How FBA Sellers Forced Amazon to Reimburse Lost Inventory Using Proof Other Sellers Overlooked

For Fulfillment by Amazon (FBA) sellers, maintaining tight control over inventory is essential not only for profitability but also for survival on the platform. Unfortunately, errors in Amazon’s vast logistics network can lead to inventory being lost, damaged, or incorrectly recorded — often without sellers even realizing it. Some persistent sellers, however, have managed to recover these losses by uncovering overlooked proof and forcing Amazon to issue reimbursements. Their methods are now guiding a new standard of vigilance and record-keeping for the broader FBA community.

TL;DR

Many FBA sellers unknowingly lose money due to Amazon’s inventory mismanagement but never challenge the losses. A subset of methodical sellers have managed to collect and present detailed proof of inventory discrepancies, using reports and timelines that most others overlook. Their efforts have forced Amazon to honor reimbursements. Learning to track and audit these subtle records could reclaim thousands for sellers currently leaving money on the table.

The Problem: Disappearing Inventory in FBA Warehouses

Lost or unaccounted-for inventory is a documented concern in Amazon’s FBA system. When a product enters Amazon’s warehouses, sellers assume it’s in safe hands. But due to shipping damages, mis-scanning, shelving errors, or internal losses, some units go unrecorded or show up as “missing” in Amazon’s system.

Amazon does have an internal process for identifying and reimbursing such losses. However, these automated checks often miss cases, especially when the data is borderline or the seller hasn’t proactively raised an issue. This has led to millions of dollars in unreimbursed goods across the seller ecosystem.

What Most Sellers Overlook

Typical sellers rely heavily on automated reports provided in Seller Central and trust Amazon’s reimbursement mechanism to catch discrepancies. Unfortunately, these systems only catch a portion of actual losses. Here’s what is often missed:

• Inbound shipment cross-checks: If Amazon marks a shipment as “received” but some units are missing, the burden falls on the seller to identify and report the discrepancy within a narrow time window.
• Old inventory loss logs: Amazon has filing time limits – often 9 to 18 months – after which it will refuse to investigate claims, even if the data supports compensation.
• Misidentified SKUs: Errors in labeling can lead to items being scanned as entirely different products — making it appear like the correct SKU was received.

By the time many sellers catch the problem, it’s too late to take action.

How Diligent Sellers Forced Amazon to Pay Up

A group of savvy Amazon sellers, many with backgrounds in auditing or IT systems, began systematically analyzing discrepancies between their shipping records, Amazon’s receiving reports, and inventory adjustments. Their findings led to concrete and provable evidence of lost or mishandled products that Amazon had never flagged.

Here are the tactics they used:

1. Matching Shipment Logs with FBA Receiving Reports

These sellers began storing and reviewing their shipping logs, including tracking numbers, carrier receipts, and internal packing slips. Then, upon comparing those with Amazon’s FBA Receiving Report, they discovered mismatches in unit counts that Amazon never corrected.

2. Leveraging Inventory Adjustment Reports

Amazon provides a downloadable report titled “Inventory Adjustments,” which records warehouse events such as product damages and removals. Within these logs, diligent sellers pinpointed instances where items went missing, were disposed of, or were claimed to be damaged without explanation.

By tagging these events to specific SKUs and shipments, sellers created timelines demonstrating Amazon’s fault in the loss, and using the Case Log function in Seller Central, they submitted detailed reimbursement requests. Many were approved after only minimal pushback — once the data was undeniable.

3. Combining Reports for Cross-Month Analysis

Amazon reports are segmented by weeks or months, making long-term analysis difficult. Dedicated sellers combined datasets into custom Excel spreadsheets featuring:

• Date of send-in vs. expected receipt
• Unit cost per ASIN
• Lost/missing/damaged event logs

When presented in a unified document, it became clear there were patterns of uncorrected inventory losses. Submissions leveraging these deep audits led to higher refund rates.

Proving Loss with Time-Stamped Evidence

Perhaps the most impactful tool sellers used was time-stamped document trails. Amazon will rarely argue when the following are included in a claim:

• Carrier confirmation that the full shipment was delivered
• Warehouse check-in logs showing fewer items received
• Amazon’s own damaged/lost inventory logs without follow-up action

These three data points became the “evidence triangle” used in successful reimbursements. In correspondence with Seller Support, presenting all three made it extraordinarily difficult for Amazon to deny responsibility.

Why Most Sellers Fail to Get Reimbursed

According to some audited communities of FBA sellers, over 70% don’t audit their accounts beyond downloading standard monthly reports. The number one reason? Lack of time and knowledge of what to look for.

Amazon’s vast data offerings seem daunting. Without knowing which reports to combine, even smart sellers can miss inconsistencies. Automated tools and services exist, but some sellers hesitate to trust external software or don’t want to pay subscription fees.

Mounting Pressure on Amazon to Improve Transparency

As more sellers rally around these evidence-based reimbursement methods, Amazon is under increasing pressure to enhance visibility into its warehouse systems. Some third-party organizations have begun lobbying for:

• Longer time frames for dispute filing
• Improved integration between inbound shipments and warehouse logs
• Immediate flagging of inventory count errors

There’s already anecdotal evidence that Amazon is updating its automated systems to be more responsive to these discrepancies. But for now, seller vigilance remains the most effective tool for protecting assets within FBA.

Conclusion: Reclaiming What’s Rightfully Yours

The sellers who succeeded in forcing Amazon to reimburse them didn’t wield special privileges — they just worked smarter. By scrutinizing data Amazon itself provides, they exercised a level of due diligence that most competitors ignore. As seller margins continue to tighten, letting inventory disappear without challenge is no longer an acceptable risk.

For today’s FBA operator, auditing is no longer a “nice to have” — it’s survival. If you’re not already tracking your shipments with third-party logs, cross-referencing product receipts, and saving every available report, it’s only a matter of time before invisible losses eat away at your bottom line.

Understanding these overlooked proofs and committing to consistent tracking can mean the difference between a growing business or a failing one. Auditing Amazon isn’t just possible — it’s essential.