[tikkun]

I was confused about this, here's how I understand it now:

Previously when Amazon lost or damaged items in their warehouses, they would reimburse sellers the full sales price. Starting March 2025, Amazon will only reimburse the manufacturing cost of lost or damaged items. Sellers have to either accept Amazon's estimated manufacturing cost or provide documentation of their actual manufacturing costs.

[ActionHank]

This is brutal.

Amazon pays less in all outcomes. Amazon gets to reimburse you based on equivalent drop shipped item costs. Alternatively Amazon gets a breakdown of your costs which they can use as insight for their house branded alternatives and even negotiations with suppliers.

I suspect many premium brands are going to leave Amazon with this change.

[kardos]

> I suspect many premium brands are going to leave Amazon with this change.

That sounds like a win for Amazon, they get to fill the void with their house brand

[reaperducer]

Sellers have to either accept Amazon's estimated manufacturing cost or provide documentation of their actual manufacturing costs.

Human beings pouring over millions of documents of manufacturing costs doesn't scale. If it doesn't scale, Amazon typically gives up. All merchants have to do is flood Amazon with made-up documentation. What's Amazon going to do? Kick them off the platform? They just come back as ZUHUFRUAH and continue selling.

Use big tech's "scale" fetish against it.

[ActionHank]

It's sweet that you think they would introduce a human in this loop. This is going to be AI'd all the way.