They will see your old price and new price and also they will check your competitor’s price to make reimbursement or sometimes they ask for an invoice to check the cost price for reimbursement.
This depends on your history of your price on which you have been selling in the market and in some cases they might ask you for the invoice which can tell the cost of the product. Then, Amazon reimburse you accordingly.
When Amazon loses a unit of your product, they typically reimburse you for the lost item based on the average selling price (ASP) of the product over the past 30 days. The reimbursement amount is calculated as follows:
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