Where Did the Stock Go?
In a perfect world, if you ship 1,000 units to a fulfillment center, 1,000 units are checked in, stored, and sold to customers. In the real world of e-commerce logistics, units get lost, damaged in transit, or misplaced on warehouse shelves.
This is known as Inventory Leakage, and it is one of the biggest blind spots for scaling brands.
The Two Major Types of Inventory Leaks
- Unreimbursed Lost/Damaged Units: Marketplaces owe you money if they lose or damage your inventory while it is in their facility. However, they do not always reimburse you automatically. You generally have a strict time window (often up to 18 months) to reconcile your shipment reports against your physical stock and file a claim. If you miss the window, that cash is gone forever.
- Stranded Inventory: These are units sitting in a fulfillment center that are not linked to an active listing (due to listing errors, policy violations, or backend glitches). They cannot be bought by customers, but the marketplace is absolutely still charging you monthly storage fees for them.
Reconciling the Gaps
You cannot manage what you do not measure. Plugging inventory leaks requires matching your inbound shipment data with your financial payout reports. Stop guessing and start reconciling your shipments systematically to ensure your physical stock matches your financial reality.
Stop paying storage fees for inventory you can’t sell.