Amazon Reimbursement Loss – Is This Fair to Sellers?

I wanted to share a recent issue I’m facing with Amazon FBA, and I’d appreciate your thoughts or advice.

I sent 30 units of a product to FBA, each costing me £10.50 + £2.10 VAT = £12.60 per unit. Before the product even went live, 28 units went missing. This clearly points to a warehouse-side issue.

Here's the breakdown of what I’ve received so far:

Total reimbursement: £144.76

But my actual cost was:

28 units × £12.60 = £352.80

+ £15 handling/shipping

Total actual cost: £367.80

Total loss = £223.04

Amazon reimbursed me at £5.17/unit, which is not even 50% of my cost. I'm attaching my invoice and have asked Amazon to either reimburse the full amount or replace the missing units, but so far no resolution.

I’m barely earning £1 per unit, and this kind of loss is just not sustainable.

Why should sellers keep taking the hit for warehouse negligence?

Has anyone else faced this situation? How did you get it resolved? Would appreciate any insights or support.

Thanks,

Faseeh