Amazon maintains an estimated product cost on file for each ASIN, used to calculate reimbursement when inventory is lost, damaged, or disposed of in their fulfillment centers. Many sellers find Amazon’s default estimate is lower than their actual cost of goods, resulting in under-reimbursement. This post addresses how to submit documentation to increase that estimate.
Why this matters
If your product cost estimate in Amazon’s system is significantly below your true COGS, you’ll absorb losses when damage or shortage claims occur. Correctly documenting and updating this figure protects your margins and ensures fair reimbursement.
What documentation typically works
Sellers report success with:
- Invoices from your manufacturer or supplier showing unit cost
- Bill of materials (BOM) if you’re manufacturing
- Landed cost calculations (COGS + freight + duties)
- Packaging and labeling costs if included in your cost basis
- Screenshots or exports from your supplier account showing per-unit pricing
Amazon generally requires proof that directly ties the cost figure to your actual spend per unit.
How Squatio helps
When you’re sourcing products or validating supplier quotes, Prospect (Product Database) helps you research competitor-level pricing and market positioning, giving you confidence in your own cost targets and margins. Understanding your true landed cost is foundational to any successful reimbursement claim — and to profitable selling overall.
Have you submitted a cost increase request to Amazon? What type of documentation did they accept, and how long did the process take?
Source: Reddit