Yes, losses happen when automation is done poorly: unauthorized suppliers, fake documentation, or reliance on risky tactics can lead to account flags, stranded inventory, or thin margins. The way to reduce downside is to treat Amazon as a real business: use authorized brand partnerships or approved distributors, maintain invoice trails, follow policy to the letter, and focus on products with steady, proven demand. A compliance-first operator will set conservative expectations, run test buys across multiple SKUs to validate velocity and margins, and scale only what performs. Transparent reporting and client ownership of the account and inventory further protect your position. Some providers also align incentives through performance-linked terms and documented deliverables. While no business is risk-free, an authorized reseller model that emphasizes documentation, category fit, and disciplined replenishment is far less volatile than ad-heavy private label or gray-hat dropshipping. It converts uncertainty into a process that can be measured and managed.