What should I ask about an Amazon seller’s inventory sitting in fulfilment centres?

Stock held at a fulfilment centre is real inventory, but you do not control it. Ask the seller to pull the platform’s own inventory reports and walk you through them on screen. Look at sellable units, units being processed, damaged units and units that are stuck.

Compare those counts with purchase orders and supplier invoices. Gaps may point to lost stock, unreported reimbursements or errors. Ask how often the seller reconciles the two and who does it. Look at ageing. Items sitting for a long time may attract higher storage charges or need to be removed. Ask what the seller does with slow lines and what those decisions have cost. Ask when the seller last counted physical stock themselves, and what they found. A seller who audits their own units and chases reimbursements is more likely to hand over a clean business than one who relies only on dashboards.

Ask what is on its way from suppliers and what has been paid for already. Stock in transit belongs in the discussion about closing day. Finally, check whether any inventory is financed or pledged. Your accountant can advise how stock is valued, and your lawyer can advise how it moves with the account.

Key takeaways

• Have the seller show the platform’s own inventory reports on screen.
• Reconcile fulfilment centre counts with purchase orders and supplier invoices.
• Ask about ageing, unfulfillable units, stock in transit and any lender claims.