AMAZON ARBITRAGE – AMZ Refusing to Release Sellers’ Money for LOST FBA INVENTORY

This is a real case report, file number 04726. It is a case where our client sent inventory into Amazon’s FBA warehouse.

It was labeled properly. It was identified properly, and Amazon lost the inventory.

Now, when Amazon loses inventory, I don’t really believe that’s actually lost. It’s more misplaced and I believe it’s more like adopted by Amazon and then Amazon sells it and keeps the money. So they have your stuff. They have your property. They have your inventory. They sell your inventory, but because they screwed up logging it in, you don’t get credit for the inventory and you don’t get paid for when it gets sold.

When these issues cannot be resolved amicably with Amazon, your next remedy, your sole remedy, is to file for an arbitration against Amazon. Take the decision making out of Amazon’s hands, put it into the hands of an arbitrator with the American Arbitration Association and proceed.

Now, many of these cases, they probably say 60% or more of the cases where we are compelled to file for an arbitration, settle and get resolved. Others go to a hearing. Let me tell you a little bit about the process….

First, you try and work things out amicably and you fail. Then you file for arbitration. The way it works is you file a demand for arbitration with the American Arbitration Association. You have to pay a filing fee. Amazon then gets notice of that arbitration in a very particular way. And then Amazon’s lawyers respond and say, “We represent Amazon in this case.”

Now at that juncture, we start to show the proof both within the arbitration and also to Amazon’s outside council. Amazon’s outside council works with Amazon’s paralegal staff within Amazon. That’s how a lot of cases are resolved because you get a new set of eyes. You actually get two new sets of eyes looking at the case. While we fight tooth and nail against Amazon’s lawyers.

When it comes to lost FBA inventory, if the amount of the value of the lost inventory is $35,000 or more and you can’t seem to resolve it amicably, then arbitration is a good route to take. Problems arise if the inventory is worth less money, because there are costs involved in arbitration. But if Amazon has lost $35,000 of your inventory or more, arbitration your remedy and it often results in settlements where you don’t have to go the full distance.

If you want to learn more about the arbitrations that we handle for Amazon sellers for lost inventory or when Amazon is refusing to release your money, submit your case online.