amazon will fully switch to a manufacturing cost-based model, sparking seller concerns about reduced coverage for operational costs like shipping, labeling, and packaging.
Filing depends on where the issue occurred, but the process typically follows these steps:
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Amazon has tightened its reimbursement policy with major updates:
These changes require sellers to adapt their processes quickly or risk forfeiting eligible funds.
Reimbursement reversals, also known as “clawbacks,” occur when Amazon reverses a payment it previously issued, typically because inventory is later recovered, a customer returns an item, or an error is discovered in the original reimbursement. While Amazon sees this as correcting its books, for sellers, it can cause sudden financial gaps.
To stay ahead of clawbacks, review your Reimbursements Report regularly, especially the “Reason” column, which shows why funds were reclaimed. If you think a reversal was made in error, you can dispute it within 60 days by providing invoices, shipping records, or other proof. Keeping detailed documentation and auditing your account monthly reduces the risk of surprises and gives you leverage if you need to contest Amazon’s decision.
External Reference: Missed Amazon Reimbursements: How to Avoid Losing Money on Expired Cases
To safeguard your profits, sellers should:
Related: Amazon Seller Account Troubleshooting: My Listing Is Not Showing Up
External References: Amazon Seller Central – Reimbursement Policy
The Amazon FBA reimbursement policy is designed to protect sellers when Amazon is at fault, but the system isn’t perfect. With stricter timelines, new cost-based models, and clawbacks becoming more common, sellers must adopt proactive strategies to ensure they don’t lose revenue unnecessarily.
By auditing regularly, documenting thoroughly, and leveraging automation tools, you can safeguard your profitability and focus on growing your Amazon business with confidence.
Need help recovering lost reimbursements? Contact Carbon6 today, the specialize in securing reimbursements and protecting your bottom line.
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