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Filing Arbitration Against Amazon

In the excitement of starting launching their business on Amazon, many sellers are unaware they are giving up important legal rights. One of these rights is the right to file a lawsuit against Amazon for damages. Instead, you are obligated to submit your dispute to binding arbitration with the American Arbitration Association (AAA). While arbitration is advantageous in many ways, you will still need to prove your case in order to get the outcome you are hoping for. As a result, you should strongly consider working with an Amazon arbitration lawyer from ESQgo®, PC. 

What is Arbitration?

When you join Amazon as a seller you agree to submit all disputes with Amazon to binding arbitration via Amazon’s Business Solutions Agreement (BSA). Arbitration is a less formal, more streamlined mechanism for resolving legal disputes than full-blown litigation. Your dispute will be heard by a single arbitrator, or panel of arbitrators, who will act as judges over the dispute. Both sides will put on evidence and make arguments as to why or why not the relief sought should be granted. 

Many people choose arbitration over litigation because they get their dispute resolved more quickly and less expensively. However, there are two important points that Amazon sellers need to understand: 

  1. You have given up your right to file a lawsuit in a court of law; and
  2. Arbitration with Amazon is binding.

Most Amazon sellers have no intention of ever filing suit – after all, litigation can be extremely time-consuming and expensive, with no guarantee of a positive outcome. The second point, however, is often controversial. When arbitration is binding it means that you agree to accept the outcome and understand that you have no further recourse. For many sellers, this can be a bitter pill to swallow if the outcome isn’t what they expected.

How the Amazon Arbitration Process Works

If you need to pursue a claim against Amazon, your arbitration will be governed and heard by the American Arbitration Association. A rough outline of the process is as follows: 

  1. You or your Amazon arbitration lawyer must issue a “Demand for Arbitration” notifying Amazon of your dispute, the nature of the dispute, and what you believe the outcome should be. A copy of the letter must be sent to both Amazon at the address of their registered agent and filed with the American Arbitration Association. 
  2. Your demand will be reviewed by Amazon’s lawyers. Many claims settle at this point if your demand is reasonable.
  3. If you are unable to settle your dispute, it will be heard by AAA arbitrators chosen by the parties.
  4. Once your dispute has been heard by the arbitrators, they will render a binding decision. 

The critical step is in drafting the Demand for Arbitration. A thorough, yet concise, demand will shape the dispute and likely determine your likelihood of success. For this reason, you should consider working with an Amazon arbitration attorney if you are considering a claim. 

Synthetic Arbitration “SynArb®” – A Proprietary ESQgo® Solution

In looking for a way to better serve our clients, we created a unique solution to Amazon arbitration called Synthetic Arbitration® or “SynArb®” for short. SynArb® is a proprietary process that aims to resolve issues before arbitration, saving our clients time and money. Developed specifically – and only – for our clients by ESQgo®, SynArb® has proven to be a successful process time and time again. Contact us today to learn if this unique program is right for you.

Talk to an Amazon Arbitration Lawyer at ESQgo®, PC

If you have a dispute with Amazon, a lawyer from ESQgo®, PC can help you understand your options. From drafting the demand to representing you in your arbitration, we help our clients get the outcome they deserve. Contact us today to discuss your case and how we can help.