The Amazon ecosystem continues to evolve in 2025, bringing both challenges and opportunities for sellers. While Amazon has maintained its commitment to “simplicity and stability” with no increases to standard FBA fulfillment fees, several significant operational changes have been implemented that require strategic adaptation.
For brands and sellers managing their Amazon business, understanding these changes is crucial to maintaining profitability and competitive advantage. Let’s examine the key policy shifts and how a professional Amazon management approach can help navigate them effectively.
Table of Contents
Key Amazon Changes in 2025
Reimbursement Policy Updates (March 31, 2025)
Amazon has fundamentally revised its reimbursement policy for lost or damaged inventory:
- Reimbursements are now calculated based on manufacturing costs rather than selling price
- The claim window has been reduced from 18 months to just 60 days
- Sellers must provide cost data or accept Amazon’s estimates, which can be significantly lower
- The narrow “manufacturing cost” definition excludes shipping, duties, FBA prep fees, and other expenses
This change particularly impacts high-margin products, custom items, and brands where significant value comes from branding rather than production cost.
Inventory Capacity Adjustments (May 2025)
Amazon has implemented tighter FBA capacity limits that affect inventory management:
- Overall storage reduced from approximately 6 months of expected sales to around 5 months
- Allocation increasingly tied to performance metrics like IPI scores
- Evidence of returning ASIN-level restrictions alongside account-level limits
- Inbound shipments counted against capacity before arriving at fulfillment centers
These limitations create a balancing act where slow-moving inventory doesn’t just tie up capital—it now actively prevents stocking fast-selling products.
Shipping Option Modifications (February 20, 2025)
The “Partial Shipment Splits” option for standard-size items has been eliminated, forcing sellers to choose between:
- Paying full inbound placement service fees for minimal shipment splits (higher costs)
- Managing multiple separate shipments via the Amazon-optimized option (higher operational complexity)
External Factors
New US tariffs (10% baseline plus targeted increases) have created additional cost pressures, especially for sellers with international supply chains.
Strategic Approaches for Amazon Success in 2025
Successful adaptation to these changes requires a comprehensive approach across several areas:
Reimbursement Optimization
- Documentation Excellence: Maintain meticulous records with readily accessible invoices and detailed cost breakdowns for all SKUs
- Weekly Reconciliation: With the 60-day claim window, implement rigorous weekly inventory auditing
- Strategic Cost Submission: Carefully evaluate which SKUs benefit from providing cost data versus accepting Amazon’s estimates
- Third-Party Insurance: For high-value inventory, consider specialized e-commerce insurance policies as supplemental protection
Inventory Management Solutions
- IPI Score Maximization: Prioritize keeping scores above 500 to improve capacity allocation
- Precision Stock Rotation: Implement protocols to identify and remove aging inventory before triggering long-term storage fees
- Strategic AWD Utilization: Use Amazon Warehousing & Distribution as a buffer for seasonal items
- Advertising/Inventory Alignment: Focus promotional efforts on products with excessive stock to improve inventory health metrics
Marketing and Visibility Strategy
- Compliance-First Optimization: Master Amazon’s evolving title requirements while maintaining search visibility
- Advanced Advertising Frameworks: Leverage data-driven tools for campaign optimization across sponsored products, brands, and display
- External Traffic Generation: Develop multi-channel marketing strategies to drive targeted traffic directly to your listings
- Dynamic Pricing: Implement intelligent repricing to remain competitive while protecting margins
Frequently Asked Questions About Amazon Changes in 2025
Before March 31, 2025, Amazon reimbursed based on the item’s average selling price minus applicable fees. Now, reimbursements are calculated solely on manufacturing cost, excluding shipping, duties, prep fees, and all other expenses. Sellers must provide cost data or accept Amazon’s estimates, which are often significantly undervalued.
Focus on improving your IPI score through better inventory turnover. Consider using Amazon Warehousing & Distribution (AWD) as a strategic buffer, implement more frequent smaller shipments, and leverage promotional tools to accelerate sales of aging inventory. Working with an Amazon inventory management service can also help optimize your approach.
Standard fulfillment fees remain unchanged from 2024 non-peak rates. However, Amazon eliminated the “Partial Shipment Splits” option for standard-size items and restructured inbound placement fees, creating different cost pressures despite the headline stability.
The new 10% baseline US tariff plus targeted increases (especially for China-sourced goods) have significantly raised landed costs. This forces difficult decisions between absorbing costs (reducing margins) or raising prices (potentially losing sales). Sourcing diversification has become essential for maintaining profitability.
Take advantage of the FBA New Selection Program benefits, particularly the temporary fee waiver for the first 100 units of eligible new parent ASINs. The Low-Price FBA program for products under $10 still provides a valuable $0.77 per-unit discount on fulfillment fees.
Many brands find that working with an Amazon account management agency helps navigate complex policy changes more effectively. The best Amazon management services offer expertise in reimbursement recovery, inventory optimization, and advertising that can be difficult to maintain in-house, especially for small to mid-sized brands. Consider seeking Amazon seller management services if you’re struggling to adapt to the 2025 changes.
The Amazon landscape in 2025 demands more sophistication than ever. While many sellers struggle to adapt to these changes, partnering with the right Amazon management agency can turn challenges into competitive advantages.
Eva is a full-service Amazon agency that combines AI-powered technology with expert guidance to help sellers thrive in the evolving marketplace. As an experienced Amazon seller agency, we provide comprehensive solutions that address all aspects of Amazon success:
Reimbursement Recovery
Our Amazon FBA management service includes AI-powered reimbursement systems that help sellers maximize recovery under Amazon’s new policies with proactive monitoring and documentation strategies.
Intelligent Inventory Management
Eva’s Amazon seller account management services include inventory solutions that help optimize limited FBA capacity with AI-driven tools that predict demand and prevent stockouts.
Advertising Excellence
As an Amazon seller marketing agency, Eva’s integrated approach delivers results with inventory-aware PPC management, precision bid optimization, and advanced audience targeting.
Profit Analytics
Our Amazon management services provide comprehensive insights with complete profit visibility, product-level metrics, and dynamic pricing intelligence.
Real Results for Our Clients
- 51% average increase in profits for our clients
- Over $6 billion in sales generated
- $1.6+ billion in ad spend optimized
- 40% reduction in operational costs
- 95% reduction in stockouts
As an Amazon agency focused on results, Eva offers tailored solutions for brands of all sizes. Whether you need Amazon store management services, an Amazon optimization agency, or comprehensive Amazon seller central agency support, we’re here to help.
Don’t let Amazon’s policy shifts affect your business growth potential. Claim your FREE audit and forecast today to see how Eva can transform these challenges into your biggest growth opportunities yet.
