Running a successful business on Amazon requires more than products and competitive pricing. It demands staying updated on policy changes that can impact your sales. In 2025, Amazon has introduced several key updates. Understanding these changes is important for improving your business in Amazon. Below, we break down the most important updates and what they mean for sellers.
Major Changes to FBA Reimbursement Policy
Amazon’s FBA reimbursement policy is undergoing a significant shift in how sellers are compensated for lost or damaged inventory.
Previously, Amazon reimbursed sellers based on the item’s retail price, making it a favourable system for many businesses.
As of March 10, 2025, reimbursements will be calculated based on the manufacturing cost, not the retail price. This means sellers will need to provide detailed documentation proving their cost of goods to receive proper reimbursement.
What This Means for Sellers:- Sellers who previously relied on retail-value reimbursements may see lower compensation for lost or damaged inventory.
- Maintaining clear records of manufacturing costs will be essential for smooth reimbursement claims.
- This policy change reduces financial risk for Amazon but increases the burden on sellers, especially those with high-margin products.
Sellers should re-evaluate inventory protection strategies and explore additional insurance options to mitigate potential losses.
2025 Fee Adjustments
Amazon has announced multiple fee changes and new savings options for 2025. Here are the key highlights:
- Multi-Channel Fulfilment (MCF) Fees: On average, MCF fees will increase by 3.5%, but fees for small items (under 1 lb) will remain unchanged.
- Amazon Warehousing & Distribution (AWD) Discounts: Sellers can now get a 10% discount on AWD storage fees if they maintain sufficient inventory levels.
- Distance-Based Shipping for MCD: Amazon is shifting to distance-based fees for outbound Multi-Channel Distribution (MCD) shipments—lower costs for short distances, higher costs for longer ones.
- Supply Chain by Amazon Discounts: Sellers using this managed service will receive 20% off AWD storage fees and 10% off AWD transportation fees.
- Buy with Prime Adjustments: No increase in Prime service fees, and fulfilment fees for some large standard-size items will decrease.
New Product Title Requirements
Amazon has introduced stricter rules for product titles to improve customer experience and search accuracy. Starting January 21, 2025:
- Most product categories must keep titles under 200 characters (including spaces).
- Special characters such as !, $, ?, _, {, }, ^, ¬, and ¦ are not allowed, unless they are part of a brand name.
- The same word cannot be repeated more than twice within a title, with exceptions for prepositions, articles, and conjunctions.
Sellers should review their product listings and make necessary adjustments to ensure compliance. Non-compliant titles could result in suppressed listings.
These changes reflect Amazon’s continued focus on efficiency and cost control. Sellers should assess their fulfilment strategies and take advantage of the new discount programs where applicable