A few years back, a customer return a high value order with an auto-generated UPS return label. The package got a pickup scan from UPS, then was never scanned again and never arrived back. Amazon debited the full order amount ($843) automatically even though the return package was never delivered.

I called UPS countless times to try to open an investigation and failed because Amazon is the UPS account holder, and UPS requires Amazon to open a claim investigation. In dozens of back and forth cases/messages with Amazon, they refused to open a claim and provided no help. Phone support agents even insisted the seller is responsible for opening the UPS claim, even when UPS wouldn't allow it. (Seller support also instructed me to file a SAFE-T claim, which was denied). Finally, UPS opened a claim but quickly closed it, stating that Amazon needed to file the claim as they are the only party who can seek reimbursement. For reference, see CASE ID 8202394791, CASE ID 8234078401, CASE ID 9039119731, CASE ID 8082351291.

Long story short, Amazon never reimbursed for their lost UPS package. They repeatedly denied claims and said "we stand by our decision". Now, I am encountering what I'm afraid is the same situation. I have another UPS return package that appears to be lost. I call UPS - they say I need to call Amazon because only Amazon can start a claim - I then call Amazon seller support, and they tell me to call UPS. Amazon seller support is clueless as to how to handle this situation.

Has anyone else encountered this? My business has already lost $843 previously which I am still trying to recover. This is blatantly unfair to sellers. Amazon auto generates a UPS return label, then when it's lost and the seller never receives the product back, they debit the full amount and provide no recourse whatsoever to the seller.

Amazon needs to be held accountable for this behavior. I searched the forums and immediately found numerous other sellers stuck in the same situation, being unable to get reimbursement, let alone file a claim for a lost auto-generated UPS return shipment