As an Amazon FBA seller, nothing is more frustrating than meticulously preparing a shipment, sending it off, and then watching your Inventory Management page report that some units were “Missing from Inbound.”
It happens frequently, yet many sellers view it as a minor, unavoidable headache. The reality, however, is that missing inbound inventory—and Amazon’s specific Amazon reimbursement policy—is a silent, continuous drain that significantly impacts your business’s bottom line.
Let’s unpack why this occurs, the true cost of the damage, and why “source cost” reimbursement is far from enough.
What are “Missing Inbound Services” and Why Do They Happen?
“Missing Inbound” refers to the discrepancy between the quantity of products you shipped and the quantity Amazon officially confirmed as received into their fulfillment center (FC) inventory. Your shipment status may show as “Delivered,” yet a portion of the units remains unaccounted for.
While the causes can sometimes be on the seller’s end (like poor labeling or inconsistent packaging), the vast majority of these discrepancies occur after the carrier delivers the boxes to the FC dock.
Common Causes of Missing Inbound Inventory:
- Internal Warehouse Errors: The most frequent cause. During the fast-paced and high-volume receiving process, units are easily misplaced, miscounted, or incorrectly scanned.
- Misdirected Inventory: Units may be scanned in at the initial FC and then “disappear” during internal transfers to other warehouses.
- Incorrect Labeling by Amazon: Occasionally, Amazon’s team misapplies ASIN or FNSKU stickers, causing your units to be filed under the wrong product or a different seller’s inventory.
- Unrecorded Damage: A unit may be damaged during the receiving process and quietly set aside.
- Proof of Delivery (POD) vs. Final Count: Amazon typically favors their own final count, leading to disputes that can block your future Amazon FBA reimbursement claims.
The True Damage: It’s Not Just the Cost of Goods
The financial damage caused by missing inbound inventory is often underestimated because sellers only factor in the physical loss of the product. The actual damage involves three distinct financial losses:
1. Direct Cost of Goods (COG) Loss
This is the most obvious loss: the money you spent to manufacture or purchase the missing unit.
2. Lost Profit and Revenue Opportunity
This is the hidden cost. Every missing unit is a lost opportunity to make a sale, which directly impacts your revenue targets and cash flow.
3. Absorbed Operational & Shipping Costs
Amazon’s reimbursement only covers the unit itself, forcing you to absorb the costs incurred to get that unit into the FBA system: Shipping & Freight Fees, Customs & Duties, and Prep Costs.
In short, you spend money to prepare, ship, and pay duties on a product, only to have it disappear, receive only the source cost back, and still pay for the expenses that made it an FBA-ready item.
Why Amazon’s “Source Cost” Reimbursement is a Problem
Amazon’s FBA inventory reimbursement policy for units lost before a customer order is typically based on the item’s Sourcing Cost, not its retail price minus fees.
While Amazon’s intention is to cover your investment, this policy creates a significant gap for sellers:
For items lost pre-fulfillment (like missing inbound), Amazon reimburses the cost you paid for the product. They explicitly exclude costs like shipping, handling, customs, and lost profit.
| Scenario | What You Lost (Total) | What Amazon Reimbursement Covers |
| Cost of Goods (COG) | $10.00 | $10.00 |
| Shipping/Prep Costs | $2.00 | $0.00 |
| Lost Profit | $8.00 | $0.00 |
| TOTAL LOSS PER UNIT | $20.00 | $10.00 (You absorb 50% of the true loss) |
💡 What Can Sellers Do? Maximize Your Amazon Reimbursement
The key to protecting your business is proactive auditing and documentation—especially given that Amazon’s automated systems often miss claims.
- Maintain Flawless Records: Keep every commercial invoice and detailed packing slip for every shipment you send to FBA to support your Amazon reimbursement cases.
- Monitor Discrepancies: Use your Seller Central reports to track when units are checked in and when they mysteriously disappear.
- Provide Sourcing Cost: Actively submit your true sourcing cost in Seller Central via the Manage Your Sourcing Cost page.
- Audit Manually or Automatically: Since Amazon’s automated reimbursement system often misses missing inbound claims, a rigorous manual or automated third-party audit is necessary to identify every discrepancy and file the necessary case within Amazon’s strict deadlines.
Don’t let missing inbound inventory be the silent erosion of your profits. By understanding the true financial impact and adopting a robust audit strategy, you can reclaim the revenue you are rightfully owed through a successful Amazon reimbursement process.