When Amazon reimburses you for lost or damaged inventory, they use their own calculation of your product’s value. That often doesn’t match what you actually paid. If your costs aren’t updated, you could end up being short-changed.
The good news? You can take control by updating your costs in Seller Central. Here’s exactly how to do it, what to expect, and how to dispute a low reimbursement.
Why Updating Your Costs on Amazon Matters
- Fair reimbursement: Amazon will use your submitted cost when processing FBA reimbursements.
- Accurate accounting: Your inventory costs stay aligned with your true purchase prices.
- Fewer disputes: Submitting costs upfront reduces the chances of Amazon undervaluing your products.
Step 1: Update Your Product Costs in Seller Central
Amazon provides a cost management page where you can input your costs:
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Update Your Costs on Amazon
On this page, you can:
- Enter the cost per unit for each SKU
- Submit your costs for review
- Upload invoices if Amazon requests proof
Step 2: Amazon Reviews Your Submission
After updating your costs, Amazon will either:
- Accept them automatically, or
- Request supporting documents, such as invoices that show supplier, purchase date, SKU, and unit cost
Make sure your invoices are clear and easy to match with your Amazon listings.
Step 3: Check Your FBA Reimbursements
Once accepted, your costs should be used for future FBA reimbursement calculations. That means more accurate payouts when Amazon loses or damages inventory.
But what if Amazon still underpays you? That’s when you need to file a dispute.
Step 4: Dispute an Amazon Reimbursement
If you believe Amazon reimbursed you too little, submit a dispute:
Dispute a Reimbursement on Amazon
When filing, include:
- The ASIN/SKU and case ID
- Clear reasoning why the reimbursement is incorrect
- Supporting documents (invoices, receipts, etc.)
This gives Amazon the evidence they need to adjust your reimbursement.
Best Practices for Amazon Sellers
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Update costs regularly: don’t wait until a problem arises
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Keep digital copies of invoices: easy to upload when needed
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Audit reimbursements: check that the amount matches your cost of goods
Amazon FBA reimbursements can add up to real money over time. By proactively updating your costs in Seller Central, you ensure Amazon reimburses you fairly and you’re not leaving profits on the table.
Take 10 minutes today to update your costs.
