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.

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THOUGHT OF THE DAY

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

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