Amazon Controls FBA Inventory—Sellers Shouldn’t Pay for Its Losses

The Issue

This petition addresses a widespread and systemic issue affecting sellers across the Amazon marketplace: the routine denial of reimbursement for inventory lost or damaged while under Amazon’s Fulfillment by Amazon (FBA) control.

This is not an isolated problem. Individual appeals and case submissions consistently fail because the issue stems from the inconsistent application of Amazon’s own reimbursement policies and contractual obligations under the Amazon Business Solutions Agreement (BSA).

As sellers, we absorb repeated financial losses for fulfillment failures we do not control and cannot prevent. This petition seeks a unified, policy-based resolution. It relies solely on Amazon’s published rules and contractual responsibilities, without emotion, accusation, or speculation.

 
To Amazon Leadership and Policy Decision-Makers
We, the undersigned Amazon sellers, submit this petition to demand fair, consistent, and contractually compliant reimbursement for inventory lost or damaged while under Amazon’s Fulfillment by Amazon (FBA) control.

This request is based exclusively on Amazon’s own published policies and the binding terms of the Amazon Business Solutions Agreement.

 
The Issue
Once inventory is delivered into Amazon’s FBA network, sellers relinquish all control over storage, handling, shipping, transit, and delivery. From that point forward, Amazon maintains sole possession and operational responsibility.

Despite this, sellers are increasingly denied reimbursement for units that Amazon itself refunds or replaces for customers. These refunds or replacements inherently confirm that the item was lost or damaged during Amazon-managed fulfillment.

This practice shifts Amazon’s fulfillment losses onto sellers, despite sellers having no involvement in, or ability to prevent, the failure.

 
Amazon’s Policy Commitments
Amazon’s FBA Inventory Reimbursement Policy states:

If an item sent to Amazon as part of FBA is lost or damaged at an Amazon facility or by an Amazon-operated carrier, Amazon will reimburse the seller.
If Amazon refunds or replaces an FBA order, reimbursement is calculated based on the refund or replacement value, minus applicable fees.
When Amazon refunds or replaces a customer order, Amazon has already determined that the item did not arrive in acceptable condition. That determination alone confirms a fulfillment failure occurring under Amazon’s control.

 
Transit and Fulfillment Responsibility
Transit is the movement of goods. Once inventory enters the FBA network, all movement—from warehouse handling to carrier selection to final delivery—is exclusively managed by Amazon.

Sellers do not control packaging, carriers, routing, delivery timing, or customer interactions. Any loss or damage occurring prior to customer receipt necessarily occurs during Amazon-managed fulfillment.

 
Refunds Confirm Responsibility
Amazon regularly issues customer refunds under its customer service policies. While this protects customers, it also represents an acknowledgment of a fulfillment failure.

Denying seller reimbursement after issuing a customer refund creates an internal inconsistency. Amazon accepts responsibility to the customer while rejecting responsibility to the seller for the same transaction.

 
Contractual Obligations Under the BSA
The Amazon Business Solutions Agreement requires Amazon to comply with its Program Policies and assigns Amazon responsibility for the handling, storage, delivery, and customer service of FBA inventory.

Reimbursement for inventory lost or damaged under Amazon’s control is therefore a contractual obligation, not a discretionary decision.

 
Our Requests
We respectfully request that Amazon:

Honor the FBA Inventory Reimbursement Policy as written
Reimburse sellers when Amazon refunds or replaces FBA orders due to loss or damage
Apply consistent definitions of transit and fulfillment responsibility
Provide clear, transparent explanations for any reimbursement denial
 
Conclusion
Fair reimbursement is essential to a balanced and sustainable marketplace. When Amazon confirms a fulfillment failure by refunding a customer, reimbursement to the seller must follow.

Signed,
Amazon Sellers

avatar of the starter
ASGTG Sellers GroupPetition StarterASGTG is a collaborative forum for Amazon Sellers, aimed at assisting them in navigating the challenging terrain of selling on Amazon.

862

The Issue

This petition addresses a widespread and systemic issue affecting sellers across the Amazon marketplace: the routine denial of reimbursement for inventory lost or damaged while under Amazon’s Fulfillment by Amazon (FBA) control.

This is not an isolated problem. Individual appeals and case submissions consistently fail because the issue stems from the inconsistent application of Amazon’s own reimbursement policies and contractual obligations under the Amazon Business Solutions Agreement (BSA).

As sellers, we absorb repeated financial losses for fulfillment failures we do not control and cannot prevent. This petition seeks a unified, policy-based resolution. It relies solely on Amazon’s published rules and contractual responsibilities, without emotion, accusation, or speculation.

 
To Amazon Leadership and Policy Decision-Makers
We, the undersigned Amazon sellers, submit this petition to demand fair, consistent, and contractually compliant reimbursement for inventory lost or damaged while under Amazon’s Fulfillment by Amazon (FBA) control.

This request is based exclusively on Amazon’s own published policies and the binding terms of the Amazon Business Solutions Agreement.

 
The Issue
Once inventory is delivered into Amazon’s FBA network, sellers relinquish all control over storage, handling, shipping, transit, and delivery. From that point forward, Amazon maintains sole possession and operational responsibility.

Despite this, sellers are increasingly denied reimbursement for units that Amazon itself refunds or replaces for customers. These refunds or replacements inherently confirm that the item was lost or damaged during Amazon-managed fulfillment.

This practice shifts Amazon’s fulfillment losses onto sellers, despite sellers having no involvement in, or ability to prevent, the failure.

 
Amazon’s Policy Commitments
Amazon’s FBA Inventory Reimbursement Policy states:

If an item sent to Amazon as part of FBA is lost or damaged at an Amazon facility or by an Amazon-operated carrier, Amazon will reimburse the seller.
If Amazon refunds or replaces an FBA order, reimbursement is calculated based on the refund or replacement value, minus applicable fees.
When Amazon refunds or replaces a customer order, Amazon has already determined that the item did not arrive in acceptable condition. That determination alone confirms a fulfillment failure occurring under Amazon’s control.

 
Transit and Fulfillment Responsibility
Transit is the movement of goods. Once inventory enters the FBA network, all movement—from warehouse handling to carrier selection to final delivery—is exclusively managed by Amazon.

Sellers do not control packaging, carriers, routing, delivery timing, or customer interactions. Any loss or damage occurring prior to customer receipt necessarily occurs during Amazon-managed fulfillment.

 
Refunds Confirm Responsibility
Amazon regularly issues customer refunds under its customer service policies. While this protects customers, it also represents an acknowledgment of a fulfillment failure.

Denying seller reimbursement after issuing a customer refund creates an internal inconsistency. Amazon accepts responsibility to the customer while rejecting responsibility to the seller for the same transaction.

 
Contractual Obligations Under the BSA
The Amazon Business Solutions Agreement requires Amazon to comply with its Program Policies and assigns Amazon responsibility for the handling, storage, delivery, and customer service of FBA inventory.

Reimbursement for inventory lost or damaged under Amazon’s control is therefore a contractual obligation, not a discretionary decision.

 
Our Requests
We respectfully request that Amazon:

Honor the FBA Inventory Reimbursement Policy as written
Reimburse sellers when Amazon refunds or replaces FBA orders due to loss or damage
Apply consistent definitions of transit and fulfillment responsibility
Provide clear, transparent explanations for any reimbursement denial
 
Conclusion
Fair reimbursement is essential to a balanced and sustainable marketplace. When Amazon confirms a fulfillment failure by refunding a customer, reimbursement to the seller must follow.

Signed,
Amazon Sellers

avatar of the starter
ASGTG Sellers GroupPetition StarterASGTG is a collaborative forum for Amazon Sellers, aimed at assisting them in navigating the challenging terrain of selling on Amazon.

The Decision Makers

Jeff Bezos
CEO, Amazon.com

Supporter Voices

Petition Updates