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Are chargebacks the new legalized theft on Amazon?
  • By SellerBites
  • December 1, 2025
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Are chargebacks the new legalized theft on Amazon?

One seller’s rant turned into a chorus of frustration. 

Chargebacks are hitting predictably, sellers have no safety net, and Amazon isn’t stepping in.

  • Time to replace your Amazon software stack 📚
  • Are sellers forced to pay for fraud? 💸
  • Thought of the Day 🍴

SELLERBITES INBOX

An Amazon seller (OP) asked: Why aren’t false chargebacks treated the same way as theft?

A lone complaint snowballed into a seller-wide confession chargebacks aren’t painful surprises anymore, just predictable losses. And sellers are done paying for a system that refuses to call the fraud out.

Here’s what the community said:

  • Amazon’s protections are weak, especially when buyers file a second chargeback.
  • Some sellers lose hundreds to thousands even after providing proof. 😫
  • Police in both locations often claim “nothing can be done.”
  • Many believe Amazon prioritizes buyers, leaving sellers exposed.

 🪤 The trap you can't escape

Sellers said the system doesn’t just fail you, it recycles the failure.

  • Endless chargebacks: Some buyers file a second one after losing the first, and Amazon’s “we were not able to participate” reply all but guarantees a loss.
  • No enforcement: Whether on Amazon, eBay, Shopify, or a seller’s site, police rarely step in unless the amount hits felony levels. ⚖️
  • Invisible damage: Beyond the refund, the emotional toll adds up. One seller called it “death by a thousand cuts for small businesses.”

⚠️ Being the 'unprotected party'

Many sellers echoed the same sentiment: Amazon will never be on the seller’s side. The system is optimized to keep buyers happy, even if it means absorbing fraud as “the cost of doing business.”

A seller shared an example: A buyer first complained about quality, then claimed they received an empty envelope. The A-to-Z claim? Approved.

TOGETHER WITH THREECOLTS

Is that “CYBER20” coupon actually profitable?

It's Cyber Monday. Your sourcing list is a mile long. 

Walmart has 30% off, Target has 20% + a coupon, and 50 other sites have different deals.

You can't possibly calculate the true profit on all of them. 

By the time you open your spreadsheet, the best flips are gone. You're either paralyzed by "deal noise" or just guessing and hoping for a margin.

This is why 7-figure resellers use Tactical Arbitrage (included in Seller 365). 

It scans 2,000+ sites for you, finds the sales, and automatically calculates your final profit after stacking coupon codes and discounts. 

It finds the hidden gems you'd miss and ignores the "fake" deals.

Try Seller 365 for free

THOUGHT OF THE DAY

Sometimes the biggest threat to your business isn’t competition, it’s the loopholes others exploit.

BITES OF THE WEEK

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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