Amazon Losing Inventory is a CASH FLOW BOOST for FBA Sellers

Yeah, they lose stuff.
Maybe they eventually find it.
But in the meantime, they reimburse, and they only deduct their referral fee, not any fulfillment fee.
So they have unsold inventory, which cost me “x” but they reimbursed at x * 5, minus their sales commission.

And that’s an intererest-free loan, my boys.

A story from days gone by, when men wore Hickey-Freeman suits, and drove DeLoreans, and computers were still the size of several refrigerators…
We’d go to lunch often in my company, as we were a small start-up, funded by venture capital. One was well-advised to go to lunch, as we worked long hours, so dinner might not happen until after midnight.
Everyone would throw cash in the middle of the table to pay for their meal and tip, and I would gather up the cash, and put the whole tab on my Amex card.
After a few times of this, the CEO asked “Why do you do that?” I just smiled, and said “Ask him”, pointing to the CFO, and finance guy. The finance guy said, “He’s getting free money. He pays the lunch tab, pays his Amex bill on time, so no interest, and he gets the use of $200 or so twice a week, or $1600 per month. That’s just over $19K a year in additional cash he has, and that’s a nice buffer against all sorts of unexpected things.”

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It’s more like they lose it, refuse to reimburse you, and you get dicked out of your inventory. They might eventually find it and sell it under “Amazon.com” with no compensation to you.

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Even assuming that Amazon reimburses me the actual value of my goods (hah… haha… HAHAHAHAHAHA) it would be my cost, not the sale value, so this still does nothing for me. I send things in to FBA to sell them at a profit so I can pay bills, feed my family, etc. Amazon giving me back the money I spent on the items does not make me any profit, and I’m still out the cost of shipping the items to Amazon, the time spent prepping and shipping… This is a money losing scenario in which I am not interested in participating.

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Actually they’re SUPPOSED to reimburse you the selling price less fees. And this is what they did years ago. Like 5 years ago I’ve opened cases when they lost 100s of units and I was reimbursed around the same amount I would’ve gotten had I sold the products.

But I’ve been hearing lately that they been rejecting reimbursement requests for one reason or another.

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If you are the only seller and you maintained a price for an extended time, but if someone killed the price before or during your reimbursement you will not be getting what you wanted to sell it at back. There are many factors that go into reimbursements, and it doesn’t mean they won’t pull back that money when they find your items. Just like a casino, the house always wins.

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I don’t know anything about this. I get reimbursed pennies on the dollar of what I spent on the items, much less the sale price.

Nope, they are supposed to reimburse you what you would have received from the sale. It’s been like this for a while now. You can look up the reimbursement policy but it was changed. The actual wording of the policy is very vague (on purpose I’m sure) but you are correct, I get the same reimbursement as I would get as if it sold.

Good Luck,

TJB

VTR is replying… :hushed:

Just got one yesterday that was spot on sale price minus fees.
Untitled
Sale fee+FBA fees puts this at exactly 94$
image

It’s basic math, we have well over a million units moved through FBA over the ~decade and its just simple math that comes out to less than an employee lunch with beer over that time. It also helps having an employee with an addiction to Excel and has a OCD issue.

Now receiving problems… I can see you assertion somewhat, but not lost inventory.

What you don’t get back is the return processing fee for a lost return, or your inbound shipping costs. But @packetfire is correct, as our cost on this item is ~$70 but YMMV depending on how heavy your logistics costs are and margins.

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hmph

I’ve had lunches with a few who did just that. Not for your reason. Just declaring something like “I didn’t have time to go to the bank.”

In those instances they truly got a free lunch, and made a little profit to boot.

Because they kept all tip money, basically just stiffed the server (letting a miniscule tip remain).

I’ll take your word for it that’s not your story.

Of course that’s ancient history. Over the years, fewer paid with cash, and then along came covid.

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Don’t forget about the potential lead time to get those “lost” units back to you and then FBA.

As far as reimbursements go, the 2 times we were reimbursed for lost inventory, we did get back pretty much what we would have if we had sold the items. 1 of the 2 times we actually got back more.

Keep in mind that was a couple years ago. I’m sure Amazon has figured out a way to trim down what they give back when they screw up.

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As opposed to studying on how to screw up less often.

Yup, that’s the Amazon way.

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This is also not true, it’s supposed to be based off YOUR entered in FBA price. I’ve had my price reimbursed even if it’s higher than someone else’s.

Again, that was years ago, they may have changed things to favor Amazon more since then

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I don’t know where you got that information but I can tell you for me it is not that way unless you are the only seller who has maintained a price.
fba1
That would be a reimbursement of $30.25


What I received
fba3

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Receiving my listed price was around 5 years ago. As I’ve said, they’ve most likely made adjustments since then to ■■■■ over sellers more.

Seems like they’re using the lowest price of those 4 calculations to give you your reimbursement now.

Wow, you don’t do that - certainly not to the waitresses who will be serving you lunch again soon!
I would pay my fair share in, and certainly add to the tip - I would never think of cheating, as everyone at the table could do math in their head.

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