How to Get Money Back from Amazon When FBA Loses Your Inventory: Why You Need BOTH Deep Amazon Knowledge AND Trial Experience

Amazon Lost Your Inventory in Their Warehouse – Here’s What Separates Winning from Losing

If you’re selling $50,000 to $100,000 or more in products monthly through Amazon’s FBA (Fulfillment by Amazon) warehouses across the United States, you’ve likely experienced the frustration when inventory disappears. Products you shipped to Amazon fulfillment centers in Texas, California, New Jersey, Pennsylvania, Arizona, Indiana, Kentucky, and other states simply vanish from Amazon’s tracking system, leaving you facing massive financial losses with seemingly nowhere to turn.

The critical questions facing sellers are: How do I get my money back from Amazon? How do I recover losses when Amazon loses my FBA inventory? Can I sue Amazon for lost products? Do I need a lawyer to get money from Amazon for lost inventory? What’s the difference between Amazon Seller Support reimbursement and legal arbitration?

The answers depend entirely on understanding what actually determines success when fighting one of the world’s most powerful companies with some of the most experienced defense attorneys money can buy: you need legal counsel with BOTH deep Amazon knowledge AND proven trial experience—not one or the other, but both together.

Understanding Your Rights Under the Business Solutions Agreement

Here’s something that catches many Amazon sellers off guard: when you opened your Amazon seller account, you agreed to Amazon’s Business Solutions Agreement (often called the Terms of Service). Buried in that agreement is an arbitration clause that fundamentally limits how you can pursue claims against Amazon.

You cannot sue Amazon in regular court for lost inventory. Instead, you’re contractually required to file your claim in arbitration—a private legal proceeding that operates very differently from traditional litigation.

Most sellers don’t discover this until they’re already facing significant losses and trying to figure out how to recover money from Amazon’s FBA warehouse system failures. By then, understanding the arbitration process becomes critical to protecting your business.

Free Educational Resources: Videos on Getting Money Back from Amazon

For sellers just beginning to understand their rights when Amazon loses FBA inventory, CJ Rosenbaum has created over 2,000 educational videos on YouTube covering the basics of getting money back from Amazon. These free resources explain fundamental concepts like:

How Amazon’s reimbursement system works (and when it fails sellers)
The difference between Seller Support reimbursement requests and formal legal claims for lost inventory
What documentation proves Amazon lost your products in their FBA warehouses
Common reasons Amazon denies reimbursement claims and how to overcome them
When you need to escalate beyond Seller Support to recover substantial losses
How to calculate your true losses when Amazon loses FBA inventory
What the Business Solutions Agreement actually says about your rights against Amazon

CJ Rosenbaum’s website, AmazonSellersLawyer.com, receives over 1 million views annually from sellers searching for answers about lost inventory, account suspensions, and how to get money from Amazon. These foundational resources help sellers understand what they’re facing—but they also reveal why recovering substantial losses requires experience that goes far beyond understanding Amazon’s policies.

The Published Authority on Amazon Seller Legal Issues

CJ Rosenbaum, founder of Amazon Sellers Lawyer, has authored six comprehensive books on navigating legal issues for sellers on Amazon:

Your Guide to Amazon Suspensions – How to fight Amazon account suspensions, listing deactivations, and get your selling privileges reinstated when Amazon suspends your account for inauthentic claims, used sold as new violations, and other policy issues
Amazon Sellers Guide: Trademark Law – How to defend against trademark infringement complaints from brands, protect your own trademarks from hijackers, and respond when competitors file trademark complaints against your Amazon account
Amazon Sellers Guide: Copyright Law – How to fight copyright infringement claims on Amazon, defend your listings when brands assert copyright complaints, and avoid inadvertently infringing on others’ copyrights that could get your account suspended
Amazon Sellers Guide: Chinese Intellectual Property Law – How to protect your private label brand from Chinese factories and suppliers who steal your designs, plus strategies to stop intellectual property theft from overseas competitors
Amazon Law Library – Legal documentation proving Amazon is not above the law, including actual cases where sellers successfully sued Amazon and held them accountable for violations
Your Guide to Selling Fashion on Amazon – How fashion designers can avoid trademark and copyright complaints, protect their designs from counterfeiters, and keep their accounts active on Amazon’s fashion marketplace

All books are available for download at amazonsellerslawyer.com/books.

These publications represent years of hands-on experience helping Amazon sellers navigate complex legal challenges. But as CJ Rosenbaum himself emphasizes, understanding Amazon’s systems and policies—even thoroughly enough to write books about them—is fundamentally different from the trial experience necessary to win cases against Amazon’s defense team.

Recognized Industry Authority: Speaking Engagements and Media Features

CJ Rosenbaum has shared his knowledge and experience at major Amazon seller conferences and events worldwide, consistently addressing topics including Amazon account deactivations, listing suspensions, intellectual property complaints, and business protection strategies. His presentations have reached thousands of sellers at:

Major Industry Trade Shows and Conferences:

Prosper Show (Las Vegas, 2018) – How private label sellers protect IP rights where their factories are located, plus Amazon suspensions and account reinstatement
Global Sources Summit (Hong Kong, multiple years) – Sessions on intellectual property protection, avoiding suspensions, and protecting brands from threats in China
Retail Global – Keynote presentations at Las Vegas (2018) and Gold Coast Australia (2018) on brand protection, avoiding suspensions, and getting accounts back
ecomChicago (2018) – Creating, building, and protecting private label brands as tangible assets
Sellercon – Featured speaker on Amazon seller legal issues, account suspensions, and reinstatement strategies
7 Figure Seller Summit (multiple years) – Sessions on business exits, brand protection, and protecting Amazon income from suspensions
European Seller Conference (2019) – Protecting Amazon income, avoiding suspensions, and defending against hijackers
ASD Market Week – Presentations on First Sale Doctrine, seller rights, and account protection
Cosmoprof (2022) – Beauty industry trade show addressing Amazon marketplace issues and brand protection
Golf Industry Show (IGES) – Educating product managers and brand owners on intellectual property protection and First Sale Doctrine
Stimulate: A B2B Sexual Wellness Trade Show (Nashville) – Addressing marketplace legal issues, account protection, and brand defense for sexual wellness retailers and online sellers
Midwest e-Com Conference (2017) – Reinstatement strategies for suspended sellers, IP and non-IP suspensions
Manchester Online Seller Conference (2018, UK) – Avoiding suspensions and getting accounts reinstated
Just One Dime (2018) – Amazon suspensions, intellectual property issues, and non-IP suspensions
KLIK Box Summit (2021) – Amplifying brand value for exits and investors
Seller Fest Israel (2019) – Protecting Amazon income and avoiding suspensions

Major Media Outlets Featuring CJ Rosenbaum:

CJ has been quoted and featured in leading publications including The New York Times, Forbes, The Wall Street Journal, Bloomberg, CNBC, FOX Business, Entrepreneur, Inc., The Huffington Post, International Business Times, Ecommerce Bytes, Daily Journal, The Seattle Times, The Denver Post, Security Week, and Tripwire for his work with Amazon sellers and e-commerce business owners.

Podcast Interviews:

Amazing FBA Podcast (multiple episodes on account suspensions, intellectual property protection, and Amazon legal issues)
EcomCrew Podcast (discussing common Amazon issues and seller rights)
10K Collective Podcast (Amazon hijackers and brand protection strategies)
Product Launch Hazzards Podcast (IP security, trademark protection, and digital rights management)
The Amazon Seller Podcast Private Label Show (addressing price gouging complaints and business reinvention)
Amazon Seller School Podcast (Q&A on suspensions, bans, private label issues, and seller rights)
What The Teck Podcast (seller mistakes, copyright regulations, and trademark issues)

This extensive speaking platform and media recognition demonstrates deep experience in Amazon seller issues and reflects decades of actual case experience representing sellers in complex legal matters.

Trial Advocacy Training: Teaching Lawyers How to Win in Court

Beyond representing clients in hundreds of trials over 30 years, CJ Rosenbaum has trained attorneys on trial advocacy skills throughout New York State and across the United States and Canada. His teaching experience includes:

New York State Bar Association: CJ has held leadership roles in the New York State Bar Association and trained attorneys on trial advocacy techniques in cities across New York State, teaching lawyers the courtroom skills necessary to effectively present cases, examine witnesses, and win verdicts.

American Association for Justice: Through the American Association for Justice (formerly the Association of Trial Lawyers of America), CJ has conducted trial advocacy training programs for attorneys in major cities across the United States and Canada, including New York, Chicago, Montreal, Maryland, Florida, and Los Angeles. These programs taught practicing attorneys advanced trial techniques, witness preparation, evidence presentation, and courtroom strategy.

Why Trial Training Experience Matters:

The fact that CJ has trained other lawyers on trial advocacy demonstrates several critical points:

Mastery of trial skills – You cannot teach what you haven’t mastered through extensive practice
Recognized competence – Bar associations and legal organizations only select attorneys with proven trial records to train others
Deep understanding – Teaching requires breaking down complex trial skills into learnable components, demonstrating comprehensive understanding
Commitment to the profession – Investing time to train other lawyers shows dedication to improving trial advocacy beyond individual casework

Combined with his 30 years of actual trial experience, this teaching background confirms the depth of trial knowledge and courtroom skills that CJ brings to representing Amazon sellers in arbitration against Amazon’s highly experienced defense teams.

What The Research Shows: Nothing Replaces Actual Courtroom Experience

The Uncomfortable Truth About Trial Skills Development

When discussing how trial skills actually develop, Brian Malkin, senior trial counsel with over 30 years of litigation experience and a member of the patent bar, candidly admits that when attorneys start their careers, their intuitive skill might be “a five on a scale of one to 10.”

Trial work, he notes, “takes trial and error and improves with experience.”

This honest assessment reveals an important truth: trial advocacy is a skill learned through repeated experience in actual courtrooms and arbitration hearings, not from studying contracts or understanding business policies.

The implications for Amazon sellers are significant. When you’re trying to recover substantial money for lost FBA inventory, the lawyer representing you is facing Amazon’s highly paid, extensively experienced defense attorneys. The experience gap directly determines outcomes.

Why Amazon Knowledge Alone Fails Against Experienced Defense Counsel

The Critical Distinction Sellers Must Understand

CJ Rosenbaum makes this point explicitly: “Even if a lawyer knows the Business Solutions Agreement well, they are the wrong choice for a high-value arbitration against Amazon if they have never actually tried a case to verdict.”

This isn’t about diminishing the importance of understanding Amazon’s systems. It’s about recognizing that knowledge of Amazon’s policies is table stakes—the bare minimum. What determines whether you actually recover your money is whether your counsel can effectively present that case against Amazon’s experienced litigation team.

What Experienced Trial Counsel Knows That Others Don’t

Brian Malkin describes their approach to preparing clients for arbitration: “We make the client comfortable, ensure they understand the issues and exhibits, and choreograph their testimony for succinct communication to the arbitrator.”

The goal, as Malkin states, is “to ensure the client has their best day in court during the arbitration hearing.”

This preparation reflects lessons learned over decades of actual trial work:

Strategic choreography based on what actually persuades arbitrators
Evidence presentation refined through hundreds of hearings
Anticipation of defense strategies learned from facing them repeatedly
Testimony preparation that comes from years of watching witnesses succeed and fail

These skills cannot be taught in law school or learned from books. They develop only through extensive time in actual courtrooms and arbitration proceedings.

The Strategic Chess Game: Experience vs. Theory

Why Anticipation Separates Winners from Losers

CJ Rosenbaum emphasizes that “being good at the end game is necessary to be effective at the beginning stages, including preparing the client and anticipating Amazon’s defenses and excuses.”

Brian Malkin agrees, comparing the process to chess: experienced trial counsel can “anticipate Amazon’s best moves and counter them.” Without that experience, he warns, “a lawyer will not know the best arguments or evidence.”

This strategic depth affects every stage:

Initial demand letters that demonstrate you understand the legal landscape
Discovery requests that target documents experienced counsel knows exist
Deposition strategies honed through questioning hundreds of witnesses
Evidence organization based on what actually moves arbitrators to award money
Argument structure refined through seeing what works and what fails

The Reality of Facing Amazon’s Defense Team

Here’s what many sellers don’t consider: Amazon’s defense attorneys evaluate opposing counsel as carefully as they evaluate claims.

CJ Rosenbaum explains that experienced trial counsel’s “reputation carries weight with Amazon.” When Amazon’s legal team sees truly experienced trial lawyers on the other side, they recognize counsel who can effectively present cases.

Conversely, CJ Rosenbaum and Brian Malkin note that “Amazon’s defense attorneys are unlikely to take a claimant’s counsel seriously if they have never tried a case to the end, potentially devaluing the claim and leading Amazon to settle only for nuisance value.”

Amazon’s experienced defense lawyers exploit inexperienced opposing counsel. They know which attorneys lack the trial skills to effectively threaten them with substantial arbitration awards, and they adjust settlement offers accordingly.

The Skill That Separates Experienced Trial Lawyers: Pivoting Under Pressure

When Amazon’s Defense Team Throws Curveballs

No matter how well prepared you are, Amazon’s experienced defense counsel will introduce surprise evidence, raise unexpected defenses, and employ strategies specifically designed to exploit inexperienced lawyers.

Brian Malkin describes the ability to pivot as “a valuable skill for a trial attorney, sometimes requiring a ‘360’ change in strategy, which relies on imagination and creativity built over time.”

This isn’t abstract legal theory. It’s the difference between recovering your money and walking away with nothing. As CJ Rosenbaum points out, “having seen countless cases through to the end makes their initial demand for arbitration and discovery questions better and more focused, as they know what is needed for a final judgment or award.”

Inexperienced lawyers cannot pivot effectively when Amazon’s highly paid, extensively experienced defense team exploits weaknesses. They lack the mental repository of strategies and the courtroom-tested judgment necessary to adapt when the unexpected occurs.

The Discovery Phase: Where Cases Are Won or Lost

Why Comprehensive Discovery Planning Requires Trial Experience

Brian Malkin explains that “experienced lawyers know how to put a case together, starting with a comprehensive discovery plan, whereas inexperienced lawyers may not understand the importance or goals of discovery.”

Discovery—the formal exchange of information and documents—determines whether you can prove Amazon lost your inventory and owes you money. Experienced trial counsel knows:

Which specific Amazon warehouse documents exist and how to request them
What internal Amazon communications reveal about inventory handling
Which Amazon employees have relevant knowledge and what to ask them in depositions
How Amazon’s tracking systems work and what data proves losses
Which experts can testify about Amazon’s FBA warehouse operations and standard practices

This knowledge comes from repeatedly facing Amazon’s defense team, understanding their document production strategies, and knowing from experience which evidence actually persuades arbitrators.

Without trial experience, lawyers miss critical evidence or—equally damaging—request so much irrelevant information that the truly important documents get lost in the noise.

Direct Warnings from Experienced Trial Counsel

The Reality Check Every Amazon Seller Needs

CJ Rosenbaum issues this stark assessment: “Potential clients should not hire younger or non-trial lawyers, as they will lack the ability to pivot and will be less effective in the early stages of a case.”

Brian Malkin reinforces this concern, noting that “inexperienced lawyers might not even know the right questions to ask clients early on, leading to surprises at trial against Amazon’s experienced legal team.”

This isn’t about age—it’s about actual trial experience. A younger attorney who has tried dozens of cases to verdict has more relevant experience than an older attorney who has never actually completed a trial.

The Essential Questions to Ask Any Prospective Lawyer

CJ Rosenbaum advises sellers to specifically ask: “How many verdicts and successful awards have you obtained?”

This question cuts through marketing claims and focuses on proven results. When you’re facing Amazon’s highly paid, extensively experienced defense attorneys, you need lawyers who can point to specific cases where they’ve obtained substantial verdicts or arbitration awards.

Demand specifics:

Exact number of cases tried to completion (not settled, not dismissed)
Specific arbitration awards obtained and amounts recovered
Experience with Amazon arbitration specifically
Examples of cases against well-funded corporate defendants with experienced counsel
The circumstances where they’ve had to pivot strategy mid-hearing

Don’t accept vague responses. Experienced trial counsel can provide concrete examples because they’ve been tested in actual courtrooms and arbitration hearings.

Understanding Arbitrator Dynamics: A Skill Developed Through Experience

The Myth of Complete Neutrality

While arbitrators are supposed to be neutral, that’s not always the reality. Some arbitrators demonstrate inclinations—whether conscious or unconscious—to favor large corporations like Amazon over individual sellers.

Experienced trial counsel develops the ability to recognize and address these dynamics. Through years of presenting cases before different arbitrators, experienced lawyers learn:

How to read an arbitrator’s reactions and adjust strategy accordingly
When an arbitrator seems predisposed to favor Amazon or large businesses
Techniques to reframe arguments when facing a skeptical arbitrator
How to present evidence that overcomes pro-corporate biases
When to emphasize different aspects of the case based on arbitrator temperament

Brian Malkin’s description of sometimes requiring “a 360 change in strategy” often applies to adjusting for arbitrator dynamics that become apparent during the hearing.

Why Inexperienced Lawyers Miss Critical Signals

Lawyers without extensive trial experience often fail to recognize when an arbitrator is leaning toward Amazon. They miss subtle signals in questions, reactions to evidence, or comments during proceedings.

More importantly, even when they sense skepticism, inexperienced lawyers lack the courtroom-tested strategies to effectively respond. They don’t know which arguments to emphasize, which evidence to highlight, or how to reframe their case to address the arbitrator’s concerns.

This skill gap becomes fatal when facing Amazon’s experienced defense counsel, who absolutely recognize these dynamics and exploit them against inexperienced opposing lawyers.

High-Stakes Cases Against Well-Funded Corporate Defense Teams

When Substantial Money Is at Stake

The transcript references a recent case—a “million-dollar” arbitration that was tried and is awaiting the arbitrator’s final decision. These high-value cases are not uncommon for larger Amazon sellers who ship substantial inventory to FBA warehouses across the United States.

When you’re fighting for six or seven figures in lost FBA inventory against Amazon’s highly paid, extensively experienced defense team, the experience gap becomes determinative.

The difference between experienced trial counsel and lawyers who understand Amazon but lack trial experience often means:

Complete recovery versus minimal settlement
$800,000 arbitration award versus $50,000 nuisance settlement
Recovered attorney fees versus substantial out-of-pocket costs
Successful presentation despite arbitrator skepticism versus case dismissed

The Preparation Process That Reflects Years of Trial Experience

How CJ Rosenbaum Approaches Case Strategy

CJ Rosenbaum, while also highly experienced in trials, works backward from the desired closing argument or story of the case, filling in details to ensure the arbitrator reaches the intended conclusions.

This strategic approach only comes from having seen countless cases through successful completion. It ensures that from day one—from the initial demand for arbitration through every discovery question—the case is built with the end game in mind.

How Brian Malkin Prepares Based on Trial Experience

Brian Malkin describes preparing cases by setting a plan based on the discovery schedule, which involves the exchange of information and documents between parties.

His approach reflects lessons learned from decades in courtrooms: understanding what information you need, when you need it, and how it fits into the ultimate presentation before the arbitrator.

Both approaches are based on extensive trial experience and help them anticipate what arguments Amazon’s highly experienced lawyers are likely to make, then prepare to counter those arguments before they’re even raised.

The Investment Reality: What Truly Protects Your Business

Why Trial Experience Costs More—And Why It’s Worth It

Experienced trial attorneys typically charge more than lawyers who primarily handle administrative Amazon issues or who lack extensive courtroom experience. The reason is simple: trial skills are rare and developed over decades of actual practice.

Consider the mathematics honestly:

Lost inventory claim value: $250,000 – $1,000,000+
Typical recovery with experienced trial counsel: 60-90% of claim value
Typical recovery with inexperienced counsel: 10-20% of claim value (nuisance settlements)
Difference in recovery: $300,000 – $700,000+
Additional cost for experienced counsel: $20,000 – $50,000

The investment in lawyers with proven trial experience against well-funded corporate defendants pays for itself many times over through:

Higher settlement offers (Amazon takes experienced trial counsel seriously)
Better arbitration awards (superior case presentation and strategy)
Ability to overcome arbitrator bias toward large corporations
Effective pivoting when Amazon’s defense team introduces surprises
Recovered attorney fees (often available in successful arbitrations)

Beyond Lost Inventory: Comprehensive Trial Experience in Business Litigation

When Trial Skills Apply to Other Legal Challenges

Experienced trial counsel handles various legal challenges that successful Amazon sellers encounter, all of which benefit from actual courtroom experience:

Contract disputes with third-party service providers
Defense when sellers are sued for non-payment
Intellectual property disputes
General business litigation arising from e-commerce operations

As CJ Rosenbaum explains, experienced counsel “can handle business litigation for sellers who feel they were wronged and are being sued for non-payment, offering advice on whether a contract was valid or if legal loopholes exist.”

The transcript references a recent case involving a recall audit that “went bad,” where the firm is defending a seller who refused payment, claiming “the auditing company did a terrible job and failed to meet essential contract terms.”

The common thread: trial experience applies across all types of business disputes. The skills developed through years in actual courtrooms—strategic thinking, evidence presentation, witness preparation, pivoting under pressure, reading judges and arbitrators—transfer to any litigation context.

Frequently Asked Questions About Recovering Money from Amazon for Lost FBA Inventory

How do I get money back from Amazon when they lose my inventory in their warehouses?

You must file a formal arbitration claim against Amazon under the Business Solutions Agreement (Terms of Service). This is completely different from Seller Support reimbursement requests—it’s a legal proceeding where you present evidence that Amazon lost your inventory shipped to their FBA warehouses and owes you money for those losses plus related damages. Success requires presenting your case effectively against Amazon’s highly paid, extensively experienced defense attorneys. Most Amazon sellers don’t realize they cannot sue Amazon in regular court—they must use arbitration.

Can I sue Amazon in court when they lose my FBA products?

No. The Business Solutions Agreement (Terms of Service) you agreed to when opening your seller account requires arbitration for disputes about lost inventory. You cannot file a lawsuit in regular court for lost FBA products—you must pursue your claim through arbitration, where different rules and procedures apply. This surprises most sellers who discover this restriction only after Amazon has lost substantial inventory.

What is arbitration and how is it different from suing Amazon?

Arbitration is a private legal proceeding where a neutral arbitrator (not a judge or jury) hears evidence and makes a binding decision about whether Amazon owes you money and how much. Unlike court cases, arbitration happens privately, follows different procedural rules, and the arbitrator’s decision is usually final with very limited appeal rights. The arbitration process typically takes 12-18 months from filing through final decision.

How much money can I recover from Amazon for lost FBA inventory?

Recovery amounts depend on your actual losses, related damages, and how effectively your lawyer presents the case. Sellers have recovered amounts ranging from tens of thousands to over one million dollars for lost FBA inventory. However, the amount Amazon offers in settlement versus what you can win at arbitration often differs dramatically based on whether Amazon’s defense team takes your lawyer seriously. Inexperienced counsel typically receives “nuisance value” settlement offers far below actual losses.

Why does trial experience matter more than knowing Amazon’s policies when recovering money for lost inventory?

Amazon’s defense team consists of highly paid, extensively experienced lawyers who have handled hundreds of cases. They know every strategy to minimize payouts. Understanding Amazon’s Business Solutions Agreement is necessary but not sufficient—you need counsel with proven ability to present cases effectively, anticipate defense strategies, and pivot when Amazon’s experienced lawyers throw unexpected challenges. Trial skills develop only through years of actual courtroom and arbitration experience. Even lawyers who know Amazon’s systems inside and out will lose to Amazon’s defense team if they lack trial experience.

What happens if the arbitrator seems biased toward Amazon?

While arbitrators are supposed to be neutral, some demonstrate inclinations—conscious or unconscious—toward large corporations like Amazon. Experienced trial counsel develops the ability through years of practice to recognize these dynamics and adjust strategy accordingly. They know how to reframe arguments, emphasize different evidence, and overcome pro-corporate bias. Inexperienced lawyers often miss these critical signals and lack the courtroom-tested techniques to address arbitrator skepticism, putting your claim at serious risk of dismissal or minimal award.

How long does it take to get money from Amazon through arbitration?

From filing the initial arbitration demand through receiving the arbitrator’s final decision typically takes 12-18 months. The timeline varies based on case complexity, discovery needs, scheduling, and whether Amazon’s defense team employs delay tactics. Experienced trial counsel knows how to keep cases moving forward despite defense strategies designed to prolong proceedings and exhaust sellers’ resources.

What evidence proves Amazon lost my inventory in their FBA warehouses?

Critical evidence includes shipping records showing inventory sent to specific Amazon warehouses, Amazon’s own tracking data and internal documents, inventory reconciliation reports showing discrepancies, financial documentation proving losses, all communications with Amazon Seller Support about missing inventory, and potentially expert testimony about Amazon’s warehouse systems and procedures. Experienced trial counsel knows exactly which documents exist within Amazon’s systems and how to request them effectively during discovery. They understand which Amazon employees to depose and what questions reveal the truth about lost inventory.

How much does it cost to pursue arbitration against Amazon for lost inventory?

The investment varies based on claim complexity and value, but expect $20,000-$50,000+ in legal fees for substantial cases. However, experienced trial counsel often recovers attorney fees as part of arbitration awards, meaning you may get your legal fees paid by Amazon if you win. More importantly, the difference in recovery between experienced trial counsel and inexperienced lawyers typically far exceeds the additional cost—often by hundreds of thousands of dollars. Amazon’s settlement offers to experienced trial counsel are dramatically higher than offers to inexperienced lawyers.

Will Amazon take my lost inventory claim seriously if I hire an inexperienced attorney?

No. Amazon’s highly paid, extensively experienced defense attorneys carefully evaluate opposing counsel. When they see lawyers who have never tried cases to completion, they know these attorneys lack the skills to effectively threaten them with substantial arbitration awards. As experienced trial counsel note, this “potentially devalues the claim and leads Amazon to settle only for nuisance value”—far below what you actually deserve. Amazon’s defense team actively exploits inexperienced opposing counsel’s lack of trial skills.

What does “nuisance value” settlement mean?

This refers to small settlement amounts Amazon offers just to make claims go away—typically a tiny fraction of actual losses. Amazon offers nuisance value when their experienced defense team doesn’t take opposing counsel seriously, believing inexperienced lawyers cannot effectively present cases at arbitration hearings or don’t have the trial skills to overcome defense strategies.

How many cases should my lawyer have actually tried to completion?

Ask for specific numbers. Truly experienced trial counsel should have tried dozens of cases to verdict or arbitration award over their careers. They should be able to describe specific cases, strategies employed, challenges faced, and results obtained. If lawyers hesitate or provide vague responses, that’s a serious warning sign they lack the trial experience necessary to face Amazon’s highly experienced defense team.

What should I ask lawyers before hiring them for my Amazon case?

CJ Rosenbaum advises asking: “How many verdicts and successful awards have you obtained?” Also ask: How many cases have you tried specifically against well-funded corporate defendants with experienced defense counsel? Can you describe times you’ve had to pivot strategy mid-hearing? How do you recognize and address when arbitrators seem biased toward large corporations? What’s your approach to comprehensive discovery planning? Can you provide references from previous clients with substantial recovery claims?

Can lawyers who haven’t tried many cases learn during my arbitration?

Technically yes, but you’ll be paying for their education while facing Amazon’s highly paid, extensively experienced defense team. As trial counsel candidly acknowledge, trial skills start around “a five on a scale of one to 10” and “improve with experience.” Do you really want Amazon’s experienced lawyers exploiting your counsel’s lack of trial experience while hundreds of thousands or millions of your dollars are at stake?

Does the arbitrator’s decision typically favor Amazon or sellers?

Arbitrators decide based on evidence and arguments presented—but presentation quality matters enormously. The same evidence presented by experienced trial counsel versus inexperienced lawyers produces dramatically different results. Additionally, some arbitrators demonstrate inclinations toward large corporations, which experienced trial counsel can recognize and address while inexperienced lawyers often miss these dynamics entirely.

What if Amazon introduces surprise evidence right before the hearing?

This is where trial experience becomes critical. Experienced counsel develops “the ability to pivot,” as Brian Malkin describes it, “sometimes requiring a 360 change in strategy, which relies on imagination and creativity built over time.” Inexperienced lawyers lack the courtroom-tested judgment to adapt effectively when Amazon’s experienced defense team employs these tactics, often resulting in devastating losses.

Should I accept Amazon’s initial settlement offer for my lost inventory?

Consult with experienced trial counsel before accepting anything. Amazon’s initial offers are typically far below what you could recover through arbitration, especially if Amazon’s highly paid, extensively experienced defense lawyers don’t take your counsel seriously. Trial-experienced lawyers command substantially higher settlement offers because Amazon knows they possess the skills to win at arbitration hearings.

The Fundamental Reality: You Need Both Amazon Knowledge AND Trial Experience

When Amazon loses your inventory shipped to their FBA warehouses across the United States, you’re not facing a customer service problem—you’re entering a legal battle against one of the world’s most powerful companies defended by highly paid, extensively experienced attorneys.

Success in arbitration for lost FBA inventory requires counsel who possesses both essential skill sets:

Deep Amazon Knowledge and Experience:

Understanding of FBA warehouse operations, tracking systems, and inventory management
Knowledge of Amazon’s Business Solutions Agreement and arbitration requirements
Experience with Amazon’s typical defenses and strategies in lost inventory cases
Familiarity with Amazon’s internal document structures and data systems
Understanding of which Amazon employees have relevant knowledge to depose
Experience navigating Amazon’s corporate structure and identifying decision-makers

Proven Trial Experience and Courtroom Skills:

Decades of actual trials and arbitrations completed to verdict or award
Ability to prepare witnesses effectively through choreographed testimony
Strategic thinking developed through hundreds of courtroom battles
Knowledge of evidence rules, procedures, and how to get critical documents admitted
Skill in reading arbitrators and adjusting strategy mid-hearing
Experience countering sophisticated defense tactics from corporate legal teams
Proven track record obtaining substantial verdicts and awards

As CJ Rosenbaum and Brian Malkin make abundantly clear through their decades of combined experience: Amazon knowledge without trial skills leaves you unable to effectively present your case. Trial skills without Amazon knowledge leaves you unable to build a winning case. You need both.

When your business’s financial security is at stake, when you’re fighting to recover hundreds of thousands or millions of dollars in lost FBA inventory, you need lawyers who bring over 60 combined years of trial experience PLUS deep understanding of Amazon’s systems—not one or the other, but both together.

The question isn’t whether you need Amazon knowledge or trial experience—it’s whether your counsel has proven mastery of both essential skill sets when facing Amazon’s highly paid, extensively experienced defense team.

Take Action: Protect Your Business with Informed Decisions

If Amazon has lost significant inventory from your FBA shipments, document everything immediately and consult with experienced trial counsel. Time limits apply under the Business Solutions Agreement, and waiting could jeopardize your ability to recover your losses.

Ask the critical question: “How many verdicts and successful arbitration awards have you personally obtained, and how many cases have you tried against well-funded corporate defendants with experienced defense counsel?”

Make your decision based on proven trial experience, courtroom results, and demonstrated ability to win against sophisticated defense teams—not just on understanding Amazon’s policies.

Your Amazon business’s financial recovery is too important to entrust to counsel who will be learning trial skills while facing Amazon’s highly paid, extensively experienced defense attorneys.

About the Authors

CJ Rosenbaum is the Founding Partner of Rosenbaum & Segall, P.C., the law firm behind Amazon Sellers Lawyer, with 30 years of legal experience and admitted to practice law since 1995. He has authored six books on Amazon seller issues and created over 2,000 YouTube videos educating sellers worldwide. The vast majority of CJ’s practice is devoted to representing Amazon sellers in account suspensions, lost inventory claims, intellectual property disputes, and related e-commerce legal matters. Beyond his 30 years of trial experience, CJ has held leadership roles in the New York State Bar Association and the American Association for Justice, and has trained attorneys on trial advocacy in major cities across New York State and throughout the United States and Canada, including New York, Chicago, Montreal, Maryland, Florida, and Los Angeles. CJ has been featured as a speaker at major industry events including Prosper Show (Las Vegas, 2018), Global Sources Summit (Hong Kong, multiple years), Retail Global (Las Vegas and Gold Coast Australia, 2018), ecomChicago (2018), Sellercon, 7 Figure Seller Summit, European Seller Conference, ASD Market Week, Cosmoprof (2022), Stimulate: A B2B Sexual Wellness Trade Show (Nashville), Golf Industry Show (IGES), and numerous other Amazon seller and retail conferences globally. He has been interviewed on dozens of podcasts including Amazing FBA, EcomCrew Podcast, 10K Collective Podcast, Product Launch Hazzards, The Amazon Seller Podcast, Amazon Seller School, and What The Teck. CJ has been quoted in leading media outlets including The New York Times, Forbes, The Wall Street Journal, Bloomberg, CNBC, FOX Business, Entrepreneur, Inc., The Huffington Post, International Business Times, The Seattle Times, and The Denver Post for his work representing Amazon sellers. His extensive published work, speaking engagements, media presence, and trial advocacy training credentials demonstrate deep experience in both Amazon seller law and trial litigation, while his decades of actual courtroom experience provide the litigation skills necessary to win cases against Amazon’s highly paid, extensively experienced defense attorneys.

Brian Malkin is senior trial counsel with over 30 years of litigation experience and is a member of the patent bar. His three decades of actual courtroom and arbitration experience—including hundreds of cases tried to verdict or arbitration award—provide the trial-tested judgment necessary to effectively present cases against well-funded corporate defendants with highly experienced defense counsel. Together, CJ Rosenbaum and Brian Malkin bring over 60 combined years of trial experience to representing Amazon sellers in arbitration for lost FBA inventory, combining deep understanding of Amazon’s systems with proven courtroom skills.

CJ Rosenbaum