Amazon’s Reimbursement Policy: An Unfair Burden on Sellers
As many sellers are aware, Amazon has recently introduced a new reimbursement policy that drastically undercuts the actual sourcing cost of lost inventory. Despite Amazon acknowledging the loss of a seller’s products within their warehouses, they frequently reimburse only a fraction of the real value - often as low as one-third or one-half of the actual amount. Even when sellers provide valid invoices to substantiate the actual cost, Amazon routinely denies these claims.
For many of us, especially those who purchase directly from the brand, our sourcing costs are well below what most sellers can obtain elsewhere. This scenario applies to countless sellers across the platform. Nonetheless, Amazon continues to reject legitimate invoices and refuses to issue proper reimbursement.
Let’s be clear: Amazon, you lost our goods - and you admit it. We’re not even asking for compensation for the labor, shipping, prep, or opportunity costs we’ve incurred. We’re simply requesting that you reimburse us for what we actually paid for the products. How can you justify denying reimbursement for these documented costs? It’s truly outrageous, and the voices speaking out against this unfair practice are not nearly loud enough. Amazon is literally benefitting to the tune of many millions of dollars by taking from their own sellers. Not only that, but the ridiculous reimbursement amounts can potentially incentivize the ccompany to "lose" inventory. If Amazon chooses to deny reimbursement for costs clearly documented on our invoices - which are already below our true costs - the burden of proof should be on Amazon, not the sellers. We didn’t lose the inventory - you did.
@Seller_nUXRIxpv1gT6F
Amazon’s Reimbursement Policy: An Unfair Burden on Sellers
As many sellers are aware, Amazon has recently introduced a new reimbursement policy that drastically undercuts the actual sourcing cost of lost inventory. Despite Amazon acknowledging the loss of a seller’s products within their warehouses, they frequently reimburse only a fraction of the real value - often as low as one-third or one-half of the actual amount. Even when sellers provide valid invoices to substantiate the actual cost, Amazon routinely denies these claims.
For many of us, especially those who purchase directly from the brand, our sourcing costs are well below what most sellers can obtain elsewhere. This scenario applies to countless sellers across the platform. Nonetheless, Amazon continues to reject legitimate invoices and refuses to issue proper reimbursement.
Let’s be clear: Amazon, you lost our goods - and you admit it. We’re not even asking for compensation for the labor, shipping, prep, or opportunity costs we’ve incurred. We’re simply requesting that you reimburse us for what we actually paid for the products. How can you justify denying reimbursement for these documented costs? It’s truly outrageous, and the voices speaking out against this unfair practice are not nearly loud enough. Amazon is literally benefitting to the tune of many millions of dollars by taking from their own sellers. Not only that, but the ridiculous reimbursement amounts can potentially incentivize the ccompany to "lose" inventory. If Amazon chooses to deny reimbursement for costs clearly documented on our invoices - which are already below our true costs - the burden of proof should be on Amazon, not the sellers. We didn’t lose the inventory - you did.
@Seller_nUXRIxpv1gT6F
10 Antworten
Seller_4zBzdtgCyS9EI
The best part is, once they reimburse you pennies on the dollar, they can "find" your inventory again and sell it them self :-)
Seller_4zBzdtgCyS9EI
Yes, but what's the incentive? People keep sending inventory, Amazon keeps getting fatter. For every bankrupt seller, there are 2 new fools (present company excluded) thinking they'll get rich here....
Seller_EAcOeUZIzXVtW
I completely agree with your statement, and I appreciate you articulating what so many sellers on the platform are experiencing. The current state of Amazon’s reimbursement policy is not only deeply flawed but also fundamentally unfair to the third-party sellers who help drive the platform’s success.
When Amazon loses a seller’s inventory—whether in its fulfillment centers or in transit—it is only reasonable to expect full and fair reimbursement based on verified sourcing costs. Yet, despite providing valid invoices and documentation, many of us are receiving reimbursements that barely reflect a fraction of the true cost of goods. In some cases, this practice borders on punitive.
What’s most troubling is that Amazon acknowledges the loss of inventory, but then proceeds to undercut the compensation due to sellers, regardless of the proof provided. This is particularly damaging for those of us who source directly from brands or manufacturers at negotiated rates. We’re being penalized simply because our costs don’t align with arbitrary reimbursement formulas.
Sellers are not asking for inflated reimbursements or compensation for associated labor, time, or opportunity cost—we are simply asking Amazon to stand behind its responsibilities and honor documented claims. Anything less undermines trust and puts sellers in an unsustainable position, especially smaller businesses that operate on tight margins.
Amazon’s refusal to honor valid reimbursement claims, while profiting from lost or misplaced inventory, is not just unacceptable—it’s a clear conflict of interest. As you rightly pointed out, it raises legitimate concerns about the incentives involved in these systemic “losses.”
It’s time Amazon re-evaluated this policy with transparency, fairness, and respect for the sellers that have built and continue to support its ecosystem. Until then, sellers must continue to raise their voices and demand the accountability we deserve.
Seller_WXXA6Jh1fGpz7
We encountered the same issue.
Amazon lost two of our units, each valued at $255.50.
They reimbursed us only $137.16 per unit.
We submitted the original invoice from our official supplier, which contains all valid and required information. Despite this, our Re-Evaluation Reimbursement Request continues to be denied.
It’s extremely frustrating. It feels like Amazon is neglecting its sellers, and the overseas support team has been unhelpful. The situation seems to be getting worse each month.
Seller_U7T5tbttC89D0
Thank you for speaking out about these egregious and appalling Amazon practices. We sell high value inventory and are losing tens of thousands of dollars because they will not reimburse an adequate amount for the inventory they lost.
Has anyone found a solution? Any suggestions of how we handle this?
