Amazon Lost Inventory Reimbursement Fees- Warning

Hi Everyone,

I wanted to make this post as a warning to new sellers as well as those selling the past few years. I know there has been talk about return fees but I don’t believe many realize how bad they truly have gotten. For a small business, these fees run the risk of putting someone completely out of business.

As a bit of background, my company has been selling on Amazon for 7 years. We own a brand and were recruited directly by Amazon.

In the first 3 years of selling: Amazon lost 0% of our inventory

Year 4 of selling: Amazon lost 1.5% of our inventory

Year 5 of selling: Amazon lost 2.8% of our inventory

Year 6 going into year 7 of selling: Amazon lost 8.2% of our inventory.

For the most part prior to this year, they refunded on cost more or less. When going into the sixth year we did notice it took months to sometimes get the money back though. This caused us to have to hire another employee just to follow-up on Amazon cases.

Recently(last six weeks) they lost another shipment.

This particular lost item retails for $120. The cost to bring this item into the USA is $68, as shown by my invoice provided to amazon. On top of this, we pay clsoe to an additional $20 in shipping and customs clearance, also shown by Department of homeland seurity invocies and paperwork.

Guess how much amazon reimbursed us for the items lost? $21/pc. Be vigilant everyone.