How to get your Money Back through Amazon Arbitration
Updated: Sep 5, 2019
One of the pitfalls of businesses on Amazon is when your funds are withheld should you breach the company’s terms of service. This can often happen when Amazon have suspended your account and you have failed to over turn the original Amazon suspension using the Seller Services appeal team and the escalations team. Suspensions can escalate from a single Amazon negative review so it's important to keep your Amazon account in good health to avoid all suspensions.
The most common type of suspension that leads to Seller taking Amazon to an arbitration is inauthentic item suspension which then becomes a counterfeit/forged document suspension once Amazon have seen the invoices.
This can be extremely frustrating for the Seller especially if the invoices are genuine. It is very difficult to second guess why Amazon don't accept what appear to be genuine invoices.
Other reasons why Sellers end up in this situation cover a wide range of issues, some of which may be accidental or have occurred due to a lack of knowledge surrounding Amazon’s terms and conditions.
But these periods can be vital to a business’ future, and getting those funds released as quickly as possible is crucial.
Thompson and Holt managing director Craig Gedey explained: “We can provide advice for Amazon sellers that find themselves in what can be a worrying situation when funds are withheld.
“We work closely with leading Amazon lawyers who specialise in getting sellers’ money back through the arbitration process.
“We can help all sellers, both large and small, in directing Amazon to release your money.
“It is a fact that all sellers have the right to take Amazon to arbitration at the American
Arbitration Association, or AAA for short. This is only applicable for Sellers who sell in the US. There is currently no process for European Sellers although work has begun on mapping out the process in Europe, it is likely that the process will finish in Luxembourg.
“When you begin that process, you take the decision making out of Amazon’s hands and into independent ones.
“With the correct advice through Thompson and Holt, you can then work quickly towards having your funds released.”
The Amazon arbitration process
The process for a suspended Amazon seller to complete her arbitration has several steps including:
Selection of an arbitrator
Preliminary conference with arbitrator and Amazon’s attorneys
Minimal discovery where both sides exchange information
The arbitration hearing
Should Amazon refuse to release up to $10,000 in cash or inventory, Thompson and Holt's partner attorney can help by arranging the required documents, providing advice on how to represent yourself at arbitration and call on our experience of working with countless sellers in past cases.
A hearing will be held within 30 days of the arbitrator being appointed, and decision from them will be made within 14 days of the hearing.
Should you win, Amazon will pay the costs you have incurred in using the American Arbitration Association.
If the funds at stake are between $10,000 and $75,000, the expertise of the Amazon lawyers that Thompson and Holt uses are invaluable.
Managing partner Gedey added: “This can be a daunting situation for Amazon businesses not familiar with how the company’s systems work - not to mention the arbitration process.
“Thompson and Holt and the Amazon lawyers that we work closely with can provide reassurance and invaluable expertise in these scenarios.
“We will work towards releasing your business’ funds as quickly as possible so you can continue selling online.”
It can be a daunting process if you are unfamiliar with an Amazon arbitration, but Thompson and Holt has vast experience in compiling successful Plan of Actions, so get in touch if you need to either avoid suspension or get back online as quickly as possible. If your situation requires immediate assistance please follow this link and speak to an Amazon Appeal Expert or alternately visit Thompson and Holt.