How Amazon Sellers Lose Thousands (and How To Fix It)

TL;DR

• Amazon often overcharges FBA fees due to incorrect product size/weight, costing sellers extra per unit.

• Lost or damaged inventory isn’t always reimbursed unless sellers manually track and file claims.

• High storage fees drain profits if inventory sits too long; long-term storage fees can be avoided.

• Stranded or suppressed listings stop sales while storage fees keep accumulating.

• Improper labeling and prep lead to delays rejected shipments, and additional Amazon service fees.

• Refunzo helps sellers recover lost money from incorrect fees, missing reimbursements, and listing issues.

Selling on Amazon isn’t just about picking the right products and setting competitive prices—it’s also about not losing money on avoidable mistakes. Every day, sellers unknowingly overpay in fees, lose inventory, or let profitable listings go inactive, all while Amazon keeps charging them.

From incorrect FBA fees to stranded inventory, these hidden errors can drain thousands of dollars from your bottom line without you even noticing. The worst part? Amazon won’t always tell you when something goes wrong—it’s up to you to catch and fix these costly issues.

But here’s the good news: most of these losses are completely avoidable. If you know where to look, you can stop Amazon from eating into your profits and even recover money Amazon owes you.

Let’s break down the biggest ways Amazon sellers lose money—and, more importantly, how you can fix it.

Quick guide:

• How sellers unknowingly lose money

• How to recover lost profits

• How can Refunzo help

How sellers unknowingly lose money

Many Amazon sellers focus on increasing sales but don’t realize how much money they’re losing behind the scenes. Amazon automatically deducts various fees, storage costs, and fulfillment charges, and if you’re not actively monitoring them, you might be losing thousands of dollars without even knowing it.

Here’s why:

1. Amazon’s automated system isn’t always accurate

Amazon handles millions of transactions daily, and errors happen more often than you’d think. From incorrect FBA fee calculations to lost inventory, Amazon’s system isn’t perfect, but they won’t proactively alert you if you’ve been overcharged. It’s your responsibility to check.

2. Many sellers don’t track lost or damaged inventory

Amazon’s warehouses are massive, and inventory gets misplaced or damaged all the time. If you don’t regularly check your reports, you could be paying for stock that’s gone missing or never even made it to a customer. Amazon offers reimbursements, but only if you request them—otherwise, that money stays in Amazon’s pocket.

3. Storage fees pile up unnoticed

Slow-moving inventory doesn’t just take up space—it costs you money. Amazon charges monthly storage fees, and if your products sit too long, long-term storage fees can skyrocket. Many sellers don’t realize how much they’re paying in storage until their profit margins shrink significantly.

4. Listing problems stop sales, but fees keep adding up

If your product listing gets stranded or suppressed, it disappears from search results, meaning no one can buy it. But here’s the catch—your inventory is still sitting in Amazon’s warehouse, accumulating storage fees, while you’re unaware that sales have stopped.

5. Unnecessary FBA service fees eat into profits

Amazon offers services like labeling, repackaging, and removals—but they charge extra for them. If you don’t properly prepare and label your inventory before sending it, Amazon will do it for you at a much higher cost per unit, reducing your overall profit.

Why this is a big problem

All these issues chip away at your margins, making it harder to stay profitable—even if your sales are strong. The problem is that these losses aren’t obvious unless you actively track them. Many sellers assume Amazon’s system is flawless and don’t realize how much money is slipping away each month.

How to stop losing money unknowingly

• Regularly audit your FBA fees and reimbursements. Don’t assume Amazon’s calculations are always correct.

• Track your inventory reports. Make sure lost or damaged items are accounted for and reimbursed.

• Monitor your storage fees. Identify slow-moving stock and take action before Amazon’s long-term fees kick in.

• Check your listings frequently. Ensure your products are active and visible, and fix any stranded listings immediately.

• Properly prep your inventory. Avoid unnecessary Amazon service fees by following FBA guidelines before sending stock.

By staying proactive and keeping an eye on where your money is going, you can stop Amazon from quietly eating into your profits and keep more of your hard-earned revenue.

How to recover lost profits

If you’ve been selling on Amazon for a while, there’s a good chance you’ve lost money without even realizing it. Overcharges, misplaced inventory, hidden fees, and unnoticed errors can add up to thousands of dollars. The good news? You can recover a large portion of these lost profits—if you take action.

Recovering lost profits isn’t just about making more sales—it’s about stopping unnecessary losses and reclaiming money Amazon already owes you. Here’s how you can do it:

1. Identify and dispute incorrect FBA fees

Amazon charges fulfillment fees based on your product’s size and weight. But what if Amazon’s system measures your product incorrectly? You could be overpaying for every single sale without realizing it.

How to check and fix it

• Go to Seller Central > Manage Inventory > Edit > More Details: Compare Amazon’s recorded dimensions with the actual measurements of your product.

• If Amazon’s numbers are wrong, request a remeasurement: Open a case with Seller Support and provide the correct dimensions. Amazon will review and adjust your fees if they find an error.

• Monitor fee updates regularly: Amazon sometimes changes product dimensions over time, leading to unexpected fee increases. Keep checking.

• Recovered profit: Avoids overpaying on every order, adding up to hundreds or thousands per year.

2. Claim reimbursements for lost or damaged inventory

Amazon is responsible for inventory stored in their warehouses, but items frequently get lost, damaged, or misplaced. If you don’t track these losses, Amazon might never reimburse you—even though they should.

How to check and fix it

• Go to Seller Central > Reports > Fulfillment > Inventory Adjustments: Look for products marked as “damaged” or “lost.”

• Check the Reimbursements Report: See if Amazon has refunded you for missing inventory. If not, file a claim.

• Track inbound shipments: When you send inventory to Amazon, make sure all units are received correctly. If some are missing, open a case within 9 months.

• Recovered profit: Prevents thousands of dollars in lost inventory costs over time.

3. Reduce unnecessary Amazon storage fees

Amazon’s storage fees seem small at first, but they pile up quickly—especially if your products sit in the warehouse for too long.

How to check and fix it: 

• Go to Seller Central > Reports > Fulfillment > Inventory Age: Identify slow-moving products that are at risk of long-term storage fees.

• Take action before fees increase: Run promotions, create bundles, or lower prices to clear old stock. Use Amazon’s FBA liquidation program to sell excess inventory at a discount instead of paying fees.

• Set up automatic removals: In FBA settings, enable automatic inventory removal to avoid long-term fees for unsold products.

• Recovered profit: Reduces storage costs and prevents long-term inventory losses.

4. Fix stranded and suppressed listings

If your listing is stranded or suppressed, it means your product is not available for sale—but you’re still paying storage fees. These invisible errors can cost you thousands in lost sales.

How to check and fix it

• Go to Seller Central > Manage Inventory > Fix Stranded Inventory: Find any listings that are inactive and relist them immediately.

• Check for suppressed listings: Go to Manage Inventory > Suppressed Listings and update missing details (images, descriptions, pricing, etc.).

• Monitor your listings daily: Set a reminder to check your inventory status so listings don’t stay stranded for long.

• Recovered profit: Prevents losses from unsellable inventory and maximizes your sales potential.

5. Avoid Amazon’s unnecessary service fees

Amazon offers optional services like labeling, prep, and removal, but these fees can be avoided with proper planning.

How to check and fix it

• Label products yourself: Amazon charges $0.30 per unit for labeling. If you’re shipping 1,000+ units, that’s $300 lost per batch.

• Package items correctly before shipping: Amazon charges extra for polybagging, bubble wrapping, and taping if your products aren’t prepped properly.

• Remove unsellable inventory before fees increase: Instead of letting inventory sit, request a removal order to avoid long-term storage fees.

• Recovered profit: Saves hundreds to thousands per shipment.

6. Use an Amazon seller reimbursement services to recover lost money

Even if you manually check for errors, Amazon’s system is complex and difficult to track. If you don’t have time to monitor every little fee or reimbursement, using an FBA refund service can help.

How to check and fix it

• Use a service like Refunzo to audit your account: Refunzo automatically finds and files claims for lost inventory, incorrect fees, and missing reimbursements.

• Track your Amazon statements for hidden charges: Sometimes, Amazon issues a partial reimbursement instead of a full refund. An Amazon FBA inventory reimbursements audit service makes sure you get 100% of what you’re owed.

• Recovered profit: Recover money you didn’t even know was missing, without extra effort.

How can Refunzo help

Amazon’s system isn’t perfect, and many sellers lose money due to incorrect FBA fees, lost inventory, hidden storage costs, and inactive listings. Refunzo helps recover these lost profits by automating fee audits, tracking reimbursements, and identifying listing issues—so you don’t have to. Instead of manually chasing Amazon for refunds, Refunzo does the work for you, ensuring you get back every dollar Amazon owes you without the hassle. Start recovering your lost profits today!