Understanding Amazon's Updated Selling Policies and Compliance Requirements for 2025

Amazon's updated selling policies and compliance requirements for 2025 introduce significant changes across inventory management, insurance, reimbursement, product listing, and seller accountability, reflecting a stricter regulatory environment focused on product safety, marketplace integrity, and operational efficiency.

Key updates include:

• FBA Storage Capacity Limits: Amazon has tightened Fulfillment by Amazon (FBA) storage limits, reducing the allowable inventory from approximately six months of forecasted sales to five months starting May 2025. This includes reinstated ASIN-level restock limits, meaning sellers face caps not only on overall inventory but also on individual product units, complicating stock planning especially around peak events like Prime Day.

• Seller Liability Insurance: From January 2025, sellers exceeding certain gross sales thresholds must maintain valid liability insurance and proactively update Amazon about policy changes or expirations within 30 days. Amazon no longer requires sellers to name the platform as an additional insured but places greater responsibility on sellers to manage compliance. Non-compliance risks account suspension.

• Reimbursement Policy Overhaul: Effective March 10, 2025, Amazon changed its reimbursement policy for lost or damaged inventory. Reimbursements are now based on the product's manufacturing cost rather than the retail or selling price. The claim window has been shortened from 18 months to 60 days, and sellers must provide cost data or accept Amazon’s often lower estimates. This change can significantly reduce compensation, especially for high-margin or branded products.

• Product Listing and Intellectual Property Compliance: Amazon enforces stricter rules on product authenticity, accurate listings, and intellectual property rights. Sellers must provide truthful product information, avoid prohibited practices like review manipulation, and secure proper authorization for branded products. The Brand Registry system actively monitors violations, and appeals require comprehensive documentation. Violations can lead to listing suppression or account termination.

These 2025 policy changes demand that sellers adapt their inventory strategies, maintain up-to-date insurance, carefully document manufacturing costs for reimbursement claims, and ensure full compliance with listing and intellectual property rules to avoid penalties or suspension.

Overall, Amazon’s 2025 updates reflect a shift toward increased seller accountability and tighter operational controls to enhance customer trust and marketplace integrity.