Posting because I wanted to ask something regarding the new reimbursement policy. Very unfair. We’ve been losing a lot because of it.
They are reimbursing random low amounts that don’t even cover what we actually paid. For example (Find the Screenshots attached):
We paid $37.79 for one unit, and Amazon gave us back only $10.95.
We lost 3 units that cost $17.99 each (total $54), and they reimbursed just $35.37.
We tried updating the sourcing cost, but Amazon rejected it.
Some quick questions:
Has anyone figured out how to get full reimbursement or found a way to make Amazon accept real COGs? I submitted invoices from the Authorized Distributor but they denied. Probably because I was adding the ( Prep Cost as well ).
Is there any way to recover prep and shipping costs too?
Please share if you know anything. I really want to learn from others who’ve dealt with this. What’s the best way to submit invoices so Amazon accepts the real COGs? And if you know someone who can help, please tag them here. I will really appreciate it.
Yes, this is a super messed-up policy, as for many items the prices according to Amazon are far lower than the manufacturer’s cost. The process of appealing is also not very helpful, as they reject almost all appeals even when submitted through the portal specifically made for this purpose. Overall, it’s just another way for Amazon to make money off sellers.
Amazon now typically calculates reimbursements based on an internal fair market value, which often ignores your submitted COGs and invoices unless there’s a strong historical sales record supporting a higher valuation.
To improve your chances of full reimbursement, make sure the ASIN has a consistent sales history at or near your price point; pricing history (including Buy Box and average sale price) influences Amazon’s valuation more than your invoices. When submitting invoices, avoid bundling in prep or shipping costs—they’re typically excluded, and doing so can make Amazon view the invoice as inflated.
Instead, submit clean invoices from an authorized distributor that clearly show the product name, unit cost, your business info, and the supplier’s full contact details. For prep and shipping costs, unfortunately, Amazon doesn’t reimburse those unless the product was damaged in FBA due to their handling and you can make a strong case via separate reimbursement claims.
Thanks for the advice. I watched a video in Seller Central and read the policy as well, where they mentioned shipping and other costs are excluded. So I was wondering if anyone has found a way to go around it?
Or should we just take the hit? Is there really nothing we can do about it?
They do, but there is no rule of thumb. My cost got approved last night for one product. The invoice showed $17.49, and after the supplier discount, it cost us $15, but Amazon accepted $17.49, even though their estimate was $11.69. I’m also going to get my prep cost back for this item.
