Amazon has made three compounding policy changes since late 2024 that have fundamentally restructured how, when, and how much sellers get reimbursed for lost and damaged FBA inventory — and the sellers who haven't updated their audit process are permanently forfeiting money they're owed, right now, every week.
On October 22, 2024, you could file claims going back 18 months — to April 2023. On October 23, 2024, that window collapsed to 60 days. Up to 16 months of legitimate claims evaporated overnight for sellers who hadn't acted.
Then Amazon started auto-reimbursing warehouse lost items in November 2024 — but industry data shows 40–60% of eligible claims still go unclaimed under the automated system.
Then, in March 2025, Amazon switched from reimbursing at selling price to manufacturing cost — dropping average per-unit recovery from $18.50 to $6.20, a 66% reduction.
Combined, these three changes mean: the window to act is short, the auto-system misses more than it catches, and the payout per recovered unit is smaller than it used to be.
If you're still doing annual or quarterly audits, you're losing money every week. Here's exactly what changed and what to do about it.
Change 1: The 89% Window Reduction — From 18 Months to 60 Days
Effective October 23, 2024, Amazon reduced the eligibility window for filing manual claims by 89% — from 18 months down to 60 days for most claim types.
The overnight consequence was severe:
- October 22, 2024: You could file claims going back to April 2023 (18 months)
- October 23, 2024: You could only go back 60 days to August 24, 2024
- Result: Up to 16 months of legitimate claims became permanently ineligible
Threecolts breaks down the exact date-by-date impact: sellers who hadn't run a comprehensive audit before October 23 lost the ability to claim thousands of dollars in lost and damaged inventory.
Current claim windows (post-October 2024):
- Fulfillment Center Operations (warehouse lost/damaged): 60 days from the event date
- Customer Returns: 60–120 days after the refund date (not eligible until day 60, expires at day 120)
- Removal Claims: 15–75 days from shipment creation
- All other removal claims: 60 days from delivery back to seller
The 60-day window is now the standard for most claim types — and it's unforgiving. Miss the deadline by one day, and that money is permanently gone.
Change 2: Auto-Reimbursement — What It Covers and What It Misses
Starting November 1, 2024, Amazon began auto-reimbursing sellers for items reported as lost in fulfillment centers — framed publicly as a seller benefit.
In practice, the automated system leaves significant gaps.
Carbon6's analysis indicates the new program leaves up to 40% of potential reimbursements unclaimed, with some sellers forfeiting as much as 60% of money owed. The auto-reimbursement system applies only to warehouse lost items — it does not cover:
- Mishandled customer returns (still requires manual filing)
- Removal claim discrepancies (still requires manual filing)
- Inbound shipment shortages (still requires manual filing)
- FBA fee overcharges (still requires manual filing)
- Warehouse damaged items (still requires manual filing)
- Disposed inventory (still requires manual filing)
Riverbend Consulting notes that even within warehouse lost items, the auto-system misses cases where:
- The loss event isn't properly coded in Amazon's system
- Multiple units are lost but only one is auto-reimbursed
- The FNSKU doesn't match exactly between the loss event and reimbursement record
The operational reality: Auto-reimbursement is helpful but incomplete. You still need to audit manually to catch what Amazon's system misses.
Change 3: Manufacturing Cost Basis — The 66% Recovery Drop
The real dollar impact:
Under the old system, a product selling for $45 that Amazon lost would be reimbursed at approximately $45 — essentially a sale with no ad spend. Under the new system, only the sourcing cost is reimbursed.
Nova Analytics data from November 2025 puts the average per-unit recovery drop from $18.50 to $6.20 — a 66% reduction.
What Amazon's estimate gets wrong:
Sellers who do not manually submit their sourcing costs through the Inventory Defect and Reimbursement portal in Seller Central get whatever Amazon's algorithmic estimate assigns them, which is consistently reported by sellers as lower than actual cost.
The portal accepts per-ASIN/FNSKU cost entries with supporting invoices, and those submissions can be updated at any time — but only matter if the claim is filed before the 60-day window expires.
Sellerise clarifies what manufacturing cost excludes: shipping, duties, packaging, and other landed costs. Only the actual product sourcing cost counts.
Example from Titan Network:
A $45 product with a $12 sourcing cost:
- Old system: $45 reimbursement (essentially a sale)
- New system (Amazon estimate): ~$8 reimbursement
- New system (your actual cost): $12 reimbursement
The difference between accepting Amazon's estimate and submitting your actual cost is $4 per unit. On 100 lost units, that's $400 left on the table.
The Four Claim Types That Still Require Manual Filing
Auto-reimbursement only covers warehouse lost items. These four claim types still require manual identification and filing:
1. Customer Returns (60–120 Days)
Returns that Amazon didn't restock due to their processing error. The window is strict: file between day 60 and day 120 after the return date. File too early (before day 60), and Amazon rejects it. File too late (after day 120), and it's expired.
Eligible dispositions:
- DEFECTIVE (if Amazon processing caused damage)
- CARRIER_DAMAGED (damaged during return transit)
- FC_PROCESSED_WRONG (fulfillment center error)
Not eligible:
- CUSTOMER_DAMAGED
- SELLABLE (item was restocked)
- EXPIRED
- WRONG_ITEM
2. Removal Claims (15–75 Days)
Discrepancies between what you requested to be removed and what Amazon actually shipped back. The window is 15–75 days from shipment creation.
3. Inbound Shipment Discrepancies
Short shipments where Amazon received fewer units than you shipped. Requires comparing your shipping plan against the Received Inventory report.
4. FBA Fee Overcharges
Incorrect fulfillment fees, storage fees, or referral fees. Requires comparing Fee Preview reports against actual charges.
All four of these claim types are invisible to Amazon's auto-reimbursement system. They require manual identification through report analysis.
Why Annual Audits Are Now Functionally Useless
The math is simple: with a 60-day window, an annual audit means you're only catching claims from the last 60 days — and missing everything that expired in the previous 305 days.
Example:
- Annual audit (January 1): Catches claims from November 2–December 31 (60 days)
- Missed: All claims from January 1–November 1 that expired (305 days of lost money)
The operational conclusion is unambiguous — weekly audits are now a financial necessity, not an optional best practice.
Even quarterly audits are insufficient. With a 60-day window, a quarterly audit means you're only catching claims from the last 60 days of that quarter — and missing everything that expired in the first 30 days.
The new cadence:
- Weekly audits: Catch everything within the 60-day window
- Monthly audits: Acceptable but risky (you'll miss some claims that expire between audits)
- Quarterly audits: Too infrequent — you'll forfeit 30+ days of claims
- Annual audits: Functionally useless — you'll forfeit 305+ days of claims
The Three-Report Method: What You Need to Pull
To run a comprehensive audit, you need three reports from Seller Central:
Report 1: Inventory Ledger — Detailed View
Navigation: Reports → Fulfillment → Inventory Ledger → Detailed View
Date Range: Last 60 days
What it shows: All inventory adjustments (lost, damaged, disposed items) with reason codes
Report 2: Reimbursements Report
Navigation: Reports → Fulfillment → Payments → Reimbursements
Date Range: Last 60 days (must match Report 1)
What it shows: What Amazon has already reimbursed you for (to avoid duplicate claims)
Report 3: FBA Customer Returns
Navigation: Reports → Fulfillment → Customer Concessions → FBA Customer Returns
Date Range: 60–120 days ago (not the last 60 days!)
What it shows: Returns that may be eligible for reimbursement claims
The workflow:
- Cross-reference Report 1 against Report 2 to find unclaimed lost/damaged inventory
- Cross-reference Report 3 against Report 2 to find unclaimed return issues
- Prioritize by urgency (claims expiring soonest first)
- File claims with your actual manufacturing costs (not Amazon's estimate)
Refunzo provides a detailed walkthrough of the three-report method, including how to interpret reason codes and match events to reimbursements.
What To Do Right Now
1. Run your first audit this week
Don't wait. Every day you delay, claims are expiring. Use the Lucrivo FBA Reimbursement Audit Tool to upload your three Seller Central reports and see exactly how much Amazon owes you in under 60 seconds. The tool cross-references your inventory events against existing reimbursements and prioritizes claims by urgency.
2. Set up weekly audit cadence
Pick one day per week (e.g., every Monday) and make it a non-negotiable task. With a 60-day window, weekly audits ensure you never miss an expiring claim.
3. Submit your manufacturing costs
Access the Inventory Defect and Reimbursement portal in Seller Central and submit your actual sourcing costs per ASIN/FNSKU. Include supporting invoices. This ensures you get reimbursed at your actual cost, not Amazon's algorithmic estimate.
4. Document everything
Keep copies of:
- Your three reports (Inventory Ledger, Reimbursements, Customer Returns)
- Supporting invoices for manufacturing costs
- Claim submission confirmations
- Any correspondence with Seller Support
5. Don't rely on auto-reimbursement alone
Auto-reimbursement is helpful but incomplete. Continue manual audits to catch what Amazon's system misses — especially customer returns, removal discrepancies, and fee overcharges.
The Real Dollar Impact: What You're Actually Losing
Titan Network models the real-dollar impact: a 2% recovery rate on $5M annual revenue equals $100K in found money.
But that's under the old system.
Under the new system:
- Window is 89% shorter (60 days vs. 18 months)
- Recovery per unit is 66% lower ($6.20 vs. $18.50 average)
- Auto-system misses 40–60% of eligible claims
The new math:
If you were recovering $100K annually under the old system, you're now recovering approximately:
- $100K × (60 days / 540 days) = $11K from window reduction
- $11K × 0.34 = $3.74K from manufacturing cost reduction
- $3.74K × 0.5 = $1.87K if you rely on auto-reimbursement alone
Manual weekly audits restore most of that:
- $11K × 0.6 = $6.6K (catching what auto-system misses)
- $6.6K × 1.5 = $9.9K with proper manufacturing cost submissions
You're still losing money compared to the old system, but weekly manual audits minimize the damage.
Bottom Line: Weekly Audits Are Now Non-Negotiable
Amazon's three policy changes have fundamentally restructured the reimbursement system:
- 60-day window (down from 18 months) — requires frequent audits
- Auto-reimbursement gaps (40–60% unclaimed) — requires manual verification
- Manufacturing cost basis (66% lower recovery) — requires cost submissions
The operational conclusion is unambiguous: Weekly audits are now a financial necessity, not an optional best practice.
Annual audits are functionally useless. Quarterly audits forfeit 30+ days of claims. Monthly audits are risky. Weekly audits are the minimum viable cadence.
Run your first audit this week using the Lucrivo FBA Reimbursement Audit Tool. Upload your three Seller Central reports and see exactly how much Amazon owes you — prioritized by urgency, with pre-written claim text ready to paste into Seller Central.
Every day you delay, claims are expiring. Don't let another week pass without knowing what you're owed.
The Lucrivo Newsletter — Coming Soon! Please check out our content on our website for now — explore the blog, tools, and automations roadmap.
