Amazon Holding Seller Funds & Inventory
A suspended account brings an Amazon seller’s entire business down.
“Your Amazon selling privileges have been removed. To sell on Amazon.com, please provide a detailed plan of action on how you will address these issues.”
Being barred from selling on Amazon is detrimental enough – but to top it off, Amazon will refuse to release your funds while your account is suspended. Regardless of the transaction in question or issue that brought on the suspension, Amazon will hold all of the funds in your seller account balance.
Is this fair? Absolutely not.
Of course, Amazon wants to maintain flawless customer service for all of their customers – their core principles state this explicitly. But what about the sellers? Running an ecommerce business should not be a constant risk – but when you sell on Amazon, that’s exactly what it is.
Merchants See a Rise in Amazon Holding Seller Funds
Maybe you signed up for an Amazon seller account with the goal of launching your dream business through the platform, or maybe you just wanted to try your luck at making some money online by selling a few unwanted items. Either way, Amazon holding seller funds is probably not an issue that came to mind.
When you make a sale, the money is yours, right?
Unfortunately with Amazon, that’s not always the case.
A rising trend in Amazon holding seller funds has many sellers concerned – with any issues that come up on your account, warranted or not, Amazon’s policies state that your funds can be held for up to 90 days. When an online merchant’s money is withheld for three months, other aspects of the business are put on hold with it. This includes the ability to purchase new inventory, make other business investments, and keep the company up and running properly.
What if my money is being held even after I’ve submitted an appeal?
If Amazon is withholding your money and refusing to release it after your plans of action and your appeals, you have every right to take Amazon to arbitration.
If the amount that Amazon is refusing to release to you is up to $10,000 and you are successful at arbitration, Amazon is obligated to pay the costs. If the amount Amazon is refusing to release to you is over $10,000 but up to $75,000, you can use the American Arbitration Association’s expedited arbitration system.
If you hire us to represent you in that matter, we can also provide you with flat fees so that you will know exactly what it will cost to seek an order directing Amazon to release your money. Expedited arbitrations can be completed within 60 days of filing. The rules in expedite arbitrations state that you are entitled to your hearing within 30 days of the arbitrator being appointed to your case.
If Amazon is refusing to release your money to you, you are not impotent. Amazon does not have the final decision-making power. We can stand with you, we can help you stand up for yourself.
The Seattle Attorney General’s office receives hundreds of complaints against Amazon, with most of them coming from merchants alleging issues of Amazon holding seller funds arbitrarily. With no valid explanation as to why the funds are being held and no true platform to express their arguments, sellers are undoubtedly receiving the short end of the stick when it comes to disbursements.
What’s more, it is near impossible for online merchants to go up against Amazon. The platform’s power increases daily as they enter new markets including food and grocery, custom designs, and handmade products, and it is becoming clear that online merchants on other platforms don’t stand a chance. Along with unmatched prices for every product available, Amazon has now ventured into selling services and even lending options for sellers. How can you beat that?
It is a difficult choice for every ecommerce entrepreneur, without a doubt. One route is to reach Amazon success, only to have the all-too-common issue of Amazon holding seller funds from you without warning. The other route is to try and fight against Amazon with your own website sales or selling on other platforms, which is a war that will not end in favor of anyone except Amazon at this point in time.