Updated: July 2026
Amazon’s FBA refund and reimbursement policy sets out when and how Amazon repays sellers for inventory it loses or damages, and how much it pays. Since 2025, most of those payouts are calculated on a product’s manufacturing cost rather than its selling price, and manual claims must be filed within tight eligibility windows, so knowing the rules is the difference between recovering what Amazon owes and writing it off. This guide explains the current (2026) position for sellers using Fulfillment by Amazon (FBA), with the EU and Irish angle in mind.
How the FBA reimbursement system works now (2026)
Under Fulfillment by Amazon, Amazon stores, picks, packs and ships a seller’s stock and handles customer returns. When Amazon loses or damages that stock, or mishandles a customer return, the seller is entitled to a reimbursement. There are two routes to getting paid.
The first is automatic. Since 1 November 2024, Amazon proactively reimburses FBA items reported lost in its fulfilment centres and issues the reimbursement without the seller filing anything. Almost all warehouse lost and damaged cases, and most customer return cases, are now handled this way. These payments appear in the Reimbursements report in Seller Central.
The second is a manual claim. Automation is not comprehensive: if a seller does not receive an automatic reimbursement but believes stock has been lost or damaged, a manual claim is still required. All removal claims must be filed manually. This is where the eligibility windows below matter, because a claim filed late is a claim Amazon will not pay.
Claim types and current eligibility windows
Amazon set the current eligibility windows on 23 October 2024, and they remain in force in 2026. Each claim type has its own deadline, measured from a different trigger date.
| Claim type | When it applies | Eligibility window |
|---|---|---|
| Fulfilment centre operations | Item lost or damaged inside an Amazon fulfilment centre | Within 60 days of the item being reported lost or damaged |
| FBA customer returns | Customer return not returned to stock or reimbursed correctly | Between 60 and 120 days after the customer refund or replacement date (not before day 60) |
| Removal, lost in transit | Removal or return-to-seller shipment lost on the way back | Between 15 and 75 days from the shipment creation date (not before day 15) |
| Other removal claims | Other issues with a removal order | Within 60 days of the shipment being delivered back to the seller |
The practical takeaway is that the customer returns window does not open until day 60 and closes at day 120, giving a real filing period of about two months, while fulfilment centre and other removal claims must be filed within 60 days of the trigger. Sellers who reconcile inventory monthly rather than quarterly are far less likely to miss a window.
The 2025 valuation change and what it means for margins
The single most important recent change is how Amazon values a reimbursement. Effective 31 March 2025 (revised from an originally announced 10 March 2025), Amazon reimburses lost or damaged inventory based on the product’s manufacturing cost rather than its selling price, for items lost or damaged before a customer order.
Amazon defines manufacturing cost as the seller’s cost to source a product from a manufacturer, wholesaler or reseller, or to produce it if the seller is the manufacturer. It excludes shipping, handling, customs duties and other costs. Because this basis is lower than the retail price, reimbursements on high-margin products can fall substantially compared with the old selling-price method.
Sellers can influence the figure. Amazon will apply its own estimated manufacturing cost, built from data on comparable products sold by Amazon, by other sellers and through wholesale channels, unless the seller provides their own cost. A seller can enter actual sourcing costs, and Amazon may request proof-of-value documents such as manufacturer, wholesale, purchase or commercial invoices to accept a correction. Providing accurate, documented costs is the practical defence against being under-reimbursed by an estimate.
One important exception survives: for items lost or damaged after a customer has ordered them, Amazon continues to reimburse the sales price on the original order, minus applicable fees.
How to check and reclaim what Amazon owes you
Reclaiming reimbursements is a routine, repeatable process in Seller Central:
- Open the Reimbursements report and review what Amazon has already paid automatically, so nothing is claimed twice.
- Cross-check the Inventory Ledger and inbound shipment reconciliation for discrepancies: units received short, lost in transit, or adjusted without a matching reimbursement.
- Set and document your manufacturing costs on the Manage Your Manufacturing Cost page in the Inventory Defect and Reimbursement portal, so any future payout is based on your figure rather than Amazon’s estimate.
- File manual claims for anything not auto-reimbursed, within the eligibility window for that claim type, and keep the supporting invoices ready.
- Repeat monthly. The 60-day windows mean a quarterly review will let recoverable amounts expire.
What changed: background to the current rules
The current framework comes from Amazon’s 2024 overhaul of FBA reimbursements. In that change Amazon introduced automatic reimbursements for lost items from 1 November 2024 and, from 23 October 2024, replaced the previous 18-month claim window with the much shorter windows set out above. The 2025 manufacturing-cost valuation change then altered how much each claim is worth. Together they moved the burden onto sellers to reconcile quickly and to keep accurate cost records.
Notes for EU and Irish-registered sellers
The manufacturing-cost basis and the eligibility windows apply across Amazon’s marketplaces, including the EU stores, with each region’s FBA reimbursement policy page describing the same structure. Reimbursements are paid in the marketplace’s local currency, so a seller trading on Amazon.de, Amazon.fr or other EU stores is reconciling in euro. Certain figures are marketplace-specific: the UK page, for example, applies a GBP 2,000 cap on pre-order lost or damaged reimbursements (a UK rule, not an EU-wide one).
For EU and Irish-registered sellers the documentation point is especially relevant. Manufacturers’ and commercial invoices used for import and VAT purposes are exactly the proof-of-value documents Amazon accepts for sourcing-cost corrections, so a business with clean import records is well placed to defend its reimbursement values. Selling into the EU also means getting the underlying setup right: an Irish company, correct VAT registration in Ireland, and a compliant marketplace presence. Chern & Co supports sellers across these steps through its Amazon services, and our summary of the wider 2025 updates for EU Amazon sellers gives the broader compliance picture.
US and other non-EU sellers who want to trade inside the EU frequently do so through an Irish company, which gives an EU base for VAT and marketplace registration. If that describes your situation, the requirements checklist for non-resident company registration in Ireland sets out what is involved, and our non-resident company formation package bundles the setup into a single service.
Reclaim what Amazon owes you, with the right EU setup behind you
Recovering FBA reimbursements is easier when your Irish company, VAT and Amazon account are set up correctly and your cost records are in order. Chern & Co is a licensed Irish corporate services provider that helps EU and UK Amazon sellers get established and stay compliant. Learn more about our trusted Amazon SPN partner service for EU and UK sellers.
Frequently asked questions
Does Amazon reimburse FBA sellers automatically, or must a claim be filed?
Both. Since 1 November 2024 Amazon proactively reimburses most items reported lost in its fulfilment centres and shows them in the Reimbursements report. If an automatic reimbursement does not appear, or the item is a removal, the seller must file a manual claim within the relevant eligibility window.
How is an FBA reimbursement calculated in 2026?
For items lost or damaged before a customer order, Amazon reimburses on the product’s manufacturing (sourcing) cost, excluding shipping, handling and customs, effective 31 March 2025. For items lost or damaged after a customer order, Amazon still reimburses the original sales price minus fees.
What are the current claim deadlines?
Fulfilment centre operations claims: within 60 days of the item being reported lost or damaged. FBA customer returns: between 60 and 120 days after the refund or replacement. Removal claims for items lost in transit: 15 to 75 days from shipment creation. Other removal claims: within 60 days of the shipment being delivered back.
How can a seller avoid being under-reimbursed?
Enter and document actual manufacturing costs on the Manage Your Manufacturing Cost page in the Inventory Defect and Reimbursement portal, keeping invoices ready as proof of value. Otherwise Amazon applies its own estimate, which may be lower than the true cost.
Do these rules apply to EU and Irish sellers?
Yes. The manufacturing-cost basis and eligibility windows apply across Amazon’s marketplaces, including EU stores, with reimbursements paid in local currency. Some caps are marketplace-specific, such as the UK’s GBP 2,000 cap on pre-order reimbursements.
This article is general guidance for Amazon sellers and does not constitute legal or tax advice. Amazon’s policies change; always confirm the current terms on the relevant Seller Central policy page for your marketplace.
