Cross-border e-commerce sellers are confronting a troubling pattern: after painstakingly preparing inventory and shipping products to Amazon's Fulfillment by Amazon (FBA) warehouses, many find their merchandise unexpectedly classified as defective, rejected, or mysteriously disappearing. More disturbingly, some report Amazon's own products appearing under their listings after their inventory gets forcibly removed. These aren't isolated incidents but widespread concerns among the seller community.
I. Arbitrary "Defective" Classifications With No Recourse
Numerous sellers report massive quantities of their FBA shipments being labeled as defective without clear justification. One U.S. seller saw over 40% of a 1,000-unit shipment deemed defective, with appeals only worsening the situation. Another had 300 of 800 units classified as defective with no explanation beyond "remove them."
When sellers retrieve these "defective" items from third-party warehouses, they often find products undamaged with intact packaging. Yet Amazon's customer service maintains warehouse teams have final say, leaving sellers powerless. One UK seller's 22-unit shipment was flagged as defective, followed by 54 units in Europe - all later admitted to be a "logistics team mistake" after weeklong delays and seller-provided documentation.
II. Vanishing Inventory With Opaque Compensation
Some sellers face inventory that disappears after being marked "reserved" in FBA. Amazon offers compensation only if sellers jump through bureaucratic hoops - one tableware seller had to provide medical device certifications after their products were misclassified. The burden of proof falls entirely on sellers, with unclear paths to fair resolution.
III. Amazon's Questionable Competitive Practices
More egregiously, sellers report Amazon moving its own products into their listings after forcing removal of seller inventory for alleged "safety issues." One seller described the situation: "Our inventory gets removed or destroyed while they profit from our listing." Multiple sellers allege Amazon systematically suppresses their shipments while simultaneously competing through the same product pages.
IV. Unauthorized Disposal of Seller Property
German sellers report 400 perfectly functional products suddenly marked unsellable and automatically discarded overnight - despite account settings specifying returns. Amazon provides no advance notice or detailed explanations for these actions, effectively seizing seller property without due process.
V. Strategies for Navigating FBA Challenges
Experienced sellers recommend persistent case filings through Amazon's system, particularly focusing on "Fulfillment by Amazon" channels. Key approaches include:
Documentation: Maintain meticulous records of shipments, inventory status changes, and all communications with timestamps and supporting evidence.
Professional Support: Engage specialized e-commerce service providers with established appeal processes.
Community Collaboration: Participate in seller forums to share information and collective solutions.
Insurance Protection: Explore cargo insurance options to mitigate financial losses from inventory issues.
VI. Systemic Reforms Needed
These patterns reveal structural flaws in Amazon's FBA operations requiring platform-level solutions:
Transparent Standards: Clear, published guidelines for defect classifications with objective criteria.
Accountable Processes: Established appeal procedures with seller access to warehouse verification.
Inventory Safeguards: Enhanced systems to prevent loss and improve handling accountability.
Competitive Neutrality: Policies preventing Amazon Retail from exploiting seller listing disruptions.
Customer Service Reform: Trained support teams empowered to resolve fulfillment issues.
As peak sales seasons approach, sellers face heightened urgency for these operational improvements. The viability of Amazon's marketplace depends on restoring seller confidence through fair, transparent processes that respect all participants' rights equally.