The Christmas rush is over—or it looks like it is? Well, everyone is already gearing up for the changes 2025 will bring. And it’s a loooot to take in.
AMAZON NEWS
A new reimbursement policy surprises sellers
Amazon sellers were relieved in November when the company announced no new fees for its Fulfillment by Amazon (FBA) service in 2025. But just a week before Christmas, Amazon revealed an unwelcome surprise: a change to how it reimburses FBA sellers for lost or damaged inventory, according to Modern Retail.
Starting March 2025, Amazon will only refund sellers the product’s manufacturing cost, not the full retail value. This policy change is expected to reduce seller earnings significantly.
Limited reimbursement options raise concerns
Sellers now have two options for reimbursement calculation:
Many sellers are concerned this will lead to inaccurate refunds or expose sensitive cost data to Amazon. It definitely feels like a fee increase in disguise to some sellers.
Jon Derkits, a former Amazon employee turned seller consultant, added, “This change comes at the worst time, just before the holidays. It’s a huge blow for many sellers.”
Fear over data privacy and business control
In a statement, Amazon claimed the policy provides “greater transparency and predictability.” But many sellers believe it’s just another move to tighten control over their businesses.
While the change is aimed at offering consistency, sellers worry about how Amazon might use their manufacturing cost data, especially with its history of allegedly copying third-party products for its private-label business.
Sellers consider alternatives to Amazon
For some sellers, this policy change is a deal-breaker. Lori Barzvi, who has sold on Amazon for a decade, is investing in her own direct-to-consumer website to reduce reliance on the platform. “I don’t want to give Amazon any more control or money,” Barzvi said.
The long-term effects of this policy shift are still unclear, but sellers are bracing for reduced payouts and increased challenges as they navigate Amazon’s evolving ecosystem.
BLACK MARKET
$5 million worth of inventory is stuck at FBA for no reason
A top US seller, who has been selling on Amazon since 2016 and averages $50 million in annual sales, is facing a serious issue with Amazon. They shared this on the Seller Forums, hoping to get some insights about their problem. The platform has shut down their account, leaving $5 million worth of inventory stuck in Amazon’s warehouseswithout clear reasoning.
The seller, who prides themselves on compliance, is baffled by the shutdown. According to them, Amazon raised concerns about one ASIN, claiming the supplier was "unverifiable." However, the seller provided invoices directly from brand owners and major wholesalers, but Amazon never contacted the supplier for confirmation.
What’s more frustrating is that each time the seller resolves one issue, Amazon raises a new one, further delaying the process. Despite the seller’s eight years of compliance and success on the platform, Amazon seems determined to block their return, leaving the seller with unpaid loans and suppliers.
The seller is calling for accountability from Amazon, arguing that shutting down a business over concerns about one product, without properly verifying the facts, is unfair. They believe Amazon should have reviewed the information before locking down their business.
For sellers who rely on Amazon, this story highlights the importance of transparency and communication when resolving disputes. There are currently no responses from the Amazon team on this thread.
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BITES OF THE WEEK
HOT TOPIC
In 2025, Amazon is focusing on simplifying and stabilizing costs for sellers. Despite inflation and rising operational expenses, Amazon has announced there will be no increases in US referral and Fulfillment by Amazon (FBA) fees, and no new fee types introduced. In fact, some fees are being reduced, and additional benefits are being offered to sellers.
Key updates for 2025:
These changes are part of Amazon’s commitment to driving growth for sellers while maintaining a straightforward fee structure. For a complete breakdown of 2025 fees, visit Amazon’s page about this.
What do you think of these fee changes? Do you agree with them? Let us know by replying directly to this email!
