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amazon and a liquidated seller

Discussion in 'General Business Forum' started by paulears, Oct 12, 2020.

  1. paulears

    paulears UKBF Big Shot Full Member

    4,531 1,200
    Let me run this past the learned folk on here.

    On the 4th I ordered from Amazon a piece of test equipment - one of their Amazon sellers had it £200 cheaper than everyone else. My amazon business account uses my Santander business account as the funding source.

    It didn't come on the day I expected.

    amazon contacted me to say there was a problem as the seller has not dispatched it - but in an internet chat they told me the money was safe of course as it had NOT been drawn, so if it was not dispatched by this morning it would automatically cancel - so I could order from somebody else.

    They suggested 12.30 would be safe - so I checked and no responses and no dispatch so I tried to cancel and it would not and said I needed to contact the supplier, so I did another chat session. First person put me onto somebody else, who then said they needed to get the support people to contact me by email?

    They tell me the seller went into liquidation in August and they cannot cancel the transaction and that I should contact the bank to prevent them drawing the pre-authorised 800 quid. The bank cannot do that, they tell me, as while they could prevent ANY Amazon tranaction, there is no guarantee that the liquidated company could not draw it on their account that I don't have details of, to prevent it.

    amazon's reassurance that I should not worry as it would cancel was wrong, and I now should contact the liquidated company to get them to cancel everything, but as they ignore emails probably because nobody is reading them, the 800 is potentially able to be drawn.

    What a mess. If the liquidator is on the ball, they could presumably take my 800 as a non-secured creditor at some point. Anyone know if there's any time period for this kind of thing. No item and potentially they still get the money?
     
    Posted: Oct 12, 2020 By: paulears Member since: Jan 7, 2015
    #1
  2. kulture

    kulture UKBF Legend Staff Member

    8,135 2,256
    Amazon are having a laugh with you. It is Amazon that draws down the money. It is Amazon that runs the merchant account and Amazon only hand the money over to the retailer twice a month. Indeed they only hand over money on items marked as dispatched. So it is Amazon who has complete control of this money.
     
    Posted: Oct 12, 2020 By: kulture Member since: Aug 11, 2007
    #2
  3. paulears

    paulears UKBF Big Shot Full Member

    4,531 1,200
    Really! This is a snippet of what they tell me
    Is a marketplace seller maybe something different? I don't know the differences?
     
    Posted: Oct 12, 2020 By: paulears Member since: Jan 7, 2015
    #3
  4. kulture

    kulture UKBF Legend Staff Member

    8,135 2,256
    Amazon is trying to avoid responsibility. I am a marketplace seller and I know that it is Amazon that does all the money processing. They do a pre-auth at the time of the order and take the money at the time the seller marks the item as dispatched. Presumably this ia all automated. So if the seller logs into their account and marks an order as dispatched then the money is taken. Since the seller is in liquidation I would suggest that Amazon should suspend their account and thus stop them marking an order as dispatched. Anything less than this would be negligence.
    The seller does not have your payment details. Only Amazon has this. Only Amazon can actually call down the payment.
    I have not read through the thousands of pages in the Amazon marketplace seller agreement, but I bet that it has the fairly standard clause that should protect them (and you) that says that accounts are suspended if a company goes into liquidation.
    Your problem is that you are dealing with frontline support who just goes by scripts. You have triggered the "my order has not yet been delivered" script. Perhaps you might get a different answer if you managed to trigger the "your marketplace partner has gone into liquidation" script.
     
    Posted: Oct 12, 2020 By: kulture Member since: Aug 11, 2007
    #4
  5. Matthew J

    Matthew J UKBF Contributor Free Member

    88 5
    Just wondering, is the payment in Amazn escrow? Sometimes, they charge from the account, but it is returned if not completed.
    In any case, the csr may just be incorrect.
    I would lodge a complaint asap, tbh Amazon are normally pretty good with refunds.
     
    Posted: Oct 12, 2020 By: Matthew J Member since: Oct 16, 2019
    #5
  6. paulears

    paulears UKBF Big Shot Full Member

    4,531 1,200
    I done;t actually need the refund as they've not taken the money - but just warned me the seller could draw it and they have no power to close an order? My concern is that I've ordered from another supplier and yet the amazon order could still be taken, and as they're in liquidation, I doubt I'd get the equipment. I really appreciate the help here folks - thanks very much.
     
    Posted: Oct 12, 2020 By: paulears Member since: Jan 7, 2015
    #6
  7. Matthew J

    Matthew J UKBF Contributor Free Member

    88 5
    Very weird.

    If it hasn't been sent, contract is voidable, and you have to be returned to the state you were in before you entered contract. Now, thing is, the contract is with the third party, not Amazon, so they exclude themselves from this type of contractual liability.

    But, if Amazon have a company listed that went into liquidation, and they are still facilitating payments and making profit on behalf of that company, and have continually listed that company, then I would say they have breached consumer law.
    In addition, could they be responsible for facilitating a contract under misrepresentation? Bit of a shot in the dark with that part.

    But tbh, and maybe another legal person with more experience than myself can help more, but Im pretty sure a contract cannot even exist with a company that has liquidated, so from what I can see, it is Amazon's responsibility for not protecting you from this.

    Is the item FBA, this could make a difference..?

    I reckon you've just been given bad advice, get onto complaints asap as there is no way they can accept an order for a liquidated company and have you pay the price, surely not.
     
    Posted: Oct 12, 2020 By: Matthew J Member since: Oct 16, 2019
    #7
  8. paulears

    paulears UKBF Big Shot Full Member

    4,531 1,200
    Posted: Oct 12, 2020 By: paulears Member since: Jan 7, 2015
    #8
  9. Matthew J

    Matthew J UKBF Contributor Free Member

    88 5
    Regarding the seller, this looks like financial crime, meaning police investigation.

    As for Amazon, they must be under some sort of duty to protect their customers from fraud etc. Those comments will help you, but could also work against you.

    This could work out quite well for you if you follow it though, money back plus compensation.
    Mention that to Amazon and see what they say.

    Request to move this to the legal forum I reckon, they'll be able to give you a better answer
     
    Posted: Oct 12, 2020 By: Matthew J Member since: Oct 16, 2019
    #9
  10. paulears

    paulears UKBF Big Shot Full Member

    4,531 1,200
    I never get that lucky - but it does seem a very strange set of circumstances. P
     
    Posted: Oct 12, 2020 By: paulears Member since: Jan 7, 2015
    #10
  11. Mr D

    Mr D UKBF Legend Free Member

    24,926 3,037
    So no way of cancelling the order by you or Amazon?

    Considering how seller support often enough will ride roughshod over Amazon policies and ignore reality it's surprising they do not have a way of cancelling now. They used to.
     
    Posted: Oct 12, 2020 By: Mr D Member since: Feb 12, 2017
    #11
  12. paulears

    paulears UKBF Big Shot Full Member

    4,531 1,200
    I just think they don't know what to do - although I cannot believe this has never happened before
    This sentence just sort of says 'we have no idea what to do'.
     
    Posted: Oct 12, 2020 By: paulears Member since: Jan 7, 2015
    #12
  13. paulears

    paulears UKBF Big Shot Full Member

    4,531 1,200
    Amazon have cancelled the order - thank goodness. Oddly though, the sellers page is still visible. At least I'm off the hook, but something to remember is that they treat external suppliers very differently.
     
    Posted: Oct 16, 2020 By: paulears Member since: Jan 7, 2015
    #13