Sellers pay the price when Amazon finds lost inventory

TikTok might finally have a new owner, at least according to Donald Trump.

After months of delays, extensions, and trade drama, Trump teased that a deal is in the works, with “a group of very wealthy people” ready to buy the app. But with TikTok’s September deadline looming and tensions with China still high, the clock is ticking.

• Amazon’s lost-and-found is draining your profits 💸
• Scale fast with Walmart’s full toolkit 🛒
• Rethink ads before Prime Day torches your budget 🔥
• No-fluff guide to protecting Amazon margins 📊

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BLACK MARKET

Picture this: you finally get the dreaded notification that your lost FBA inventory has been found. Relief, right? Well… not exactly—for some sellers.

eCommerceBytes revealed a frustrating truth: Amazon’s “found” inventory often triggers reverse reimbursements, disposal fees, and zero sales.

🏷️ Cost of “found” inventory

Here’s the brutal cycle sellers say they’re caught in:

• The disappearance: Amazon misplaces inventory during FBA intake or transfers.
• The paperwork grind: After weeks (or months) of documentation, a partial reimbursement is issued.
• The surprise twist: Months later, Amazon suddenly “finds” the inventory.
• The flawed assumption: The found units are flagged as sellable, regardless of expiration or seasonality.
• The clawback: Amazon reverses the reimbursement.
• The final insult: Sellers are charged removal or disposal fees to clear unsellable stock.

😖Just like what happened to these to stand outs:

• A seller lost a batch of chocolate candy sent in September and got it “found” in February—just days from expiration. Amazon reversed the payout and demanded disposal fees, even though the candy couldn’t be sold.
• Another seller received a nearly $1,100 reversal after Amazon located lost stock they hadn’t sold in months. By the time it resurfaced, the seller had moved on—and their wallet paid the price.

🫵 Amazon finds it, you fund it

Once Amazon marks inventory as “sellable,” it’s back on you—expired, seasonal, or not. And with March 2025’s shift to reimburse at manufacturing cost, sellers are losing more upfront and again when refunds get reversed. 

No exceptions for perishables. No relief for timing. Just the bill—twice.

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AMAZON NEWS

Fix your ad strategy before Prime Day burns your budget

With Prime Day just a few days away, sellers are racing to secure visibility—but many are unknowingly overspending on Amazon PPC.

According to intelliRANK, inefficient campaigns are costing sellers up to 40% more than necessary. Here’s what their analysis found:

• Costly keywords with low return: Many campaigns are funneling spend into terms that rarely convert but still rack up charges.
• Missed high-intent traffic: Competitors are capturing buyers through smarter keyword targeting—especially those primed to purchase.
• Bidding blind spots: Sellers are underbidding (or overbidding) in key placements, reducing visibility where it matters most.
• Campaigns built on shaky structures: Underperforming account setups are limiting how and where ads are shown.

⏰ Why the clock's ticking

Click prices are already rising, and with Prime Day just days away, waiting could cost you sales. Sellers who don’t audit their PPC before July 8 risk missing five or six figures in potential revenue.

CASH CORNER

The seller's guide to Amazon profit margins

The sales surge is great. The fees? Not so much. If you don’t know what each sale is really earning you, Prime Day could feel more like break-even day. 

TechRepublic can help you fix that.

🧮 Estimate fees

Before you hit “list,” run this quick profit check:

• Set your target price. Start with your sale price, including shipping if you cover it.
• Apply the referral fee. Most categories take 8–15% off the top.
• Add FBA fulfillment costs. Based on size and weight—apparel and oversized cost more. 💸
• Include storage charges. Especially during Q4 when monthly rates spike.
• Calculate your margin. Subtract all fees from your sale price to get your per-unit profit.

Too much math? Use Amazon’s profitability calculator to speed it up.

🔧 Shrink seller fees

Use these tactics to stay lean:

• Shrink your packaging. Lighter and smaller drops your fulfillment and storage tier.
• Clear out slow stock. Avoid aged inventory surcharges with early removals or flash sales.
• Bundle SKUs. Increase AOV and reduce per-item costs. 📦
• Use the incentives. FBA New Selection and New Seller Incentives can ease early fees.
• Audit often. What worked at 100 units/month might not at 1,000. Keep recalibrating.

Prime Day is a chance to cash in, unless your fees eat the profits first. Know your numbers, trim the waste, and don’t let Amazon’s cut turn your best day into a wash. 💧