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The definition of manufacturing cost, as laid out by Amazon, is particularly troubling for many sellers. This cost is primarily based on the sourcing price from manufacturers or wholesalers and notably excludes essential expenses like shipping and customs duties. In reality, shipping and customs could constitute up to 30% of a seller's total costs. This means sellers might end up subsidizing Amazon’s operational failures without any compensation for the full scope of their investment.

Moreover, the reimbursement is based on either an estimate provided by Amazon or an actual manufacturing cost stated by the seller. In many instances, sellers may feel pressured to reveal sensitive financial information, putting them at risk of having their products undercut by Amazon itself.