Sellers are reporting that the worst outcome for lost Amazon inventory is when it is found months later, resulting in a reversed reimbursement and the return of now-expired, unsellable products.
Lost FBA inventory can already cost a seller 1-3% of their annual revenue. Now, a new policy twist is making that problem even worse.
Sellers are reporting that Amazon is finding inventory lost months ago, reversing the reimbursement, and returning the items.
The catch? The products are now expired, and sellers are being charged fees to dispose of the very items Amazon lost.
Sellers Report Expired Returns After Lost Amazon Inventory Reappears
Amazon seller"Amazon 'loses' my FBA inventory, sells it in liquidation pallets, and now I'm forced to compete with my own brand being sold on eBay."
“Amazon sent me my expired product back”, according to Reddit user OkCounter6156, who shared that they sent products via FBA in November 2024 with an April 2025 expiration. The items were declared lost, and Amazon initially issued a reimbursement before reversing it nearly a year later and returning the expired goods.
The incident highlights how sellers may lose both the product value and reimbursement when inventory resurfaces too late to sell. Instead of relief, sellers often receive expired items they can no longer list and are forced to absorb additional disposal or removal costs.
Other sellers report similar experiences, with some claiming that entire batches of products have been returned months after expiration. One seller said that of 200 food items sent in, 10 were lost and later returned in unsellable condition, despite being shipped with ample shelf life.
These cases point to growing frustration among FBA sellers who say Amazon’s lost-and-found process offers little protection for perishable or seasonal goods. Many are now calling for clearer policies that address how long-lost inventory is handled once it becomes unsellable.
Found Inventory Adds Insult to Injury for Sellers
Many sellers have experienced this nightmare. On EcommerceBytes, Ina Steiner, wrote that in some cases, the worst outcome for lost FBA inventory is when Amazon finds it. This problem is intensified by Amazon’s recent change to its reimbursement policy.
Sellers report that what should be good news, Amazon locating lost items, becomes a financial loss. So much time has passed that the found inventory is expired, seasonal, or otherwise unsellable.
To make matters worse, sellers are then charged removal or disposal fees for these worthless items. One seller in February described the process as a complete loss of time, product, and money, made worse by Amazon’s increased removal charges.
Several recent cases highlight this problem:
- A seller’s seasonal chocolate candy was lost in September 2024.
- Amazon found the inventory in February 2025, at which point it was expired or within 30 days of expiring.
- Amazon reversed hundreds of dollars in reimbursements and insisted the seller pay to remove the unsellable goods.
Another seller in May reported a charge of $1,100 for a reversed reimbursement. The inventory had been lost for over five months, and the seller was no longer stocking the item.
This issue is complicated by Amazon’s policy update from the end of March. Amazon no longer reimburses sellers for the item’s potential sale price, but instead bases the reimbursement on the product’s manufacturing cost.
Sellers are met with difficult responses from support. An Amazon moderator told one seller that an investigation found the returned units were “sellable” according to the ledger, so no lost or expired inventory was recognized.
The seller of the seasonal candy noted this was the third or fourth time this had happened in just a few months. They questioned why Amazon does not have a specific policy for lost perishable or seasonal goods.
New Policy Shifts Reimbursement From Sale Price to Cost
Amazon implemented a significant change to its reimbursement valuation on March 31, 2025. This new policy fundamentally alters how sellers are compensated for items lost or damaged before a customer order.
The rule change was postponed from an initial date of March 10, 2025. Amazon stated the delay was to give sellers more time to use a new cost-management tool, acknowledging the complexity of the new system.
Under this new policy, reimbursements are now based on the product’s “manufacturing cost” or “sourcing cost.” This is a major shift from the previous method, which reimbursed sellers based on the item’s average selling price minus Amazon fees.
The former system compensated sellers for their lost potential revenue. The new policy, in contrast, only covers the seller’s initial cost to acquire the physical goods.
How Sellers Can Fight Back
For sellers caught in this situation, proactive documentation is key. In fact, an article on Sellerbites detailed the steps on what a seller who experienced dilemma can do.
The outlet suggests sellers must prove their timeline and the original state of their products. The recommended steps include:
- File a case immediately. Sellers should reference their original reimbursement ID and clearly state that the returned items are expired and unsellable.
- Prove your timeline. This includes providing the original shipment details and product expiration dates to show they were valid when first sent to FBA.
- Check the reimbursement amount. The article noted that Amazon pays based on the average selling price, not your cost.
- Track your reimbursements. These “lost and found” cases are reportedly more common than sellers may realize.
What To Do When Amazon Seller Support Falls Silent
Sellers are reporting significant challenges when Amazon loses large amounts of inventory. In this video our Amazon agency published on YouTube, I featured one seller noted a loss of 700 units and was met with automated responses from support.
The support cases stated that nothing could be done, as the inventory was not appearing in the ledger. This leaves sellers with major financial losses and no clear path for recovery.
For this situation, industry experts recommend using specialized third-party reimbursement services. These services exist to manage the complex process of reclaiming funds from Amazon.
This type of service is designed to claim back money for lost inventory and recover miscellaneous FBA fees that sellers are owed.
These agencies typically operate on a commission-only basis. This means the service is free to use, and the company is only paid a percentage of the money they successfully recover.
The primary benefit of using a dedicated service is their experience. They utilize many Standard Operating Procedures (SOPs) and a history of past cases to navigate the claims process.
The process of getting money back from Amazon is described as having many different aspects and is often too complex for most sellers. Using an experienced service is presented as the best bet to solve these types of problems.
Steven Pope"It's like loaning your inventory out to Amazon and getting paid nothing for it."
