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Amazon sued for allegedly revoking issued refunds

Alexa, read me the headlines—straight from The New York Times. 🗞️

While The Times is still suing Microsoft and OpenAI for copyright infringement, it just struck a multi-year deal with Amazon to license its content across Alexa and other AI tools. This deal signals a growing trend: some media giants would rather cash in than lawyer up. 🤷

Here’s who’s taking Amazon to court instead:

  • Amazon sued for yanking refunds ⚖️
  • Sell on Walmart before July for back-to-school boost 🎒
  • 92% of marketers bet on Instagram 📸
  • The secret metric driving Amazon growth 📊

BLACK MARKET

Before, getting a refund from Amazon was almost too easy—drop it off, get your money back, no questions asked. But now, Amazon is facing a class action lawsuit for allegedly taking refunds back. 

WLTX News19 reported that customers say their refunds seemed to vanish into thin air… days or even weeks after they were issued.

💨 Poof!

Take Bill Middendorf.

  • He returned his item at a drop-off location—one of the kiosks Amazon operates inside Kohl’s, Staples, and Whole Foods. 
  • He got his instant refund and walked out with a receipt in hand.
    • But that receipt doesn’t include any tracking info. Just a vague promise that Amazon would take it from there.
  • Ten days later, the money vanished. No refund. No record.
  • When Bill returned to the store to check in, the return order had mysteriously disappeared. 

And he’s not the only one. Other customers say their refunds were revoked weeks after the return, with no explanation.

🧾 Fine print strikes back

Amazon says it’s all in the policy: If an item is returned damaged, incomplete, or never officially scanned, the refund can be revoked.

Here’s what can trigger a reversal:

Basically, if Amazon can't verify the return, the refund isn't final.

📂 Refund ripple effect

This might sound like a customer issue, but it has major implications for sellers too. 

If Amazon’s cracking down on refunds, expect more disputes, frustrated buyers, and a higher risk of chargebacks or bad reviews. 

When trust in the return process breaks down, sellers often end up paying the price.

TOGETHER WITH WALMART MARKETPLACE

Start selling on Walmart.com by July to capture peak back-to-school sales

Back-to-school seasonal demand is second only to holiday season with highly promoted sales that can drive traffic, boost your brand and fuel sales. Launch your store now to ensure you're selling in time to capitalize on the back-to-school traffic surge.

Right now, Walmart’s New-Seller Savings event is offering new sellers up to $75K in incentives, which includes up to 75% off base referral fees and generous credits toward advertising and fulfillment.*  

Walmart is one of the world's most recognizable brands with over 255 million customers and members shopping at Walmart online and in-store around the world each week. New-Seller Savings run from sign up to January 31, 2026, so don’t wait—the faster you start, the more opportunities you’ll have to save. 

To take advantage of this unprecedented offer and the endless opportunities on Walmart.com.

*Conditions apply.

Join Walmart Marketplace Today.

BITES OF THE WEEK

Instagram is the top priority for 92% of marketers

Wondering which social media platform your brand should double down on?

Link In Bio just released the first part of its “Very Online Survey,” and the verdict is in: Instagram is still the queen bee of content.

  • 92% of creators say Instagram is their #1 priority. 
  • When asked where they'd focus if they could only post in one place, 60% said Instagram.

Why? Because Instagram offers versatility—from Reels to Stories, Broadcast Channels to good ol’ static posts. But one format rose above the rest…

  • Carousels. 70.3% said carousels drive the most engagement—even more than short-form video (66.9%).

🌶️ Some other spicy findings

  • LinkedIn beats TikTok?! 52% say LinkedIn is a top priority platform, nudging past TikTok’s 50%.
  • Marketers are leaving X. 59% are planning to quit at least one platform, and 65% of those said “X” marks the first to go. Oof.
  • Engagement gold. Memes, relatable posts, serialized videos, human-led explainers, and opinionated/editorial content.

Instagram isn’t just a platform—it’s the platform. With carousels outperforming even short-form video, your content strategy needs to match where your audience is actually paying attention. 

Don’t just chase trends, double down where it counts.

The hidden metric that controls your Amazon growth

Your Inventory Performance Index (IPI) is your ticket to more FBA storage space. A low IPI? That means restrictions. And if you're not paying attention, it could seriously limit your ability to scale.

Search Engine Journal shared some practical tips to keep your score high.

  • Clear the clutter. Excess inventory is the #1 IPI killer. If it’s not likely tosell in the next 90 days, make a move. 🧹
    • Avoid auto-removals if you can. Instead, try promos, lightning deals, or a little extra PPC spend to move dead stock.
  • Only send what sells. Amazon watches how quickly your inventory moves (your sell-through rate). To stay in the green:
  • Rescue stranded inventory. Some products get stuck in limbo—unsellable, unreturnable, and unseen. ⚠️
    • Check for stranded inventory at least once a week. A quick fix could get your products back in front of buyers.
  • Stabilize your in-stock rate. If you're out of stock too often, you lose sales. If you restock too slowly, Amazon penalizes you. ⚖️
    • Match your restocking cadence to your sell-through pace for a stable score.

🧠 Seller insight

IPI improvements don’t show up overnight. It can take 2 to 12 weeks before you see results. Don’t jump ship too quickly—stay the course and track what works.

Author : SellerBites
Faith began working on SellerBites in 2021, a weekly newsletter that provides sellers with the latest news and updates in FBA. With first-hand experience in managing various seller and vendor accounts, she understands what sellers face on this platform. Her background led to the conception of SellerBites, which main goal is to help people become better, more informed entrepreneurs in the Amazon marketplace.
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