Sellers beware... Amazon.co.uk helps perpetuate fraud with their A-Z guarantee.

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A warning to all sellers operating on Amazon.co.uk,
... Amazon.co.uk helps perpetuate fraud with their A-Z guarantee


Amazon's A-Z guarantee program is apparently designed to help buyers in cases where they have not received an item or they have received an item that is "not as described". Well, fraudulent buyers have found ways to exploit this scheme at seller's expense and not only is Amazon siding with the frauds, but they are helping them con small businesses whilst hiding behind the clause in their terms and conditions:
4. Amazon's right of recovery. Amazon retains the right to seek reimbursement from
the seller if it, in its sole discretion, decides to reimburse the buyer under the
terms of the Amazon A-z Guarantee described in clause C.1 or Amazon receives a
chargeback from the buyer's credit/debit card issuer for the amount of the buyer's
purchase from the seller.

Our story - we are a small business based in London. We sell on Amazon, eBay, Playtrade & Tazbar and have good histories with each.
We have been selling on Amazon.co.uk the longest (since 2006) and have noticed an increase in buyer fraud. This is what happened to us just this week and I wanted to alert
other small businesses operating on Amazon.co.uk of this:

30th March, 2009: We sold a buyer a used Playstation 3 console with all necessary accessories.
It was described as "Used - Good" and we even added a complementary bag.
Total sale price: £220.00 delivered.

1st April, 2009: The buyer contacted us to say that a USB charger for one of the controllers was missing from the "package".
There were 3 people who were present when the console was packed including myself. I had personally watched
each item being placed into the console travel bag - it really was packed & presented very well. We responded
to the buyer exactly where that cable had been packed and asked him to check.

1st April, 2009: The buyer filed an A-Z guarantee claim saying that the item was
"Not as described - Missing parts/components". We responded the above statement via Amazon.co.uk's online form.
We also told the buyer that if they were not happy with the purchase, they were welcome to return the goods
& provided the address (which is on the invoice, as are our T&Cs in accordance with DSR).
8th April, 2009: An empty C6 envelope is delivered to us via Royal Mail First Class Recorded delivery - it was signed for by our building mailroom staff. Puzzled, I keep this envelope in my desk drawer.

16th April, 2009: Amazon inform us that the buyer informed Amazon.co.uk that he has returned the Playstation 3 console via Royal Mail First Class Recorded Delivery for a full refund. He says that it was successfully delivered & signed for and provides a tracking number. This number corresponds to the envelope mentioned above. We relay the above information to Amazon.co.uk, scan the envelope and email the picture. The envelope was empty and cost £1.14 to send. For the record, a Playstation 3 console costs around 7KG and we had to courier the package and enhance the insurance to £210. Royal Mail's Recorded Delivery service insures up to £39.

21st April, 2009: Response from Amazon.co.uk, "We will contact the buyer regarding the return of the item and request proof of shipping which should show the weight of the item at the time it was shipped. If the buyer can produce a receipt that shows the order was sent back to you with the correct address and shipping weight you could be held responsible for the claim."

10th May, 2009: Follow-up from Amazon.co.uk, "The buyer has provided us with a shipping receipt that shows that the return was sent to your address with a weight of 6.030 kg. The receipt also shows it was shipped on 07/04/09 and the cost was GBP 14.57. As they have proven that the item was shipped back to you we will need you to issue them a full refund. If you need a copy of the receipt we would suggest that you contact the buyer directly as we are not able to send attachments through our claims system. Please issue a full refund for this buyer within the next two business days. Failure to do so may result in a debit to your Amazon.co.uk Payments account."

11th May, 2009: We reiterated to Amazon.co.uk that the console had not been returned and that the buyer had sent them a fake scan. We asked that they request the original of the receipt from the buyer - which he buyer would undoubtedly be unable to provide as that tracking number corresponds to an envelope. I pointed out that it had taken the buyer almost 3 weeks to respond to a request for a receipt and that he claims to have sent a £210 item via a service that insures it to £39.

11th May, 2009: (One business day after Amazon.co.uk had said that they would allow two) Amazon.co.uk issued the buyer a full refund of £220 from our account. They now no longer respond to any emails regarding the issue.

We have received legal advice regarding this issue and will pursue the buyer for the funds - the case may end up in court. Amazon.co.uk's T&C protect them from being sued over the matter - however, I feel that they cannot be allowed to rob people of their money with no repercussions. We are considering approaching BBC Watchdog about this issue and would like to invite any other businesses who have been through a similar case, to share their stories too - perhaps we can all put something together?
For any other businesses operating on the site, please be wary of A-Z guarantee claims & remember that Amazon.co.uk have little / no regard for their sellers/merchants.


Thank you for reading.
 
If you feel a crime has been committed, I would get in touch with the police & have them investigate. Fraud is illegal & neither the purchaser nor Amazon will be able to hide behind whatever rules they have set for themselves.
 
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If you feel a crime has been committed, I would get in touch with the police & have them investigate. Fraud is illegal & neither the purchaser nor Amazon will be able to hide behind whatever rules they have set for themselves.

Amazon.co.uk have iron-clad Terms and Conditions. There is no way that we can challenge them on those and the FSB don't advise it either. We are going to report the buyer to the local police and see if they can help and also begin court proceedings to recover the cost of the PS3.
 
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Take the buyer to the small claims court, I've done the same in the past to fraudsters who abuse the chargeback system.

Also report Amazon to trading standards, it sounds like they might be infringing on UK law which is a common practice of large US businesses (eBay / PayPal are the usual suspects for this).

Best of luck anyway, its about time the playing field was levelled between consumer and retailer.
 
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From your story above, the current Amazon system would seem wide open to abuse. I would be surprised if other sellers haven't also fallen victim.
 
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From your story above, the current Amazon system would seem wide open to abuse. I would be surprised if other sellers haven't also fallen victim.

I would be surprised too. A Google search has revealed similar stories about amazon.com, but I have yet to find any on amazon.co.uk. If there are any other UK companies who have been through the same thing and maybe have already registered a case with Trading Standards, do let us know, as perhaps we can add strength to your case/quote you in ours?

The worst part is that the "buyers" are also allowed to simply get away with it and can continue to repeat the scam. If there was a website where sellers who have been victims to fraudulent chargebacks could publish the fraud's details, then it could potentially protect future sellers. The unfortunate thing is that it would be open to misuse. There could also potentially be negative legal repercussions.
 
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We'll know on Monday 25th May whether we're taking this further (if the "buyer" does not respond to our pre-advice) - so I will update then.
 
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I'll be interested to hear how you get along with this.

I'm no legal expert but I've been to the small claims court several times, representing one of my previous employers. Never 'lost' a case either :D

If you do decide to prosecute, it may be worth asking the mods to move this thread to the 'legal' section of the forum.
 
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It must be difficult for Amazon to be in the middle of this to...if the customer has proof of delivery then what can they do.

I agree its not right and I certainly wouldn't be happy but its one of the problems when dealing with big companies they are to big and they don't care about sellers, just about buyers like ebay do.

You will never win with them so I wouldn't waste your time, your better of putting your energy into your own websites thats what I have done!

Stuart
 
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It is something to be aware of, but that is how these places have to operate.

I have had cause to get in contact with Amazon customer service, and they don't just roll over, they do encourage a dialogue with the customer and the seller.

The problem is the people who do set out to abuse the system, they know the line through it, and perhaps Amazon are a little slow to get a fairer system, or this is just the evolutionary point of Amazon.

Is it wise to sell on Amazon, well yes if you want to launch something, and understand the risks, but day to day selling on it, perhaps not wise.

And maybe that is a good thing, Amazon is large, and no one really wins if some organisation gets too large. For quite some time Amazon operated at a loss, and I would shop on Amazon to do my bit if you will, good concept deserves to be around and good prices.

But over the years Amazon has changed, and it is trying to swallow everything up, so now I shop around, what I cannot understand is why people sell lower on Amazon than their own site, that is silly, and it stops me bookmarking their site to buy from.

Sure I will buy on price for the exact same item generally. So, to beat Amazon you have to do it on price, but don't do it on the market place forever get your own site and do it.
 
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It must be difficult for Amazon to be in the middle of this to...if the customer has proof of delivery then what can they do.

That's what I thought... at first. So then I suggested that they ask the buyer to mail them the original receipt - which is what credit card companies would do (I believe). Their response was to debit our account. Incidentally, I got an email from Amazon.co.uk last night after asking them (for the 2nd/3rd time) to forward the image that the buyer had sent them - you know, the "evidence" that they had used to "decide" the case (which they for some reason couldn't forward via email). I gave them our fax number & postal address. Their response:

"Greetings from Amazon.co.uk.

As mentioned previously, we have reviewed the buyer's claim and the information you
provided. We have determined that this A-to-z Guarantee claim will remain unchanged.


We understand that you may not agree with this decision, but we will not be able to
assist you further with this claim and there will be no further response to your
e-mail messages regarding this transaction.

Thank you for selling with Amazon.co.uk.


---
Ruth
Account Specialist
A-to-z Guarantee Program"

Sigh.
 
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Unfortunately it would not be possible to refer this matter to Trading Standards as Amazon.co.uk is registered in Switzerland, where they have no jurisdiction.

I would also say, there are a *lot* of holes in Amazon's contracts. I can show you things in the Amazon Advantage contract that seem to be endorsing theft of rights.
 
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Had a similair thing happen to myself through ebay and paypal.

Buyer was supposed to return a laptop and instead sent an argos catalogue and ink cartridge lol. Called paypal about it who were about to issue a refund as i 'signed' for the laptop.

Ended up going to police to have it checked and got a crime reference number. In the end paypal sided with me.

A month or so later i got a call from the police man handling the case who informed me that the laptop must have been taken out of the box at the sorting office and changed over which i find hard to believe.

Anyway in the end i was happy i still had my money.
 
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Robert Wheeler said:
Unfortunately it would not be possible to refer this matter to Trading Standards as Amazon.co.uk is registered in Switzerland, where they have no jurisdiction.

Somehow, I'm not surprised about that - Amazon.co.uk are so brazen that it figures they're not regulated by anyone. Although, I should have thought that as they operate in the UK & have a UK address, someone should be able to do something. If Watchdog highlight the story, then I am sure it will force them to make changes to their process. Though I gather the Watchdog just did a story on Amazon (albeit a different kind of story); who knows if they'll investigate another...

Had a similair thing happen to myself through ebay and paypal.

Buyer was supposed to return a laptop and instead sent an argos catalogue and ink cartridge lol. Called paypal about it who were about to issue a refund as i 'signed' for the laptop.

Ended up going to police to have it checked and got a crime reference number. In the end paypal sided with me.

A month or so later i got a call from the police man handling the case who informed me that the laptop must have been taken out of the box at the sorting office and changed over which i find hard to believe.

Anyway in the end i was happy i still had my money.

Firstly, glad to hear that you had luck - obviously Paypal care a little more about their merchants than Amazon do. Though your "buyer" was a little more underhanded than ours, considering that an Argos catalog weighs quite a bit. The "buyer" in our case sent us an empty letter envelope - yet forged a receipt (according to Amazon.co.uk) that says otherwise. That is far more incriminating and allows little room for benefit of the doubt (like your Police officer seems to have given the "buyer" in your case). If the Police act on our complaint, I should think that our "buyer" would be in quite a bit of trouble - as I doubt this is the first time he's done something like this.
 
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This is becoming more and more common by the day with most of the online auction sites, it started when ebay brought out the buyer friendly regs, and others followed suit. It gets abused the same way, and there is nothing the seller can do!

It appears that these companies are not interested as they just want to sell space - and there are always plenty of mugs getting on the escalator so they have no morals when it comes to service - they just want the fees! It really would be poor business sense, as without sellers they have no market - but unfortunately they are of a size that unless there is a mass departure of sellers, then they have little to worry about.

I once had a mail from an ebay rep state 'If you don't want to be ripped off, don't sell on ebay! That is what we do - we are here to make money and we do that well' That left me quite shocked, don't know if he still works there - but at least he was honest!
 
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That is appallingWe have only just started selling on Amazon so shall keep an eye on this.
I would take things further though. At the end of the day its theft isn't it?
 
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It appears that these companies are not interested as they just want to sell space - and there are always plenty of mugs getting on the escalator so they have no morals when it comes to service - they just want the fees! It really would be poor business sense, as without sellers they have no market - but unfortunately they are of a size that unless there is a mass departure of sellers, then they have little to worry about.

Tell me about it - Amazon have actually charged us £5.00 for giving the refund - a fee they call "refund commission" - talk about insult to injury! They really just don't give a damn at all... I think sellers are just icing on the cake for Amazon. Ebay on the other hand, I would have thought they would have been a little more seller-friendly.
 
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Good luck with your case Zeone, the buyer should not be allowed to get away with this. With luck the Police will prosecute and Im 99% certain you will win in court.
 
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Just wanted to update this thread after mine & my colleague's visit to Colindale police station. We waited about 2 hours to see an officer - only to be told that apparently it's a civil matter & that (long story short) there's no criminality involved. I was quite surprised, but my colleague explained to me that it would apparently be too much paperwork for them to investigate the case! So much for protect & serve, eh?
 
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Well thats awfull Zeone, i have seen some scams in my time and this one takes the biscuit, i would say its a proffesinal gang that will rent somewhere and hit as many people as possible before moving on.
Have you tried to ring Amazon at all i should say you have but we had problems at Xmas and spoke to a chap and he got it resolved the next day, but this case is diffrent to ours.
Hope you get this sorted and the people get caught.
Take care
Pete
 
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The only way you will get anywhere with this is to turn it into a bigger public issue, perhaps through BBC's Watchdog.

I wouldn't be too critical of the Police, they are not resourced to fight cyber-crime with the exception of so-called bigger fish.
 
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you can't let them get away with this.



Amazon Business development
0208 636 9252

Amazon Customer service (get them to call you for free)
help - top right
contact us - bottom right
phone tab
contact seller support - bottom link
by phone tab
call me

they call you - its free



definitely call watchdog

i cant post a url because of some stupid forum rule

watchdog(at)bbc.co.uk

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Thank you rd555 - just gave the Amazon Business Development team a call & the lady I spoke to advised me to open a case via our account... Not sure how that's going to pan out, but she assured me that she'd be writing a follow up email to support.

We will approach Watchdog as a last resort, should the court route fail. I have no doubt that we will be able to prove our case to the judge, but we've been advised that getting our money back is another issue.

To our amazement, the "buyer" has submitted a defence to our claim via the courts. The sheer audacity of it astounds me. Myself and one of the staff members present on the day shall be going to court to put the case forward. The buyer refers to the "copy" of the receipt and we've requested that he bring the original receipt via the court. Hopefully that will highlight to the judge that the reason he is brandishing a copy, is because the original will prove that he is lying.

Thanks again for the info & support :)
 
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glad to be of service. :)

I still recon you should email watch dog. it would take 2 seconds. And companies sometimes quickly solve problems if watchdog run a feature.

could be a fast way of getting your money back.

Your initial description of what happened is concise, and i think people would be interested in a story like this. You are a trader, but you could have been Joe blogs selling his PlayStation because he's short of cash. £220 is a lot of money to get conned so blatantly out of.

Let me know how you get on.
 
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For anyone wanting to know the outcome of this case... On 11/09/09 - we took the buyer to small claims court and won - cost of PS3 & damages.

Thank you to everyone who contributed to the thread for your advice and support :)
 
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RESULT !!! YAY!!!:):)

interesting that Amazon didn't help you. Or did they in the end?

Thanks, rd555 :)

No Amazon didn't help - they couldn't care less. Crippling small businesses that depend on them is what they do best. High volume sellers = competition to them. Once we highlighted the issue to them, they restricted our account and froze our funds. Which was expected - thankfully there was only about £100 in there.

Word of advice to anyone selling on Amazon - make sure they don't have too much of your money at any given period in time; they like to freeze it (it's an interest free loan to them!)

See this rant about Amazon.com from other sellers:


http://www.davepit.com/my-amazon-seller-central-rant/
 
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Excellent news. Have you let Amazon know the outcome of the court case? Its one in the eye for them.

Yes, I have - awaiting their response. Right now, tbh I just want my £100 back - then we can move on. I have nothing but expletives for Amazon - the way they treat their sellers is ridiculous!
 
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well done Zeone! glad to hear it. one for the small guys!

Did it cost you money to go through all the processes to get the money back (courts etc)

I take it your not going back on Amazon :D
 
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well done Zeone! glad to hear it. one for the small guys!

Did it cost you money to go through all the processes to get the money back (courts etc)

Gosh, yes. Money and time I'll never get back! The fee (about £50 if I remember correctly) is passed onto the defendant and the time you can make up in damages if you win. You just need to quantify it down to the last penny.

In hindsight, I wouldn't have bothered, but tbh I was a mixture of shocked/appauled/angry - and I wanted justice dammit!!

Even though I got it in the end, it's all so bitter-sweet because of Amazon.

I take it your not going back on Amazon :D

:D:D:D
 
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Good to see it worked out in the end. Did you let Amazon know the result, and did they offer any comments?

If you put yourself in Amazon or ebay/paypal's position, I don't think there is much more they can do to stop these things happening. At the end of the day they are caught in the middle between buyer and seller, and with both saying different stories I can imagine it must be a nightmare.

Ultimately, they have a clear policy to protect their business which is to side with the buyer subject to certain reasonable conditions. This is not very far away from DSR laws, and makes sense as they belive they have to offer protection to buyers in order to get the business. Amazon have obviously asked themselves if they want the fraudsters to be buyers or sellers on their marketplace, and chosen the obvious answer.
 
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we are a small business selling game consoles and cameras. We sell on Amazon and eBay, and have good feedbacks. Similar buyer frauds happened to us recently.

1) buyer A bought a camera with lenses from us. Weeks later he emailed us and claimed that he only received the lenses, and the camera body was missing.

2)buyer B bought a wii console(including game wii sports), one week later, he emailed and said that he only received the game not the console.

3) similar cases keeps coming

How are those possible? We have all the receipt clearly shown the weight when we posted the items. We have started to make claims with the delivery company. However, I personally do not believe the high rate of similar problems that encountered. buyers are really misuse the terms and conditions. And amazon does nothing to help the seller.

Really disappointed with amazon and some of the shameless buyers we encountered.:(
 
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Well done for winning your case.

I would add that Watchdog are no use since they back the consumer and the business is always evil. And that's why the likes Amazon, Ebay etc will always err on the side of the consumer because disgruntled consumers make news. Businesses being ripped off by consumers don't.
 
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A warning to all sellers operating on Amazon.co.uk,
... Amazon.co.uk helps perpetuate fraud with their A-Z guarantee


Amazon's A-Z guarantee program is apparently designed to help buyers in cases where they have not received an item or they have received an item that is "not as described". Well, fraudulent buyers have found ways to exploit this scheme at seller's expense and not only is Amazon siding with the frauds, but they are helping them con small businesses whilst hiding behind the clause in their terms and conditions:
4. Amazon's right of recovery. Amazon retains the right to seek reimbursement from
the seller if it, in its sole discretion, decides to reimburse the buyer under the
terms of the Amazon A-z Guarantee described in clause C.1 or Amazon receives a
chargeback from the buyer's credit/debit card issuer for the amount of the buyer's
purchase from the seller.

Our story - we are a small business based in London. We sell on Amazon, eBay, Playtrade & Tazbar and have good histories with each.
We have been selling on Amazon.co.uk the longest (since 2006) and have noticed an increase in buyer fraud. This is what happened to us just this week and I wanted to alert
other small businesses operating on Amazon.co.uk of this:

30th March, 2009: We sold a buyer a used Playstation 3 console with all necessary accessories.
It was described as "Used - Good" and we even added a complementary bag.
Total sale price: £220.00 delivered.

1st April, 2009: The buyer contacted us to say that a USB charger for one of the controllers was missing from the "package".
There were 3 people who were present when the console was packed including myself. I had personally watched
each item being placed into the console travel bag - it really was packed & presented very well. We responded
to the buyer exactly where that cable had been packed and asked him to check.

1st April, 2009: The buyer filed an A-Z guarantee claim saying that the item was
"Not as described - Missing parts/components". We responded the above statement via Amazon.co.uk's online form.
We also told the buyer that if they were not happy with the purchase, they were welcome to return the goods
& provided the address (which is on the invoice, as are our T&Cs in accordance with DSR).
8th April, 2009: An empty C6 envelope is delivered to us via Royal Mail First Class Recorded delivery - it was signed for by our building mailroom staff. Puzzled, I keep this envelope in my desk drawer.

16th April, 2009: Amazon inform us that the buyer informed Amazon.co.uk that he has returned the Playstation 3 console via Royal Mail First Class Recorded Delivery for a full refund. He says that it was successfully delivered & signed for and provides a tracking number. This number corresponds to the envelope mentioned above. We relay the above information to Amazon.co.uk, scan the envelope and email the picture. The envelope was empty and cost £1.14 to send. For the record, a Playstation 3 console costs around 7KG and we had to courier the package and enhance the insurance to £210. Royal Mail's Recorded Delivery service insures up to £39.

21st April, 2009: Response from Amazon.co.uk, "We will contact the buyer regarding the return of the item and request proof of shipping which should show the weight of the item at the time it was shipped. If the buyer can produce a receipt that shows the order was sent back to you with the correct address and shipping weight you could be held responsible for the claim."

10th May, 2009: Follow-up from Amazon.co.uk, "The buyer has provided us with a shipping receipt that shows that the return was sent to your address with a weight of 6.030 kg. The receipt also shows it was shipped on 07/04/09 and the cost was GBP 14.57. As they have proven that the item was shipped back to you we will need you to issue them a full refund. If you need a copy of the receipt we would suggest that you contact the buyer directly as we are not able to send attachments through our claims system. Please issue a full refund for this buyer within the next two business days. Failure to do so may result in a debit to your Amazon.co.uk Payments account."

11th May, 2009: We reiterated to Amazon.co.uk that the console had not been returned and that the buyer had sent them a fake scan. We asked that they request the original of the receipt from the buyer - which he buyer would undoubtedly be unable to provide as that tracking number corresponds to an envelope. I pointed out that it had taken the buyer almost 3 weeks to respond to a request for a receipt and that he claims to have sent a £210 item via a service that insures it to £39.

11th May, 2009: (One business day after Amazon.co.uk had said that they would allow two) Amazon.co.uk issued the buyer a full refund of £220 from our account. They now no longer respond to any emails regarding the issue.

We have received legal advice regarding this issue and will pursue the buyer for the funds - the case may end up in court. Amazon.co.uk's T&C protect them from being sued over the matter - however, I feel that they cannot be allowed to rob people of their money with no repercussions. We are considering approaching BBC Watchdog about this issue and would like to invite any other businesses who have been through a similar case, to share their stories too - perhaps we can all put something together?
For any other businesses operating on the site, please be wary of A-Z guarantee claims & remember that Amazon.co.uk have little / no regard for their sellers/merchants.

Thank you for reading.

thanks for the information:)
 
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I was selling an item on Amazon as an individual, never even got the payment for it, even after 3 weeks, i contact them about they did not say much other than the cash is in their account, their staff are terrible as well.

Company's like this won't last if they continue to be like this, its stealing, Amazons bosses need to be fined or sentence in jail, for fraud.
 
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I was selling an item on Amazon as an individual, never even got the payment for it, even after 3 weeks, i contact them about they did not say much other than the cash is in their account, their staff are terrible as well.

Company's like this won't last if they continue to be like this, its stealing, Amazons bosses need to be fined or sentence in jail, for fraud.

Oh for goodness sake, don't be ridiculous!
 
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I am not being ridiculous I have been having problems with them, they are terrible their payments take too long.
 
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I am not being ridiculous I have been having problems with them, they are terrible their payments take too long.

If you are going to make statements such as this then at least give the FULL details of what has happened and not the edited highlights to suit your needs.

Amazon, for all it's faults, does not withhold funds without some reason and I suspect that they have a reason for withholding yours....but to suggest that Amazon managers should be prosecuted or even go to jail for something like this is plain silly.
 
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