How To Get Money From Amazon For Lost or Damaged Inventory: From Claims to Arbitration

When Amazon loses or damages your inventory inside their fulfillment centers, the impact hits fast.

Your stock is gone, your cash flow doesn't line up, and there's no clear answer as to why this happened.

A lot of sellers shrug it off as a “part of the business,” but the truth is, those losses can quietly pile up if you don’t handle them properly.

In this guide, I walk through the exact process you should follow to recover your money.

That includes:

1. How to handle cases inside Seller Central,

2. What documentation actually matters, and

3. What to do when Amazon denies responsibility.

I also cover what the process looks like when the situation grows beyond a simple case and arbitration becomes part of the conversation.

Heads up! This walkthrough is based on a video discussion with legal expert David Miller, who explains how sellers can approach these situations in a more structured way.

Whether you’re dealing with a small inventory issue or a much larger loss, understanding the process upfront can help you make better decisions.

Always consult with a licensed professional before taking legal action.

Get In Touch with David

🌐 Website: https://www.damlawfirm.com/

📞 Phone: 646-760-2844 (USA)

📧 Email: Intakes@DamLawFirm.com

▶️ YouTube: @DAM Law Firm - YouTube

📸 Instagram: @davidallenmillerlaw

🎵 TikTok: @davidallenmillerlaw

👍 Facebook: @David Miller - Facebook

💼 LinkedIn: @David Miller - LinkedIn

Now, let’s take a closer look at what you need to do.

Step 1: Start With a Direct Claim in Seller Central

The first thing you should do if Amazon loses or damages your inventory is try to resolve it directly through Seller Central.

Use the built-in tools to open a case or submit a claim for missing, lost, or damaged inventory.

You’ll need to provide:

1. Specific product details (ASIN, SKU)

2. Shipment IDs or FBA reference numbers

3. Proof of inventory being checked in or shipped

4. Any relevant supporting documents like invoices or shipping confirmations

Sometimes, Amazon will reimburse you quickly.

But in many cases, they may reject the claim or fail to respond.

Unfortunately, Amazon typically doesn’t treat these issues as appealable, so if the claim is denied, they won’t let you challenge the decision.

Step 2: Try a Reimbursement Service

If your direct claim doesn’t succeed, you can turn to a third-party reimbursement service like Getida.

Get Getida Account

Such companies specialize in auditing your FBA account and identifying inventory that has been lost or damaged without reimbursement.

Services like Getida often:

1. Work on a commission basis

2. Monitor your shipments regularly

3. File reimbursement claims on your behalf

This option is especially useful for smaller issues or if you want a hands-off approach.

However, they may not be able to help with all cases, especially if the claim is large, has already been denied, or involves specific legal complications.

For a deeper look at how this service works for Amazon sellers, check out: Getida Review - What Is It And How It Works

Step 3: Contact Amazon’s Legal Department (Pre-Arbitration Letter)

If both your personal attempt and third-party services fail, the next step is to send a pre-arbitration letter to Amazon’s outside legal counsel.

This letter notifies Amazon that you are holding them responsible for the missing or damaged inventory and gives them one last chance to settle the matter outside of legal proceedings.

The pre-arbitration letter should include:

1. A summary of the issue

2. The dollar amount of the loss

3. Evidence and timeline of attempts to resolve it

4. A formal request for reimbursement

5. A deadline for Amazon to respond

This step is important because it shows that you’ve made good-faith efforts to resolve the problem.

It also helps in case the issue proceeds to arbitration later.

Step 4: File for Arbitration (When Amazon Refuses to Pay)

If Amazon ignores the pre-arbitration letter or refuses to pay, the next option is to file a demand for arbitration.

This takes the issue out of Amazon’s hands and places it in a legal setting, without going to court.

What is Arbitration?

Arbitration is similar to a trial, but it's a more informal, faster, and more affordable process than traditional court litigation.

Here's how it works:

1. There’s no judge or jury. Instead, a neutral third-party known as an arbitrator reviews the case.

2. Most arbitration proceedings for Amazon-related cases happen remotely, often via phone or Zoom.

3. You usually don’t need to appear in person.

4. Some cases may involve a hearing (similar to a mini-trial), but even these are often virtual today.

Arbitration is handled by independent organizations, and both sides present evidence.

If the arbitrator rules in your favor, Amazon is legally required to pay you the amount determined.

This is often the best path forward for large claims.

For example, if you’re missing $50,000 worth of inventory and it's clearly Amazon’s fault.

You’ll want to make sure your case is well-documented and your evidence is organized.

When to Use Arbitration (And When Not To)

Arbitration is not the first step in the process.

It should only be used as a last resort because:

1. It involves filing fees and legal costs.

2. It can take weeks or months to resolve.

3. It requires legal preparation and communication with Amazon’s attorneys.

While arbitration is cheaper and quicker than court, it’s not cheap overall.

You should only consider this route if:

1. The dollar amount in dispute is high (typically over several thousand dollars).

2. You’ve already tried direct claims and third-party services without success.

3. You have strong evidence showing that Amazon is at fault.

Who Can Help You Get Your Money From Amazon

If you're not comfortable handling arbitration on your own, legal professionals like David Miller can assist with the entire process.

His firm works directly with Amazon’s outside counsel and handles arbitration filings from start to finish.

There are also free consultations available if you're unsure whether your case qualifies.

For smaller reimbursement issues, companies like Getida may be enough.

They have been used successfully by many sellers to get money back for missing or damaged inventory.

Final Notes

Arbitration is not where you begin.

It's where you go after all other options have failed.

The goal is always to resolve the issue as quickly and simply as possible.

But when you're sure that inventory is lost or damaged and Amazon won't make it right, you don’t have to walk away from the money.

Amazon has a responsibility to reimburse sellers when the fault is theirs.

Whether it’s a small shipment or a five-figure loss, you have a clear process to follow; and now, a path to take it further if needed.

If you're looking for legal assistance, reimbursement services, or simply need help understanding your options, there are professionals and tools available to guide you.

-: Reach Out to David Miller :-

🌐 Website: https://www.damlawfirm.com/

📞 Phone: 646-760-2844 (USA)

📧 Email: Intakes@DamLawFirm.com

▶️ YouTube: @DAM Law Firm - YouTube

📸 Instagram: @davidallenmillerlaw

🎵 TikTok: @davidallenmillerlaw

👍 Facebook: @David Miller - Facebook

💼 LinkedIn: @David Miller - LinkedIn

P.S. - I regularly publish new guides featuring legal advice from David. Here’s the latest one: David Miller's Legal Services For Amazon Sellers Review: Amazon Seller Account Lawyer & Attorney