Selling on Amazon is a high-stakes game. While it offers unparalleled reach and sales potential, the marketplace comes with a hidden cost structure that can quietly drain profits. From Amazon FBA fees and storage charges to advertising inefficiencies and return costs, sellers often lose money without realizing where it’s going.

This is where Quarterly Business Reviews (QBRs) come in. By conducting structured QBRs, Amazon sellers can identify wasteful spending, optimize fees, and enhance profitability. In this article, we’ll explore how Amazon sellers can leverage QBRs to uncover hidden costs and maximize their bottom line.

The Problem: Hidden Costs That Eat Into Amazon Profits

Generally, many Amazon sellers assume their biggest expenses are the cost of goods sold (COGS), advertising spend, and fulfillment fees. But in reality, numerous hidden costs slowly erode profitability. These include:

1. Amazon’s Ever-Changing Fee Structure

• FBA Storage & Long-Term Storage Fees – Unexpected increases can cut into profits. (AIS Now)
• Referral Fees & Closing Fees – Small changes in category-based fees often go unnoticed.
• FBA Removal & Disposal Fees – Hidden costs when trying to remove excess inventory.

2. Inefficient PPC Ad Spend

• Amazon’s advertising algorithms change frequently, which makes some campaigns inefficient over time.
• QBRs help sellers track ACoS (Advertising Cost of Sale) and TACoS (Total Advertising Cost of Sale) trends.

3. High Return Rates & Refund Costs

• Customer returns & restocking fees can drain revenue.
• Reimbursement delays from Amazon add additional financial strain. (Grain Blog)

4. Warehouse & Inventory Inefficiencies

• Overstocking leads to high storage fees, while understocking leads to lost Buy Box opportunities.
• Damaged inventory reimbursement audits can reveal significant recoverable losses. (Gainsight Guide)

5. Unoptimized Amazon Vendor Agreements (For Vendors & 1P Sellers)

• Chargebacks & Co-Op Fees – Hidden penalties Amazon applies for compliance issues.
• Delayed Payments & Deductions – Vendor agreements often result in slow payouts & further unexpected deductions.

Without a structured QBR process, sellers unknowingly lose thousands of dollars every quarter.

The Solution: How QBRs Help Amazon Sellers Cut Costs

QBRs serve as a profitability health check, allowing Amazon sellers to uncover financial inefficiencies. Here’s how QBRs optimize costs:

1. Audit Amazon Fees & Reimbursements

• Use Amazon Fee Tracker Tools (e.g., Helium 10, Jungle Scout, Sellerboard) to detect excessive fees.
• Review FBA reimbursements to ensure Amazon owes you for lost or damaged inventory.
• Track storage fee trends and remove slow-moving inventory before long-term storage fees hit.

 Pro Tip: Conduct a fee audit every quarter to compare expected vs. actual Amazon charges.

2. Optimize PPC & Ad Performance

• Review ad campaigns that drain budget without conversions.
• Compare ACoS & TACoS trends over the last quarter to adjust bids.
• Eliminate low-performing keywords and reallocate budget to high-converting ASINs.

Pro Tip: Set a monthly QBR checkpoint for ad spending adjustments.

3. Minimize Return Rates & Refund Losses

• Identify products with high return rates and adjust listings, descriptions, or packaging.
• Ensure Amazon reimburses you for returned but unsellable items.
• Assess customer feedback trends to improve product quality.

Pro Tip: Check Refund Reimbursement Reports in Seller Central to claim owed funds.

4. Streamline Inventory Management

• Adjust inventory based on seasonal trends & sell-through rates.
• Avoid excess storage fees by monitoring Inventory Age Reports in Seller Central.
• Plan FBA shipment schedules to prevent out-of-stock penalties.

Pro Tip: Set a 30-day QBR mini review, then check stock levels before peak seasons.

5. Negotiate Amazon Vendor Agreements (For Vendors & 1P Sellers)

• Review Chargeback Fees and dispute penalties that don’t apply.
• Analyze Net PPM (Pure Profit Margin) to ensure wholesale pricing remains competitive.
• Reduce co-op fees & advertising deductions that eat into profits.

Pro Tip: Run QBR reports on chargebacks & co-op fees to pinpoint unnecessary costs.

How to Conduct a High-Impact QBR as an Amazon Seller

A well-structured QBR can transform hidden fees into increased profitability. Follow these steps:

Collect Financial & Performance Data

• Download Amazon Fee Reports & Seller Performance Reports.
• Use analytics tools like Helium 10, Sellerboard, or Jungle Scout.
• Gather insights from FBA Inventory Reports & PPC Campaign Data.

Identify Cost Leakages

• Compare actual vs. expected costs for Amazon fees, ad spend, and inventory.
• Highlight top revenue-draining ASINs (products with high returns or low profit margins).

Set Cost-Reduction Goals for Next Quarter

• Reduce ad spend waste by at least 10%.
• Cut FBA storage fees by optimizing inventory turn rates.
• Recover reimbursements from Amazon (audit lost/damaged inventory).

Implement Data-Driven Action Plans

• Optimize listing content & pricing strategies to lower return rates.
• Negotiate better terms with vendors (for 1P sellers).
• Monitor progress & adjust QBR strategies every quarter.

Conclusion

Above all, the Amazon marketplace is full of hidden costs that gradually erode your profits. Without Quarterly Business Reviews (QBRs), sellers remain unaware of excessive FBA fees, return losses, inefficient ad spend, and unoptimized inventory costs.

By conducting structured QBRs, Amazon sellers can:
Cut unnecessary fees
Optimize ad performance
Streamline inventory management
Reduce return rates
Recover Amazon reimbursements

💰 Want to maximize Amazon profits? Make QBRs a non-negotiable part of your strategy!

External Resources for Further Reading

 The Importance of a Quarterly Business Review (QBR) for Your Business – AIS Now
 How to Run a Successful Quarterly Business Review for Amazon Sellers – Grain
 Gainsight’s Guide to QBRs for E-commerce & Customer Success