What Happens When Amazon Loses or Destroys Your Inventory?!

Amazon sellers, today I’m going to be talking to you about what damages you can recover against Amazon if they take your inventory or they refuse to release your money.

Okay, Amazon sellers. When Amazon refuses to release your money or Amazon loses your inventory, doesn’t log it in properly or destroys it, whatever bad happens to you, Amazon sellers always want to know, well, what is it? What can we recover from Amazon? How do we get paid when Amazon has totally cost us damages?

So the way you recover money from Amazon, whether it’s for money it is withholding from you, or money for inventory that was damaged or lost is either amicably by putting in cases, or when those things fail, by taking Amazon to arbitration.

Your damages are limited to the direct damages and collateral damages are strictly prohibited. You can’t get them back. You signed away that right when you’re opened up your Amazon account through the terms of service, which is really called the business solutions agreement. So what is the difference?

Direct damages are the value of your inventory. And those damages are calculated by the sale price less FBA fee. So if Amazon lost a thousand units of your product or Amazon destroyed a thousand units of your product and they were selling for $25 a unit, less let’s say $5 in FBA fees and costs and whatever. I know those numbers are incorrect. But let’s say after FBA fees, you would’ve received $20 a unit. You’d take $20 times it by a thousand, that’s the amount of money you could recover from Amazon.

Now you cannot recover what’s called collateral damages, which are sort of the damages that were caused that were secondary to the direct loss. What am I talking about? So let’s take the $20,000 that you would’ve received if Amazon didn’t wrongfully withhold it or Amazon didn’t lose your inventory, you would’ve taken that 20 grand and purchased more inventory and made more profit. Those lost profits are what’s called collateral damages. And your contract says you cannot recover those types of damages from Amazon.

You also can’t recover your attorney’s fees.

You also cannot recover the cost of taking Amazon to arbitration.

If you want to learn more about what you can recover, how we have recovered millions of dollars for Amazon sellers all over the world, contact us for a free consultation. When it comes to taking Amazon to arbitration, you’ll be dealing with me, you’ll be dealing with my awesome partner, Rob Segall, Rob Segall’s paralegal, Ashley. We just have an incredible team addressing these types of issues when Amazon has refuse to release your money or they’ve lost, stolen, or disposed of your inventory and you just can’t get it back amicably. That’s when you have to take Amazon to arbitration.