Amazon's New FBA Policy Gives Sellers More Control Over Inventory and Reimbursements
Amazon has implemented a significant policy change affecting millions of marketplace sellers using its Fulfillment by Amazon (FBA) service. The modifications, introduced on March 31, 2025, after a three-week delay, provide sellers with more control over their inventory and reimbursement processes.
The new FBA Damaged Inventory Ownership program allows sellers to opt out of Amazon's damage-fault ownership evaluation process. Sellers can configure their preferences through the Fulfillment by Amazon settings page, choosing to disable Amazon's ownership assumption for all ASINs or specific products, up to 10,000 ASINs. This means sellers can retain ownership of Amazon-fault damaged inventory instead of receiving reimbursements and having Amazon dispose of the products.
The policy modification also affects inventory tracking and reporting procedures. Enrolled inventory appears in unfulfillable inventory with 'Defective' disposition status. Amazon has integrated this program with its existing FBA Grade and Resell service, allowing enrolled inventory units to be resold through this channel. The policy change coincides with updates to Amazon's FBA inventory reimbursement policy, shifting compensation calculations from retail pricing to manufacturing costs for lost or damaged inventory occurring before customer orders.
Amazon stated that these policy changes aim to provide 'greater transparency and more predictability' in how reimbursements are calculated and to 'drive a more consistent approach' in supporting sellers with supply chain services. The modifications, which took effect on March 31, 2025, after a three-week delay from the original March 10 date, give sellers more control over their inventory and reimbursement processes.
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