Amazon Seller News: Appealing For Withheld Funds
Frozen or withheld funds are a common consequence of certain types of suspension on Amazon. Under Amazon’s Business Solutions Agreement, they have the right to hold your funds with indefinite extensions unless you resolve outstanding issues on your account. In this blog, we walk through the options that sellers have when their account’s funds are frozen.
Why Does Amazon Freeze Funds
Amazon frequently withholds the funds from suspended sellers in cases where refunds may need to be issued to customers. For issues such as counterfeit or inauthentic product suspensions, Amazon’s goal of prioritizing customers means they want to make issuing refunds as easy as possible – thus leading them to hold your money.
Once your funds are frozen, Amazon has the rights to hold them for up to 90 days with extensions under the Business Solutions Agreement. Though they are obligated to release these funds eventually, we have seen cases in which funds are held indefinitely until the seller resolves ongoing issues with their account. This means that letting the issue sit on your account will typically not result in your reclaiming your funds. Instead, you are generally required to create an appeal directed at unfreezing your account.
Retrieving Withheld Funds on Amazon
The process for retrieving withheld funds on Amazon typically involves appealing your suspension through the creation of an Amazon Plan of Action (POA) appeal. These appeals address the root cause of your suspension, the immediate actions you have taken to correct the issue, work you are doing to prevent future suspensions, and any supporting evidence.
These POA appeals are the first step for dealing with most suspensions, after which, an escalation appeal can be created that addresses further evidence as to why your account should be reinstated. If neither option is successful, you have the option of contacting a legal team that can escalate the situation to Amazon’s legal department, or send a pre-arbitration letter.
Arbitration is a private legal proceeding that is often the final step for sellers with frozen funds totalling more than $100,000. Similar to a public courtroom, arbitration plays out with both your legal team and Amazon’s defense making arguments over your frozen funds. The private arbitrator then has the ability to issue a legally binding decision. More information about arbitration can be found on our service page linked here.
Appealing Only For Withheld Funds
Another option for sellers with withheld funds is to appeal only with the goal of retrieving those funds rather than appealing their suspension entirely. This is best for sellers who are looking to cease selling on Amazon entirely and want to prioritize getting their money back before exiting the platform.
Appeals for unfreezing funds are often a quicker route to resolution than appealing a suspension because Amazon’s enforcement team does not have to review your entire case. It is important to note that for these appeals, Amazon will not reinstate your account if you are successful at lifting the freeze on your funds.
Contact Amazon Sellers Lawyer Today!
If your funds are currently being withheld on Amazon, contact the team at Amazon Sellers Lawyer today! We have been focusing exclusively on helping sellers resolve issues like this since 2016 and know the strategies that create compelling appeals. Give us a call at 212-256-1109 or fill out our online form linked here.
About the Author
CJ Rosenbaum, Esq.
CJ Rosenbaum is the founding partner of Amazon Sellers Lawyer. He’s been practicing law since 1995, and since 2016 his firm has focused exclusively on helping Amazon sellers deal with issues like suspensions, intellectual property disputes, and withheld funds.
CJ has written six books on Amazon seller legal issues including the Amazon Sellers’ Guide to Copyright Law. He has spoken at major industry events like the Prosper Show, Global Sources Summit, Retail Global. CJ also works with the Amazon Sellers Lawyer team to provide free content for Amazon sellers. This is available through their online blog and YouTube channel, frequently covering major Amazon updates and important topics relevant to the seller space.
Through BrandProtectionAmazon.com, the firm also supports brands in protecting their products. This gives the team the unique opportunity to learn from case wins on both sides of the fence, strengthening protection for both the sellers and brands that Rosenbaum & Segall P.C. represents.
Amazon repeatedly rejecting your Plan of Action? Amazon Sellers Lawyer handles suspension appeals and account reinstatement cases – including arbitration against Amazon when they’re withholding seller money. Contact us to discuss your situation and figure out the best path forward.