It’s not misleading in the sense that they are requiring you to disclose your margins and proprietary information to prove those margins, when they are your competitor. Most sellers are not selling unique items and the ones they would probably compete against are selling the same item over and over again, so they can clearly use this information to determine which sellers they can squeeze the most easily, which categories they should run their own competing product in, demand your prove it so that they can identify your suppliers, by just using information from a few transactions where they decide to damage or lose your product.

Did they change the article, because on the version I've read it doesn't say you have to disclose your cost, it says you can if you disagree with their estimate.

Plus, is Amazon loosing goods a common occurrence or this is a policy designed to solve an extraordinary issue?

The title is misleading, regardless of how bad the policy is.

Even so, it is a fairly hostile policy. If Amazon looses or destroys an item under their control, I’d expect them to cover the cost of getting a new item “in inventory”. Car insurance is often for “replacement value”, right?

I agree with what you are saying plus I have to wonder if this is a ploy by Amazon to find out the margins of their resellers. Which to me could be view as an anti-trust issue, but in a way legal.

>Car insurance is often for “replacement value”, right?

I think it depends upon your insurance. The insurance I have for cars is always based upon the value of the car at accident time, usually far less then its replacement value.

I totally agree with that—Walmart, for example, looks to reimburse the seller with the average sale price in that situation [0]. Have to wonder if there’s any limit to how unfair FBA policies can get before it isn’t worth it for sellers.

0. https://marketplacelearn.walmart.com/guides/Walmart%20Fulfil...

Prior to being sold but after shipped and stored at Amazon's ware house. So I guess all the items marked as Prime / Shipped by Amazon.