Third-party Amazon sellers should monitor returns carefully or risk buyer complaints Curling irons with someone else’s hair in them. Mouthwash with broken seals. Coffee makers with smelly old moldy coffee inside. These are only a few of the disgusting surprises that FBA sellers have experienced. Why? Because Amazon’s FBA returns handling processes are – to put it kindly – lacking. Third-party Amazon sellers should monitor returns What happens when customers return items to FBA? One reason buyers love Amazon is the friendly returns policy for FBA purchases. Amazon makes it easy for customers, who can take a look at their mail-order item and decide to send it on back. Unfortunately, buyers don’t always return items in new condition. This might mean torn packaging, broken seals, or even used items. When an order is sent back to the FBA warehouse, Amazon personnel are supposed to inspect it carefully. They are charged with determining if the item is still in “new” condition. If so, it is placed into the seller’s fulfillable inventory. If not, it is placed in unfulfillable. A third possible scenario involves Amazon repackaging the item. This happens when the product is in new condition, but the packaging is not. Amazon reserves the right to repackage it and place it back into fulfillable inventory. (The setting that once allowed sellers to turn off repackaging has been taken away. Sorry, folks, you’re stuck with it.) Amazon’s warehouse employees are graded on the number of transactions they conduct per hour. Human nature dictates that this leads to inaccuracy as employees try to meet or beat the required work level. Of course, quality naturally suffers, and items that should never be placed into fulfillable inventory are re-sold. Another problem occurs when Amazon puts returns in fulfillable from categories that are supposed to be disposed of or not required to be mailed back to the warehouse. Supplements are a good example. These items should never be put back into fulfillable, but often are anyway. What can 3P sellers do to protect themselves? The most worrisome scenarios with bad returns involve products that a 3P seller stocks over the long term. Therefore, the higher volume you sell over time, the more potentially bad returns are sent back to the Amazon warehouse. There are a few strategies that 3P sellers can employ to combat the problem: For private-label products, add a printed seal. Include language such as “if seal is broken, item is not new.” This seal is not for buyers. It’s for personnel on Amazon’s FBA returns processing teams. This way, they will be more likely to place an opened item into unfulfillable inventory. Sell down or sell through. For products you replenish, allow your stock to sell through. Alternatively, sell it down and then place a removal order for the remaining units. In the meantime, restock with a different SKU. This way, bad stock being resold multiple times will be removed from the FBA warehouse.

 

Working the appeals system with a skilled Amazon consultant creates better results

When my Amazon seller account is suspended, should I hire a lawyer? No. An attorney should not be your first call.

It’s an understandable knee-jerk reaction to start searching for a legal eagle. After all, Amazon has all the resources in the world. In other kinds of disputes, attack-dog lawyers are a great option for companies that need a fighter on their side.

But an Amazon suspension – whether for an account or an ASIN – is a very different animal from a lawsuit. Plus, there are several reasons that hiring an attorney early in the process can actually make it less likely you will be successful in your dealings with Amazon.

Legal eagles don’t fly in reinstatement appeals

There are a few simple reasons that attorneys do not make good Amazon appeal writers:

1. A key element to any account appeal or ASIN appeal is an admission of guilt. Amazon wants to know what you did wrong. Lawyers are opposed to admitting guilt – even if you were wrong. They are concerned that an admission of wrongdoing would hurt their client in future litigation. But without the admission, reinstatement will almost never happen.
2. Lawyers make threats and demands. Instead of going through the appeals process, some attorneys encourage sellers to send demand letters to Amazon’s legal department. This is a tremendous mistake. If you approach Amazon Legal instead of going through standard appeals channels, Amazon is very likely to stop communicating with you. Any future appeals you submit would be completely ignored.
3. Attorneys are not e-commerce consultants. For many appeal types, it’s critical that you correct failed business processes. The best appeal writers have experience with business processes and e-commerce. They know how to help your company identify gaps, update your SOPs and explain the results to Amazon.
4. Lawyers haven’t worked inside the Amazon machine. Ideally, your appeal should be written by somebody with an in-depth understanding of Amazon’s thinking, SOPs and structure. Teams that include ex-Amazon employees from Seller Performance and Seller Support can provide insight and guidance that a law firm cannot. Plus, Amazon consultants know how to work multiple channels inside of Amazon to solve your problems.
5. You cannot sue Amazon. With very limited exceptions, third-party sellers cannot file lawsuits against Amazon. This is part of the Business Solutions Agreement (BSA), which governs the relationship between the two parties. 

When should I hire a lawyer??

There are some limited circumstances where third-party sellers should I hire a lawyer? to protect their interests on the platform:

1. Intellectual property complaints can be difficult. Oftentimes, an Amazon consulting company like Riverbend can help you appeal these successfully. But in limited circumstances, you may need an attorney to defeat a complaint made against your company. Keep in mind, in these cases the attorney isn’t fighting Amazon on your behalf. Rather, the lawyer communicates with the alleged rights owner to try and convince them to remove their complaint. Or, in some cases, a lawsuit against the alleged rights owner may be necessary. This is particularly true for patent claims.
2. Sometimes, mediation is the end game. If the appeals process fails – both internally at Amazon and externally with government and quasi-government agencies – it’s time for mediation. This is allowed under the BSA. Some sellers choose to attack the mediation process themselves or with the help of a consultant. Others with a lot of money at stake should I hire a lawyer to help with the process.