@michaelpatron0 Did these items never show up in your stranded inventory? And have you photo’s what you’re receiving including the FNSKU which should prove these aren’t your units?
@Timothy44711198@YourAnonNews Which part of poll taxes are unconstitutional are hard for some of us to grasp. Make all of those documents free, and you get over that hurdle. Get them to people in nursing homes and homeless people, your home free. Unless we’re admitting this is really just voter suppression ✌️
By: A Concerned Amazon Seller
To @amazon Leadership and the Public:
Over the last year, Amazon has quietly but drastically changed its Fulfillment by Amazon (FBA) reimbursement policy — and these changes are putting small businesses in jeopardy. This letter is a call to action, an urgent request to reconsider these policies before countless sellers are driven out of business.
What Has Changed?
Until recently, when Amazon lost or damaged inventory in its fulfillment centers, reimbursements were calculated based on the item’s fair market value, which was typically close to its retail sale price minus Amazon’s fees. In other words, sellers were reimbursed a fair amount that reflected the value of their product in the market.
Now, Amazon has changed this reimbursement model. As of March 2025, reimbursements will no longer be based on the retail value of the lost or damaged items. Instead, Amazon will reimburse based on its own “estimated sourcing cost” — often a fraction of what the product actually costs to manufacture or source.
While Amazon claims this is in line with industry standards, this change puts a massive strain on small businesses. A seller might have paid $50 to produce an item, but Amazon will now reimburse as little as $10. The difference? A loss that sellers can’t afford.
The Real-World Impact
Here are just a few examples of how this new policy has played out for real sellers:
- One seller reported being reimbursed only $0.53 for an item that cost over $20 to produce.
— Another had their reimbursement claim for an item valued at $35 rejected and received only $5.85.
— For collectibles, Amazon is reimbursing only the original manufacturing cost — even if the market value is much higher. One seller’s rare trading card worth $270,000 could be lost and reimbursed only $4.
These aren’t isolated cases. Sellers across the platform are facing reimbursements that are 40–80% lower than the actual cost of their inventory. This shift from market value-based reimbursements to cost-based reimbursements leaves sellers to shoulder the financial burden for Amazon’s errors.
The Broken System: Reimbursement Denials & No Appeals
But it doesn’t stop with unfair reimbursements. The system that Amazon has set up to allow sellers to submit their real costs is severely broken. Here’s how it works:
1. Automatic Denials: When sellers try to submit their actual sourcing costs, the system often denies the submissions automatically. One seller attempted to enter a $20 cost for an item and had the system reject it with the vague message: “Submitted value falls outside policy guidelines.”
2. Documentation Rejections: Even when sellers upload invoices or proof of cost, Amazon’s system frequently rejects the documents without explanation. In some cases, sellers have submitted the same invoice multiple times, only for it to be rejected for different reasons each time.
3. The 30-Day Lockout: If a seller’s cost submission is rejected, they are locked out of resubmitting for 30 days. This means that even when the seller has corrected the cost data, they must wait an entire month before being allowed to try again, and the reimbursement remains based on the low, incorrect estimate during that period.
4. No Real Appeal Process: If sellers want to dispute the amount reimbursed, the appeals process is practically non-existent. Sellers report that when they file disputes, they are met with automated replies and no real recourse. Some have described the process as a “black hole” where their concerns disappear without resolution.
The Impact on Small Businesses
Small sellers on Amazon are the backbone of the marketplace. We bring the innovation, diversity of products, and customer service that Amazon relies on to maintain its marketplace dominance. But this new reimbursement policy has put us in a no-win situation. When Amazon loses our inventory, we are not made whole. Instead, we absorb the loss.
Many sellers have started pulling their products from Amazon’s FBA network entirely. Some have even turned to alternative fulfillment platforms that offer more predictable, fair treatment. But for many, moving away from FBA is not a feasible option, especially when it involves breaking established partnerships, re-learning logistics, and paying new fees.
Our Demands for Change
We are asking Amazon to fix this policy immediately. Here are the changes we propose:
1. Fairer Compensation for Lost or Damaged Inventory: Reconsider the switch to sourcing cost-based reimbursements. Sellers should be reimbursed based on either the product’s retail value or the actual cost, whichever is higher. If Amazon insists on cost-based reimbursements, those costs must include shipping, customs, and other related fees — not just the raw manufacturing cost.
2. Fix the Sourcing Cost Submission Portal: The system should allow sellers to submit accurate data and accept standard documentation such as invoices, supplier contracts, and cost breakdowns. Sellers should not be locked out for submitting the correct data, and denial messages should be more transparent.
3. Implement a Real Appeals Process: Sellers need a clear, transparent appeals process. If a seller believes they have been under-reimbursed, they should be able to dispute Amazon’s calculations and have those disputes reviewed by a real person, not an automated system.
4. Protect Seller Data: We also urge Amazon to reconsider the data collection that the new policy demands. Sellers are not legally required to submit detailed cost breakdowns in some cases, and sharing this data could violate NDAs or trade agreements. Amazon should allow for alternative methods of proving sourcing cost without violating confidentiality agreements.
Conclusion
Amazon’s new FBA reimbursement policy is putting small businesses at risk. By reimbursing us based on Amazon’s arbitrary cost estimates, rejecting legitimate cost submissions, and offering no meaningful recourse, Amazon has created a system that is unfair, opaque, and financially damaging.
If these changes aren’t reversed or improved, many sellers will leave the platform — or worse, be forced to close their businesses entirely.
We urge Amazon to listen to its sellers and take immediate action to restore fairness. We built Amazon, and Amazon depends on us. It’s time for Amazon to stand by its third-party sellers, or risk losing the partnership that has helped make the company a leader in e-commerce.
Sincerely,
A Collective of Concerned Amazon FBA Sellers
https://t.co/Eg0a5cXRa9
@ShinghiD We certainly need more than 2 parties and our representatives should be beholden to their constituents above all else. I also believe 1 person, one voice. If we don’t overturn Citizens United, we’re walking down a slow path towards plutocracy.
@trackingdonald@MargoMartin47@PressSec Such conservative family values too. Her baby was able to attend his parents wedding as a guest. The hypocrisy is astounding.
@Truth_0002 @WhiteHouse If he were Pope, would we conclude prayers by saying “ In Cheezus name, Ahem”…. Give me a break. The guy is a megalomaniac full stop. Let’s stop dressing a pig up and calling it a man.
@Xisntfeespeech @bennyjohnson Or better yet show how much Amazon charges all of the small businesses who sell on the platform in fees. They keep 40-60% of all sales in referral or FBA fees for all 3P sellers (about 65% of the platform) and they invent new fees at least once per year. I’m all for transparency
@PJeffcock@amznsellerhelp@thainguyeno@AmazonASGTG@amazon Can’t be worse than the ones we’re dealing with that were changed by the internal retail team and they won’t fix even with GS1 certificate. Amazon’s internal teams are the original black hats