Suspended Amazon seller gets a record breaking award after spending $200000 on legal fees
An Amazon seller in the United States spent 18 months and $200,000 in legal fees fighting for his withheld funds and seized inventory following Seller Account deactivation over authenticity issues. In the end, he received about half the $1.4 million in restitution requested. But the biggest victory was the acknowledgment that the world’s largest online retailer treated him unfairly.
Amazon suspended the seller’s account after suspecting him of selling counterfeit electronics, according to arbitration documents reviewed. Then the company seized $80,000 in his account and 50,000 products stored in its FBA warehouses.
The merchant, who did not wish to disclose his identity, asked for his money and products back, but Amazon ignored him. He couldn’t file a lawsuit because, like all other Amazon sellers, he agreed to arbitration as a condition of selling on the platform.
After reviewing contracts, interviewing witnesses and reading legal arguments, arbitrator awarded the merchant $775,000 in November. He ruled that Amazon had reason to suspect the merchant and was within its rights to suspend his account. But he said the company went too far by ignoring the seller and withholding his products, including many that weren’t suspected of being counterfeit at all.
“Given the vast resources of Amazon,” he wrote, “I would hope that in the future it will devote the resources necessary to treat all of its sellers with respect and some semblance of due process.”
The case provides a rare look inside an arbitration process that lawmakers and regulators say favors Amazon by discouraging sellers who lack the money, time and energy to take on the company.
A report issued last year by the House Judiciary Committee investigating the power of big technology companies revealed that between 2014 and 2019 only 163 merchants—out of the millions who sell on Amazon—had initiated arbitration proceedings against the company. A bill that would end forced arbitration has been discussed in the Senate since 2019, and its advocates hope testimony from Amazon merchants will give it fresh momentum.
The original intent of the 1926 Federal Arbitration Act was to provide a cheaper, faster alternative to settling business disputes than clogging up public courts. In the decades since, U.S. Supreme Court rulings have allowed arbitration to spread further into day-to-day transactions.
Before consumers rent a car or get cellular service, they’re often asked to sign contracts in which they surrender the right to sue and agree to resolve any dispute through arbitration. Some businesses require new workers to agree not to sue as a condition of employment, practices that can let serial sexual harassers remain on the payroll while their victims take confidential settlements and leave.
It looks like lawmakers are finally waking up to the antitrust implications of big companies using arbitration to gain an unfair advantage over smaller ones. “Arbitration functions as a way for Amazon to keep disputes within its control, with the scales tipped heavily in its favor,” the House Judiciary Committee said in its report. “As such, Amazon can withhold payments from sellers, suspend their accounts without cause, and engage in other abusive behavior without facing any legal consequences.”
Amazon has no incentive to change its practices even though they often don’t pass muster with lawyers and retired judges who sideline as arbiters mediating disputes. When merchants prevail, the arbiter’s decision sets no legal precedent, so Amazon can do the same thing over and over, knowing most merchants won’t bother mounting a challenge.
“It’s very expensive and time-consuming, and most small businesses don’t have the money or the time,” says Mario Simonyan, a Burbank, California, attorney. He says most clients decide against launching arbitration cases against Amazon because they typically cost $80,000 in legal fees.
One potential solution is to pass the Forced Arbitration Injustice Repeal Act, which would create a way for Amazon sellers to pursue class-action lawsuits against the company. Jacob Weiss, a home-goods merchant who supports the legislation, testified before the House committee in February. He told lawmakers that, despite spending $50,000 on an arbitration case against Amazon, he failed to recover his losses. Weiss said a second case has dragged on for nine months without resolution.
The anonymous merchant who won his case isn’t waiting for a new law. He paid off debts with the arbitration award and hopes to start a new business “as far away from Amazon as I can get.” His suggestion: “Make the final rulings public so other arbiters can consider them and Amazon won’t lose the argument today and make the same argument with a different arbiter tomorrow and win.”
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As an Amazon seller, maintaining a healthy account status is crucial for the success of your business on the platform. Amazon continually updates and enhances the tools and features available to sellers to help them navigate their seller journey. One recent change that sellers may be aware of is the display of the “Account Health at Risk” status.
Previously, the “At Risk” Account Health status used to be displayed in a marketplace-specific rectangle which reflected that particular store’s state.
Now, Amazon Sellers will see a drop-down menu called “Account Health” displaying the number of “At Risk Stores”. This then expands to show more information, as pictured below:
At the same time, there is now an orange rectangle in the middle of the screen displaying the At Risk status in the specific store as well (below):
I hope you found this article helpful. If you are experiencing issues with your Amazon Seller Account and your Seller Account already received a warning or is under a review, I can help you resolve the matter.
If you would like to hire me to privately assist you, feel free to subscribe and reach out through my dedicated assistance page at www.onlyfans.com/kikaangelic, where I provide support with Amazon related matters in exchange for a small $24.99 fee. Alternatively, you can post into my free public discussion forum for Amazon Sellers, where I will answer your question.
To stay in touch, feel free to join and post into my large Amazon Seller Performance – Friendly Advice – Worldwide Facebook group, where you will be very welcome.
Many Amazon sellers recently started trading stocks and crypto currencies, hoping to diversify their income, which is a very good idea with all the uncertainty which comes with the platform. For this reason, we launched a new Facebook group, Crypto Arbitrage Income (Bitcoin, Crypto, Altcoins, Blockchain, Trading) – feel free to join us and forget about the troubles of selling on Amazon for a moment!
Additionally, here you can watch my YouTube video, where I am presenting you several secret tips about appealing Amazon Seller Account suspensions (don’t be confused by the opening of the video, where I am enjoying a vacation – it’s a part of the story):
You will be automatically enrolled in EPR Pay on Behalf, unless you prove compliance by December 31, 2023
As Amazon sellers, staying compliant with various regulations and requirements is crucial for a successful and hassle-free selling experience. Recently, Amazon has announced changes related to Extended Producer Responsibility (EPR) compliance in Spain, which may impact sellers offering packaged goods. In this blog post, we will explain what EPR compliance entails and how Amazon is here to assist you through the Pay on Behalf service.
What is EPR Compliance?
Extended Producer Responsibility (EPR) is a concept that places the responsibility for the management and recycling of packaging waste on the producers or manufacturers of the packaged goods. In Spain, Amazon is required to ensure that packaged goods offered for sale by sellers not established in Spain comply with EPR requirements.
Amazon’s Pay on Behalf Service
If you are a producer not established in Spain and sell on amazon.es, Amazon will automatically enroll you in the Pay on Behalf service for the period from January 1, 2023, to December 31, 2023. This service ensures that Amazon reports and pays eco-contributions on your behalf for your packaged goods sales on amazon.es. The collected amounts are then recovered from your seller account.
How Does Pay on Behalf Work?
EPR Pay on Behalf allows you to continue selling on amazon.es without worrying about EPR compliance. Under this service, Amazon will handle the reporting and payment of eco-contributions on your behalf. This means you can focus on your business while Amazon takes care of the regulatory aspects.
The process of using Pay on Behalf involves Amazon reporting and paying eco-contributions for your packaged goods sales on amazon.es in 2023 and beyond. All the terms and conditions are specified in the EPR Requirements policy for third-party sellers in Spain, which can be found on sellercentral.amazon.es.
Learn more on our Pay on Behalf page.
Service Costs
You might wonder about the costs associated with the Pay on Behalf service. Amazon will charge your seller account with a service fee and the eco-contribution fees that Amazon pays on your behalf. Detailed service fee information will be communicated before December 2023. To learn more about the service fees, visit the Pay on Behalf page on Amazon.
Learn more on our Pay on Behalf page.
Opting Out of Pay on Behalf
If you prefer not to use the Pay on Behalf service, you have an option to submit a valid packaging registration number here by December 31, 2023. This ensures that you can manage your EPR compliance independently. For more information on how to submit a valid packaging registration number, you can refer to Amazon’s Help page.
In case you don’t have a valid packaging registration number, Amazon has designed the EPR Services on Amazon, a solution that helps sellers obtain a UIN (Unique Identification Number) and pay eco-contribution fees to PROs (Producer Responsibility Organizations) with the assistance of trusted service providers.
I hope you found this article helpful. If you are experiencing issues with your Amazon Seller Account and your Seller Account already received a warning or is under a review, I can help you resolve the matter.
If you would like to hire me to privately assist you, feel free to subscribe and reach out through my dedicated assistance page at www.onlyfans.com/kikaangelic, where I provide support with Amazon related matters in exchange for a small $24.99 fee. Alternatively, you can post into my free public discussion forum for Amazon Sellers, where I will answer your question.
To stay in touch, feel free to join and post into my large Amazon Seller Performance – Friendly Advice – Worldwide Facebook group, where you will be very welcome.
Many Amazon sellers recently started trading stocks and crypto currencies, hoping to diversify their income, which is a very good idea with all the uncertainty which comes with the platform. For this reason, we launched a new Facebook group, Crypto Arbitrage Income (Bitcoin, Crypto, Altcoins, Blockchain, Trading) – feel free to join us and forget about the troubles of selling on Amazon for a moment!
Additionally, here you can watch my YouTube video, where I am addressing everything you need to know about Seller Identity Verification and how to pass it:
Action required: Important information about your product listings – Explained
Many sellers contact me daily through my OnlyFans page, informing me that they have received documentation requests for their Amazon listings and are feeling helpless, unsure of what to do. Some have even deleted their listings out of fear.
If you recently received a concerning email from Amazon titled “Action required: Important information about your product listings,” don’t worry. This article will tell you what it means and how to properly address the matter.
Here, you can view a screenshot of such an email:
The text of the wording states:
| Hello from Amazon, We are contacting you because you have listed products that require you to submit compliance documents. Click View Compliance Requirements below to see the list of affected products and submit the required compliance documents. If you do not submit the documents by the due date indicated for each product in this link, we may remove the affected listings. Why is this happening? This requirement helps ensure that products are compliant with local laws and safe for customers. How do I continue to sell the affected products? Click View Compliance Requirements to find out more information about the documents you need to provide for each product. Was there an error? If you believe that you do not need to submit documents for your product(s): 1. Click View Compliance Requirements. 2. Click Provide Documentation or Appeal next to the product. 3. Click Yes on Is this an Appeal? For FBA Offers: If you do not want to continue selling these products and have any inventory of these products remaining in our fulfillment centers, you’ll have 30 days from the date your listing is removed to create a removal order. You can find instructions for creating a removal order on the Remove Inventory Overview page. If you do not request a removal, automated removal orders will be triggered. Standard removal fees apply. Thank you, Amazon Product Compliance |
Following the link in the email called “View Compliance Requirements” will take you to the “Product Compliance Requests” and “Documentation Requests” sections on the Account Health Dashboard.
Click on the “Provide Documentation or Appeal” button.
All you need to do there is select “Yes,” insert your email address, and then submit.
Selecting “Yes” indicates that the product you are selling isn’t specifically intended for small children.
After completing this process, your listing will remain active, and you should also receive an email once your submission is reviewed.
Here is a screenshot of the correct site interface that you should see after clicking on the “Yes” option:
I hope you found this article helpful. If you are experiencing issues with your Amazon Seller Account and your Seller Account already received a warning or is under a review, I can help you resolve the matter.
If you would like to hire me to privately assist you, feel free to subscribe and reach out through my dedicated assistance page at www.onlyfans.com/kikaangelic, where I provide support with Amazon related matters in exchange for a small $24.99 fee. Alternatively, you can post into my free public discussion forum for Amazon Sellers, where I will answer your question.
To stay in touch, feel free to join and post into my large Amazon Seller Performance – Friendly Advice – Worldwide Facebook group, where you will be very welcome.
Many Amazon sellers recently started trading stocks and crypto currencies, hoping to diversify their income, which is a very good idea with all the uncertainty which comes with the platform. For this reason, we launched a new Facebook group, Crypto Arbitrage Income (Bitcoin, Crypto, Altcoins, Blockchain, Trading) – feel free to join us and forget about the troubles of selling on Amazon for a moment!
Additionally, here you can watch my YouTube video, where I am addressing everything you need to know about Seller Identity Verification and how to pass it:
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