Quick answer: For eligible FBA inventory lost or damaged in Amazon's fulfillment network, reimbursement is generally based on the product's sourcing or manufacturing cost, not expected retail profit. Dispute windows commonly run 60 days from the transaction. Reconcile inventory and reimbursement reports weekly, preserve invoices, and never assume an automatic reimbursement is correct.
A seller sent 420 units of a kitchen accessory to FBA. Amazon received most of the shipment, then the remaining units spent weeks moving between discrepancy, investigation, and closed status. A reimbursement eventually appeared, less than half the amount expected. The mistake was checking the sales value when Amazon was looking at sourcing cost, then assuming the reimbursement would stay open for months while documents got collected. By the time the paperwork was ready, the dispute window was almost gone.
What changed in the reimbursement model
From March 31, 2025, Amazon moved eligible FBA lost and damaged inventory reimbursement toward product sourcing cost. For a manufacturer, that's generally the cost to manufacture the unit. For a reseller or wholesaler, it's generally the cost paid to source it. The reimbursement isn't designed to replace expected retail profit, advertising already spent, future Buy Box opportunity, or storage cost already incurred. That's why a seller can lose a unit that sells for $60 and receive a much smaller amount. The correct question isn't "what would I have sold it for?" It's "what documented sourcing cost does Amazon associate with this unit, and is the reimbursement consistent with that cost and policy?"
The four numbers sellers must keep separate
| Number | Meaning | Why it's different |
|---|---|---|
| Selling price | Customer price before or after discounts | Includes margin and may change daily |
| Landed product cost | Purchase or manufacturing cost plus inbound expenses | Useful internally, not always Amazon's reimbursable cost definition |
| Sourcing cost | Cost Amazon uses or accepts for reimbursement calculation | Policy-specific and may exclude some expenses |
| Reimbursement amount | Amount credited for the eligible event | Can reflect policy adjustments, condition, recovery, or later reversal |
A seller's internal cost model may be more complete than Amazon's sourcing-cost field. Keep both, don't rewrite your accounting system to match the reimbursement portal.
Which FBA events can create reimbursement activity
The Inventory Defect and Reimbursement portal covers items lost in a fulfillment center, damaged in a fulfillment center, missing from inbound shipments after reconciliation conditions are met, lost or damaged during removal activity, and certain customer-return discrepancies. Eligibility, evidence, and timing differ by event, so a warehouse-loss workflow shouldn't be copied blindly into an inbound-shipment case.
Automatic reimbursement is not the end of the investigation
Amazon automatically identifies and reimburses many events, which saves time but creates a dangerous habit: sellers stop reconciling once a credit appears. A reimbursement can be correct, based on an estimated sourcing cost, lower than an approved cost, later reversed because inventory was found, or applied to the wrong quantity. Treat reimbursement as a ledger process, not a notification.
The weekly reimbursement reconciliation
A practical workflow uses four records: the Inventory Ledger or equivalent event report, shipment reconciliation and inbound details, the Reimbursements report or IDR portal transactions, and the Payments transaction view, covered in more depth in the Amazon Seller Central reports guide. For each suspicious unit movement, record SKU/FNSKU, ASIN, event type, event date, quantity, expected sourcing cost, expected base value, reimbursement ID, actual reimbursement, deadline, and status. The purpose isn't another permanent spreadsheet. It's ensuring no event disappears between reports while the deadline runs.
How to prepare sourcing-cost evidence
For a wholesaler or reseller, preserve the supplier invoice, supplier identity, invoice date, product description matching the SKU, quantity, unit price, and currency. For a manufacturer, preserve a defensible cost build-up: raw materials, direct labor, packaging directly associated with the unit, and supplier invoices for components. Don't submit an unexplained spreadsheet with a number typed into a cell and expect it to outweigh formal records.
Seller discussions repeatedly show invoices rejected even when sellers believe the document is clear. Common problems include low-resolution scans, cropped supplier details, a product description that doesn't match the ASIN, mixed products without a clear line reference, and screenshots instead of original PDFs. Submit the clean original and explain the matching line in the case text without altering the invoice itself.
A worked reimbursement example
A seller sources 300 units at $8.40 each. Fifty units are confirmed lost in the fulfillment center. Documented sourcing cost is 50 times $8.40, or $420.00. The product sells for $24.99, but the expected retail revenue of $1,249.50 isn't the reimbursement basis. Suppose Amazon reimburses $310.00 instead. The seller should check whether Amazon used an estimated sourcing cost of $6.20, whether the accepted sourcing cost is current for that SKU, whether all 50 units were eligible and in sellable condition, and whether part of the reimbursement posted separately. A good claim states the arithmetic plainly and attaches the source evidence.
Claim windows are an operating risk
Current seller guidance and 2026 forum responses repeatedly reference a 60-day window for disputing a reimbursement transaction or seeking re-evaluation of an amount. Don't generalize that number to every event without checking the relevant help page, use it as an operational warning: monthly reconciliation is already too slow. A weekly routine gives the team time to find the event, gather documents, submit the correct claim type, and appeal before the window closes. Put deadlines in a calendar, not in someone's memory.
The missing inbound inventory workflow
Confirm shipment eligibility for investigation before filing repeatedly. Compare shipped, carrier, and received quantities using the shipment plan, box content information, carrier tracking, and proof of delivery. Reconcile by FNSKU, not only total units, since a shipment can have the correct total count and the wrong SKU distribution. Check whether units moved into another status, since "not available" doesn't always mean lost, covered further in Amazon reserved inventory explained. Then file one clean claim stating expected quantity, received quantity, the difference, and the exact reimbursement requested.
Reimbursement reversals are not always theft
Amazon may reimburse inventory and later find the unit, then remove the credit while the unit returns to inventory. Check both sides: was the reimbursement reversed, and did the unit reappear as sellable or unsellable inventory? A reversal without restored inventory may need investigation. A reversal with a recovered unit can be correct.
How to write a reimbursement dispute
State the reimbursement ID, the units and FNSKU covered, the event date, the transaction amount and per-unit rate, the approved sourcing cost with supporting invoice line, the expected reimbursement before adjustment, and a specific request to review the unit cost applied. The tone should be calm, the request specific, and the evidence mapped directly to the claim.
A human rule for large catalogs
Reconcile by value, not only quantity. One missing $180 unit deserves faster attention than twelve missing $2 units. A simple risk score is unresolved quantity times sourcing cost times a deadline-urgency factor, weighted higher as fewer days remain. This is an internal prioritization method, not an Amazon formula.
EcomSanity is not a reimbursement recovery service. Its value is indirect: sales velocity, inventory status, and category performance help a seller recognize when the operational picture no longer makes sense, an ASIN approaching stockout after an inbound discrepancy, or return volume rising while sellable inventory doesn't return as expected. The reimbursement claim belongs in Amazon's portal. The early warning belongs in the operating console. For tracing exactly what happened to a specific unit over time, see the Amazon Inventory Ledger report, and for missing units still inside an unreconciled shipment, see Amazon FBA shipment reconciliation.
Frequently asked questions
Does Amazon reimburse the full selling price for lost FBA inventory?
No. The current FBA lost and damaged policy is generally based on manufacturing or sourcing cost for eligible units, not the expected selling price or profit. A unit that sells for $60 can be reimbursed for a much smaller sourcing-cost amount.
How long do I have to dispute an Amazon reimbursement?
The exact period depends on the event and policy, but current guidance commonly references 60 days for disputing a reimbursement transaction or seeking re-evaluation of the amount. Verify the deadline shown for the specific case rather than assuming one universal number.
What if Amazon finds the missing unit after reimbursing me?
The reimbursement may be reversed and the unit restored to inventory. Match every reversal against the original inventory event to confirm whether it's a correct reversal or a discrepancy worth investigating.