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Hey there! Fred McKinnon here from eComCatalyst. Remember the buzz back in December? Amazon dropped a new announcement about their reimbursement policy, and it definitely got our attention. It felt like every announcement that Amazon had been making was just making things harder on sellers. While they bragged about not raising seller fees in 2025, the new policy changes regarding reimbursements for lost, stolen, or damaged goods felt like a punch in the gut.

But don’t worry, I’m here to break it all down. The deadline to take action has been extended to March 31st, so we have a little time. But it’s crucial you understand the economic impact and how to check Amazon’s estimated value of your products. If you disagree with their assessment, you can appeal! Let’s jump in.

https://www.youtube.com/watch?v=_1Ior_xcB8s

The Great Reimbursement Flip-Flop

Let’s rewind a bit. I actually made a video about this a few months ago. You can check it out here: “Amazon’s Shocking New FBA Inventory Reimbursement Policy | Sellers Are NOT HAPPY.”

Before, if Amazon lost or damaged your stuff (which, let’s be honest, happens constantly), they’d reimburse you based on the selling price, minus their fees. Sometimes, you’d even get more back than if you’d actually sold the product! Why? Well, it didn’t account for PPC costs.

But then, things changed. Amazon decided that, starting March 10th (now March 31st), they’d only reimburse you for the sourcing cost. This caused quite a stir in the seller community!

Sellers were upset for a few reasons:

• Nobody wants to reveal their sourcing costs to Amazon.
• Amazon’s idea of “sourcing cost” didn’t include important expenses. Think inbound freight, tariffs, and duties – the real cost of getting your product to Amazon’s warehouse.
• It felt like we were being penalized for Amazon’s mistakes!

Finding Amazon’s Estimated Cost: A Treasure Hunt in Seller Central

Okay, so how do you find out what Amazon thinks your products are worth? Here’s the step-by-step:

1. Head to your Amazon Seller Central account.
2. Go to the “Manage Inventory” section, then “Manage FBA Inventory.”
3. Look for the “Inventory” tab. Underneath there you should see “Inventory Defect and Reimbursement.” Click it!
4. You should see a “Manage Sourcing Cost” button in the top right corner. Click that too!

Now, you have two choices:

• You can view Amazon’s estimated sourcing costs right on the page.
• Or, you can download a spreadsheet for a more detailed look. I recommend the spreadsheet!

Decoding the Spreadsheet: What Does It All Mean?

Let’s break down what you’ll see in that spreadsheet:

• Amazon Estimated Cost: This is Amazon’s initial guess at how much it cost you to source your product.
• Latest Approved Cost: This is the final sourcing cost after any changes you’ve made and Amazon has approved.
• Source of the Latest Approved Cost: This tells you where the cost data came from – either Amazon or you, the seller.
• Currency: Pretty straightforward – the currency the costs are listed in.
• Date: The date the cost information was last updated.
• Seller New Cost: This is the magic column! If you disagree with Amazon’s estimate, this is where you enter your cost.

Remember, Amazon will reimburse you based on the “Amazon Estimated Cost” unless you provide a different “Seller New Cost” that they approve.

Sellerboard to the Rescue: Tracking Your True Costs

It’s super important to compare Amazon’s sourcing cost to your actual costs. How do you keep track of that? I’m a big fan of Sellerboard for tracking your profitability and COGS (Cost of Goods Sold). We’ve got an agency referral link for two free months, check it out.

Sellerboard lets you enter date-specific COGS. Let’s say you import a product. The first time, it costs you $10. But then tariffs go up, and it costs $11.50. With Sellerboard, you can say, “The cost was $10 until this date, then it changed to $11.50.” This keeps your profitability calculations accurate.

Here’s a surprising thing: When I checked my Sellerboard data against Amazon’s estimates, Amazon’s numbers were higher than my actual costs! I have no idea where they got those numbers.

Time to Take Action: Appealing and Adjusting

So, what should you do? Here’s what I’m thinking of doing:

I might bump up my “Seller New Cost” by 10-15%. Why? Because Amazon’s estimate doesn’t include things like inbound shipping costs.

A word of warning: Be prepared to back up your claims with documentation!

To recap, here’s how to update your sourcing costs:

1. Go to Seller Central.
2. Click on FBA Inventory.
3. Find Inventory Defect and Reimbursement.
4. Click Manage Sourcing Cost.
5. Update your costs manually or upload a spreadsheet.

Need More Help?

Don’t forget there are other helpful tools to help you keep track of FBA reimbursements. Check out SellerInvestigators (Amazon FBA Reimbursements Tool and Service) to help you keep track of this.

And of course, if you’re an Amazon seller or brand owner looking to scale your business, check out eComCatalyst. We offer free consultations to audit your account and show you how we can help you grow.

Final Thoughts

Understanding these changes to Amazon FBA Reimbursements is crucial for protecting your profits. Take the time to check Amazon’s estimates, compare them to your own costs, and appeal if necessary.

Thanks for watching! Make sure you subscribe, like this video, and leave a comment to let me know if this was helpful. We’re here to help you succeed on Amazon!