Amazon Sets an MCF Reimbursement Cap of £250 a Unit

In brief: Amazon set an MCF reimbursement cap from 23 August 2024, limiting what it pays when a unit is lost or damaged while being fulfilled through Multi-Channel Fulfilment (MCF). The cap is £250 per unit in the UK and €275 in Germany, France, Italy and Spain. Amazon suggested third-party insurance for anything worth more, saying the cap matched wider industry practice.

The MCF reimbursement cap by country

Store	Maximum per eligible unit
UK	£250
Germany, France, Italy, Spain	€275
Canada	$400
Australia	$450
Mexico	$5,000

Amazon's notice also listed a Japanese cap.

A worked example

A seller ships a £700 camera to a website customer through MCF and the parcel is lost. Before the cap it could have been reimbursed at close to its value; from 23 August 2024 the most Amazon would pay is £250, leaving £450 of stock value unrecovered unless it was insured.

What it means for your bookkeeping

• Reimbursements may not cover cost. When the payout is below the item's cost, the gap is a stock loss. Write it off in the period, so stock isn't overstated.

• Record reimbursements as they appear. Amazon's reimbursement arrives as a line in your settlement; post it as income or against the stock loss consistently, and agree the approach with your accountant.

• FBA losses follow different rules. Stock lost or damaged in Amazon's warehouses, rather than on an MCF delivery, falls under the FBA reimbursement policy, which since March 2025 pays manufacturing cost — see the FBA reimbursement changes.

• Insurance becomes a cost of MCF. If you insure high-value MCF parcels, that premium is part of the true cost of fulfilling off-Amazon orders.

• Where it shows up. Reimbursements arrive as settlement lines — see reconciling an Amazon settlement.

How TrueBooks helps

TrueBooks posts every reimbursement line from your Amazon settlements to Xero, so you can see exactly what Amazon paid against each loss. See the Amazon Xero integration.