Amazon FBA Operations

Diagnosis for Amazon FBA Health An Audit

Understand the true cost of FBA operations and identify hidden inefficiencies and compliance risks that erode margin.

Operator-led insights to secure your Amazon FBA profitability.

Trusted by ambitious retail brands

Who owns what, when

Audit Readiness Three Ways

Our audit approach clarifies responsibilities, identifies operational gaps, and provides a clear roadmap for FBA optimisation.

Assess & Diagnose

A deep dive into your current FBA setup, fee structures, and inbound processes to uncover operational and financial leakages.

  • FBA fee reconciliation and overcharge identification
  • Inventory Performance Index (IPI) score analysis
  • Inbound shipment compliance review
  • Stranded and aged inventory root causes

Optimise & Reconcile

Develop and implement corrected processes for fee tracking, inventory management, and shipment preparation.

  • Correct product dimension and weight data
  • Implement IPI improvement strategies
  • Streamline returns and removals processes
  • Establish financial reconciliation workflows

Govern & Maintain

Establish clear ownership and monitoring frameworks to prevent future issues and ensure sustained FBA operational health.

  • Standard Operating Procedures (SOPs) for FBA team
  • Performance monitoring and reporting dashboards
  • Regular audit cadence for compliance
  • Training on Amazon policy changes

Why Cogent2

Why Amazon FBA Setups Drift Into Risk

Retailers often face challenges managing FBA due to Amazon's dynamic policies, complex fee structures, and the daily pressure of maintaining stock. This often leads to manual workarounds, reporting gaps, and significant financial reconciliation issues that erode profitability without clear visibility.

  • FBA Cost Optimisation
  • IPI Score Improvement
  • Inbound Compliance
  • Aged Inventory Reduction
  • Returns Process Streamlining
  • Cross-functional Process Design

Operator-led

Engagement model

20+ Years

Retail experience

Multi-platform

Ecosystem view

Pragmatic

Solution design

Ecosystem Intelligence

CogentAI

CogentAI enhances Amazon FBA audits by identifying patterns in vast datasets that human operators might miss, from subtle shifts in fee calculations to early indicators of inbound shipment compliance issues.

Anomaly Detection
Performance Monitoring
Predictive Analytics
Inventory Optimisation

"Our AI tools add a layer of analytical depth to FBA audits, surfacing critical insights faster and with greater accuracy, allowing your team to focus on resolving the root causes rather than data extraction."

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FBA fee variance detection and IPI score trajectory analysis

Audit Areas Reviewed

FBA Operational Governance

We review your FBA operations across all critical areas to ensure robust processes and data integrity.

Governance & Compliance

  • Amazon FBA policy adherence
  • Fee reconciliation processes
  • Returns and disposal policies
  • Performance metric monitoring (IPI)

Data Ownership & Integrity

  • Product master data accuracy (dimensions, weight)
  • Inventory source of truth
  • Financial data flow reconciliation
  • Reporting accuracy validation

Process Maturity & Efficiency

  • Inbound shipment preparation workflows
  • Returns handling and grading
  • Stranded inventory resolution
  • Forecasting and replenishment strategies

Reporting & Visibility

  • FBA Business Reports utilisation
  • Custom dashboard integration
  • Identifying key performance indicators (KPIs)
  • Actionable insight generation

Connected Ecosystems

Amazon FBA Never Operates Alone

An effective FBA operation relies on robust connections with your wider commerce ecosystem, particularly around inventory and finance.

Marketplace

Amazon Seller CentraleBayMirakl

Ecommerce

ShopifyAdobe CommerceSalesforce Commerce Cloud

ERP & Inventory

NetSuiteSAP Business OneBrightpearlMicrosoft Dynamics 365

Integration & Intelligence

PatchworksCogent AIPower BI

Financials

XeroSageQuickBooks

Typical Findings

Common Operational Mistakes Impacting FBA Profitability

We frequently uncover patterns that indicate significant operational inefficiencies and financial leakage in FBA setups. Our audit identifies these early.

Undetected Overage Fees

Symptoms

  • High storage fee percentage on FBA sales
  • Discrepancies between Amazon's reported dimensions and actual product size
  • Lack of regular fee reconciliation

Root Causes

  • Incorrect product dimensions in Seller Central
  • Amazon's random dimensional audits
  • Absence of a dedicated FBA finance reconciliation process
Amazon Seller CentralERP

Impact: Direct erosion of profit margins, often compounding over time.

Cogent Approach: We reconcile fees against internal product data and dispute overcharges, implementing a routine audit process for future prevention.

Declining IPI Score

Symptoms

  • Increased storage limits
  • Reduced inventory visibility in FBA warehouses
  • Higher storage fees across the board

Root Causes

  • Excessive aged inventory or stranded stock
  • Low FBA sell-through rates
  • Poor inbound shipment planning
Amazon Seller CentralOMS

Impact: Restricted growth, higher operational costs, and potential for stock-outs on strong sellers.

Cogent Approach: We diagnose the IPI drivers and develop actionable plans to improve sell-through, clear aged stock, and optimise inbound strategies.

Inbound & Receiving Discrepancies

Symptoms

  • Missing units from inbound shipments
  • Delayed availability of received stock
  • Frequent claims against Amazon for lost inventory

Root Causes

  • Non-compliant prep and labelling by suppliers/3PLs
  • Misaligned shipping processes with Amazon's requirements
  • Lack of rigorous shipment reconciliation
Amazon Seller CentralWMSERP

Impact: Lost sales, customer dissatisfaction, and significant time spent on manual dispute resolution.

Cogent Approach: We audit your inbound process end-to-end, standardise prep requirements, and establish robust reconciliation procedures.

Audit Checkpoints & Maturity

Deep Integration Expertise

Our operator-led expertise spans the entire FBA lifecycle, from inbound compliance and inventory management to financial reconciliation and IPI score optimisation. We provide a structured audit framework to assess operational maturity.

  • FBA Fee Structure Analysis
  • IPI Score Diagnostic
  • Inbound Process Compliance
  • Inventory Sync Governance
  • Returns & Disposal Optimisation
  • Financial Reconciliation Workflows

Foundation

Reactive FBA usage, manual processes, frequent fee surprises.

Optimisation

Proactive IPI management, fee reconciliation, standardised inbound.

Strategic

Leveraging FBA for growth, automated reconciliation, multi-country.

Data Governance

Process Standardisation

Ecosystem Visibility

Intelligent Forecasting

Future-Ready Operations

Preparing FBA for Strategic Scale

An FBA audit goes beyond identifying current issues; it prepares your entire operational framework for future scale and increased reliance on automated decision-making. We position FBA as a strategic component of your overall fulfilment model.

By establishing clear data flows, robust reconciliation processes, and consistent reporting, your FBA operations become a reliable and predictable part of your commerce ecosystem. This foundation is essential for integrating advanced analytics and AI-driven inventory management.

This groundwork ensures that as your business grows and your Amazon presence expands, the underlying FBA processes remain resilient, cost-effective, and fully compliant, reducing future audit cycles.

Knowledge Base

Frequently Asked Questions

Audit Objectives
What does an Amazon FBA audit cover?
Our FBA audit comprehensively reviews fee structures, inventory performance (IPI), inbound shipment compliance, returns processing, and reconciliation workflows. The objective is to identify financial leakage, operational inefficiencies, and areas for strategic improvement.
How long does a typical FBA audit take?
The duration of an FBA audit varies depending on the complexity of your operations, product catalogue size, and historical data. A typical audit engagement can range from 3 to 6 weeks, culminating in a detailed findings report and action plan.
Findings & Deliverables
What are the common findings of an FBA audit?
Common findings include systematic overcharging on fulfilment fees, declining IPI scores due to aged or stranded inventory, inbound shipment discrepancies, and inefficient returns processes. We often identify issues with product dimension data and lack of automated reconciliation.
What deliverables will I receive from the audit?
You will receive a comprehensive FBA Fee Rectification Report, an IPI Score Improvement Plan, detailed Inbound Shipment Standard Operating Procedures (SOPs), an Aged Inventory Action Plan, and a strategic roadmap for sustained FBA operational health.
Post-Audit Engagements
What happens after the audit?
Following the audit, we present our findings and recommended action plan. You can choose to implement these recommendations internally, or we can provide further advisory and implementation support to execute the optimisation strategies.
Can you help implement the audit recommendations?
Yes, we offer post-audit engagement options to assist with the implementation of recommended changes, including process redesign, tooling integration, and team training, ensuring the identified optimisations are fully realised.

Working Together

Audit Process

Assessment

Initial data collection, discovery workshops, and system access to conduct a thorough review of your FBA operations and financials.

Diagnosis

Analysis of data, identification of critical issues, root cause analysis, and development of a detailed findings report.

Action Plan

Presentation of findings, collaborative development of a prioritised action plan, and strategic recommendations for improvement.

Ready to Reconcile Your Amazon FBA Operations?

Don't let hidden fees and inefficient processes erode your FBA profits. Our audit provides a clear, actionable path to operational excellence and financial accuracy.