How Much Is Amazon Stranded Inventory Costing Your Business?

Amazon stranded inventory is stock sitting in FBA warehouses that customers cannot buy.

The units exist, but they are not linked to an active listing. That means zero sales, ongoing storage fees, and capital locked up in products going nowhere.

Stranded inventory happens more often than most sellers realize. A listing error, a policy violation, or a missing product detail can disconnect your stock from your storefront without warning. The longer it sits, the more it costs.

This guide explains what causes Amazon stranded inventory, how to find and fix it, and how to prevent it from draining your profits.

What is Amazon stranded inventory costing your business?

Amazon stranded inventory actively drains your business from multiple angles while generating zero revenue in return.

Direct financial losses

• Monthly storage fees accumulate whether the inventory can sell or not
• Peak season fees from October through December increase costs significantly
• Aged Amazon inventory surcharges apply to units stranded beyond 180 days
• Capital stays locked in products you cannot move, limiting ecommerce cash flow

Lost sales and ranking damage

• Inactive listings mean zero visibility and zero conversions
• Every missed sale during the stranded period is revenue you cannot recover
• Amazon rewards sales velocity with better search placement, so downtime hurts future rankings
• Reactivated listings often start over in search results, losing months of momentum

Operational time drain

• Identifying the root cause requires digging through reports and notifications
• Fixing issues may involve updating listings, submitting appeals, or contacting Seller Support
• For sellers with large catalogs, Amazon stranded inventory becomes a recurring time sink

The real cost of Amazon stranded inventory (with examples)

The true impact of Amazon stranded inventory becomes clear when you run the numbers. Here is how costs accumulate across different scenarios.

Example 1: Small-scale stranding

A seller has 50 units of a product stranded due to a listing error. The item measures 1 cubic foot and sits in standard storage.

• Monthly storage fee: $0.87 per cubic foot = $43.50 per month
• Units stranded for 60 days before discovery = $87 in storage fees
• Average selling price: $25 with 30% margin = $7.50 profit per unit
• Lost sales over 60 days (assuming 1 unit per day): 60 units × $7.50 = $450 in lost profit

Total cost: $537 for one overlooked SKU

Example 2: Peak season stranding

A seller has 200 units stranded in November due to a category compliance issue.

• Peak season storage fee: $2.40 per cubic foot = $480 per month
• Units stranded for 30 days during prime selling season = $480 in storage fees
• Average order volume during Q4: 10 units per day × 30 days = 300 missed sales
• Profit per unit: $12 = $3,600 in lost profit

Total cost: $4,080 during your highest revenue month

Example 3: Aged inventory penalties

A seller does not notice 100 units stranded for 270 days.

• Monthly storage fees over 9 months: approximately $390
• Aged inventory surcharge (271+ days): $6.90 per cubic foot or $0.15 per unit, whichever is greater
• Additional surcharge: $690+
• Lost sales over 9 months at 15 units per month: 135 × $8 profit = $1,080

Total cost: $2,160+ before disposal or removal fees

Hidden costs beyond the numbers

• Ranking loss that takes weeks or months to rebuild
• Negative customer experience if listings flicker on and off
• Staff hours spent investigating and resolving each case
• Opportunity cost of working capital tied up in unsellable stock

Suggested read: Amazon Reporting Tools: Guide to Choosing for Your Needs

How Amazon stranded inventory happens and how to avoid it

Most stranded inventory is preventable if you know the triggers and set up the right habits.

Top causes and prevention tips:

Pricing errors (min/max price rules)

Scenario: You update prices in QuickBooks, but the sync to Amazon fails. By the next day, Amazon flags a price mismatch and strands 80 units.

Prevention: Set weekly audits for price rules and confirm all fields before bulk uploads. Use real-time sync tools to keep pricing consistent.

Listing suspensions (compliance, incomplete info)

Scenario: A product is missing required information or documentation. Amazon suspends the listing, leaving inventory unsellable.

Prevention: Review all listings for completeness before sending inventory. Monitor for listing alerts daily and resolve issues immediately.

Restricted ASINs

Scenario: Amazon restricts an ASIN due to policy changes or category requirements. Inventory for that ASIN becomes stranded overnight.

Prevention: Stay updated on category policies and check ASIN status before restocking.

Bulk upload mistakes

Scenario: You use a bulk upload template to update listings but accidentally populate the quantity column, converting FBA listings to merchant-fulfilled. Inventory is orphaned in the warehouse.

Prevention: Double-check bulk upload files and avoid unnecessary changes to fulfillment channels.

Data sync errors between systems

Scenario: Inventory sells on another channel, but the sync to Amazon is delayed. Amazon’s records become inaccurate, and units are stranded.

Prevention: Use real-time inventory sync and set up alerts for sync failures.

Even with good habits, issues can slip through, so here is how to find and fix Amazon stranded inventory fast.

Suggested read: Inventory Management Statistics and Trends

How to find and fix stranded inventory in Amazon Seller Central

Quick action is critical. Amazon will dispose of stranded inventory after 30 days, so regular checks are non-negotiable.

Step-by-step:

1. Run the Stranded Inventory Report

• Go to Seller Central > Inventory > Manage Inventory
• Click “Fix Stranded Inventory” at the top of the page

2. Interpret error messages

• Review the reason for each stranded SKU (e.g., pricing error, missing info, restricted ASIN)
• Take action:
  • Relist or edit the product to resolve the error
  • Remove inventory if the issue cannot be fixed
  • Contact Amazon support for unresolved cases

Manual checks work for small catalogs, but as you scale, consider automating alerts. High-volume sellers often automate alerts to catch issues before the 30-day window closes.

Manual fixes work, but Amazon’s automation settings can make or break your outcomes. Here is what to know.

Protect your inventory from costly defaults: Amazon automation settings

Amazon’s default automation settings can cost you. Customise your preferences to stay in control.

By default, Amazon will dispose of stranded inventory after 30 days unless you change this setting.

How to adjust automation settings

• Go to Seller Central > Settings > Fulfillment by Amazon > Automated Fulfillable Inventory Settings
• Choose your preferred action: “Dispose” or “Return” unsellable inventory
• Save your changes

Best practices

• Schedule regular reviews of automation settings
• Set reminders to check reports and adjust as your business needs change

Beyond Amazon’s built-in tools, some sellers use inventory dashboards that flag orphaned SKUs in real time, especially valuable for multichannel operations.

As your business grows, manual checks and settings reviews become harder to manage. Here is when to automate prevention.

Suggested read: Large Amazon Seller’s Guide to Expanding Product Lines

When manual prevention fails: Scaling with automation

Manual audits cannot keep up with growth. Automation and real-time sync prevent costly mistakes at scale.

Signs you have outgrown manual prevention:

• Spending more than two hours weekly on inventory reconciliation
• Adding 20 or more new SKUs monthly
• Expanding to new channels or warehouses
• Experiencing frequent listing changes or errors

Benefits of inventory management automation:

• Real-time alerts for listing or sync errors
• Cross-channel inventory sync to prevent mismatches
• Fewer manual errors and less time spent on routine checks

Webgility automates inventory sync and reconciliation across channels, helping sellers prevent mismatches that can trigger Amazon stranded inventory.

Ready to take action? Here is your 30-day audit and prevention plan.

Suggested read: Inventory Management in Ecommerce: How It Saves Money

30-day action plan and audit checklist for Amazon sellers

Turn knowledge into action. Use this checklist to audit, resolve, and prevent Amazon stranded inventory over the next 30 days.

Checklist:

1. Run the Stranded Inventory Report in Seller Central.
2. Calculate potential removal and storage fees for each stranded SKU.
3. Identify the root cause for each stranded item.
4. Take action: relist, edit, remove, or contact support as needed.
5. Review and adjust your automation settings.
6. Schedule weekly (or automated) checks going forward.

As your business scales, syncing inventory and accounting data automatically can transform a weekly headache into a background process, freeing up time and protecting profits.

Webgility connects your Amazon account to your accounting software and syncs inventory in real time across all your sales channels. When stock moves, your records update automatically.

You gain visibility into inventory performance, costs, and profitability without manual reconciliation.

The Wine RayZyn Co. struggled with errors from manual data entry and disconnected systems across channels like Amazon and their ecommerce store.

After implementing Webgility, the team was able to automatically sync inventory and sales across all their marketplaces and QuickBooks.

This eliminated human errors, gave them clear visibility into key performance data from a single dashboard, and helped them make faster, smarter decisions.

Schedule a demo with Webgility today.

Frequently asked questions (FAQs)

What is the fastest way to identify stranded inventory in my Amazon account?

Use the Stranded Inventory Report in Seller Central. Go to Inventory > Manage Inventory and click “Fix Stranded Inventory” to see affected SKUs and reasons.

How do removal fees for stranded inventory work?

If inventory remains stranded for over 30 days, Amazon will automatically remove or dispose of it and charge you a removal fee per unit, based on size and weight.

Can automation really prevent stranded inventory issues?

Automation tools can alert you to listing or sync errors in real time and keep inventory data consistent, but regular manual checks are still recommended.

What happens to my IPI score if I ignore stranded inventory?

Stranded inventory lowers your IPI score, which can trigger storage limits and restock restrictions, restricting your ability to grow on Amazon.