How To Reconcile an Amazon FBA Inventory

Introduction.

Managing inventory is one of the most important parts of running a successful Amazon FBA business.

If you sell through Amazon’s Fulfillment by Amazon (FBA) program, you know how convenient it is to let Amazon handle storage, shipping, and returns. But with that convenience comes the challenge of keeping your inventory accurate.

Inventory reconciliation is the process of ensuring that what you think you have in stock matches what Amazon says you have.

It’s about spotting discrepancies, fixing errors, and making sure you’re not losing money due to misplaced, damaged, or unaccounted-for products.

If inventory reconciliation isn’t done regularly, it can lead to lost revenue, unsold products, and frustration. Let’s talk about how to reconcile your Amazon FBA inventory step-by-step and why it matters.

Why Reconciling Your Amazon FBA Inventory Matters

Here’s why it’s worth your time to stay on top of this:

Avoid Overcharges: Amazon may charge you for excess inventory storage, especially if they think you have more products than you do.
Catch Errors Quickly: Mistakes can happen—Amazon might lose items, returns might not be processed properly, or shipments could go missing. Regular checks let you identify and resolve these issues early.
Maintain Accurate Listings: Keeping your stock count accurate helps prevent selling something that isn’t available or running out of stock unexpectedly.
Request Reimbursements: When Amazon is at fault—like losing or damaging your inventory—you’re entitled to a reimbursement. But you need to catch these errors and file claims.
Improve Cash Flow: Knowing exactly what you have lets you make smarter restocking decisions and avoid tying up money in unsellable inventory.

How Do I Reconcile Amazon FBA Inventory?

Here’s how you can reconcile your inventory without feeling overwhelmed:

1. Understand Amazon’s Inventory Reports

Amazon offers a variety of reports that help track your inventory. The most important ones are:

Inventory Adjustments Report: This shows changes in your inventory like damaged or lost items.
FBA Inventory Reconciliation Report: Summarizes discrepancies between what was received, stored, and shipped.
Returns Report: Tracks customer returns and how they were processed.
Manage Inventory Dashboard: Displays your current inventory levels.

Access these reports through Seller Central by navigating to the Reports section and selecting the relevant report type.

2. Match Shipment Records with Amazon’s Data

Whenever you ship to Amazon, keep a record of what you send. After the shipment is processed, compare your records to what Amazon says they received. If there’s a mismatch, file a claim through the FBA Shipment Reconciliation Tool.

3. Track Inventory Adjustments

Amazon regularly adjusts inventory for reasons like:

Damaged items
Items marked as “unsellable”
Lost items
Items found during audits

Check the Inventory Adjustments Report to identify these changes. If you notice something that doesn’t add up, follow up with Amazon.

4. Monitor Returns

Returns are a major source of discrepancies. A customer might return an item, but it doesn’t always make its way back into your inventory. Use the Returns Report to check if all returned items were properly accounted for.

5. File Claims for Reimbursement

If Amazon loses or damages your inventory, they owe you. But they won’t automatically reimburse you. You’ll need to submit a claim with proof, such as shipment records or product invoices.

To file a claim:

Go to Help in Seller Central.
Select Fulfillment by Amazon Issues.
Provide details and upload supporting documents.

6. Regularly Conduct Full Reconciliations

Make it a habit to reconcile your inventory every month. This ensures you’re catching issues quickly and not leaving money on the table.

Common Issues and How to Solve Them

Lost or Damaged Inventory

If Amazon loses or damages your items, use the Inventory Reconciliation Report to identify the issue. Submit a claim for reimbursement with details of the lost or damaged goods.

Incorrect Returns Processing

Sometimes, returns are marked as processed, but the item never makes it back to your inventory. Double-check the Returns Reports and flag any inconsistencies.

Shipment Discrepancies

If Amazon claims they received fewer items than you sent, use the FBA Shipment Reconciliation Tool to resolve the issue. Provide proof of the shipment, like tracking numbers and invoices.

FAQs

How often should I reconcile my FBA inventory?

Once a month is a good starting point. However, if you have a high volume of sales or frequent discrepancies, you might want to do it more often.

What happens if I don’t reconcile my inventory?

You risk losing money due to unclaimed reimbursements, overcharges, or unsold stock. It can also hurt your seller performance if your listings show inaccurate inventory levels.