Are you an Amazon UK seller looking to take them to the Small Claims Court? This is part four of a guide for Amazon UK FBA or FBM sellers on taking Amazon to County Court. Part one is here: How to Sue Amazon UK as a Seller – Part 1
Negotiating a Settlement and Completing the Directions Questionnaire
In Part One, we covered gathering evidence and sending a Notice Before Action.
In Part Two, we covered filing your claim.
In Part Three, we explored Amazon’s defence and the opening of communications with Eversheds.
Now, in Part Four, we will discuss how to handle negotiations effectively and complete the Directions Questionnaire (DQ).
Understanding Amazon’s Negotiation Strategy
Once Amazon files its defence, they will begin settlement discussions (or you can nudge them to) as we discussed in part three. Their goal is to settle for the lowest possible amount while avoiding a full court hearing or mediation.
Expect the following tactics:
- They will deny liability throughout the negotiation process.
- Their first offer will be low, covering only court fees or a fraction of your claim.
- They will not acknowledge interest or administrative costs but instead offer a general sum to avoid further legal costs.
- They will later claim a “final offer” to pressure you into accepting.
- They want to avoid mediation or a hearing because it costs them money and they cannot control the outcome. They will seek to have it wrapped up before then.
- Their replies will usually have a timeline for reply, usually about a week. Do the same with yours.
- Taking Amazon to Small Claims Court is not a fast process – Eversheds will drag this out initially, and dig their heels in.
Although they will say their offers are final, they are not. Every offer can be negotiated until a deal is reached.
Taking Amazon to Small Claims Court. Your Legal Helper: Don’t Forget GPT!
Use GPT to refine your replies at each stage. Upload Amazon’s responses, link relevant articles (including this one), and let it assist in constructing your replies. As more details are added, the responses will become increasingly professional. Some edits may be needed to remove em dashes and Americanisms, but GPT is excellent at structuring legal documents, keeping them factual and removing emotion – just as a solicitor or barrister would. Take GPT’s advice as to whether to use Without Prejudice in your communications or not. Discuss that with GPT. Refer to the video in Part Three to be sure you understand the term.
The Back and Forth of Settlement Negotiations
Amazon’s First Offer: The Standard Lowball
The first offer from Eversheds is a test to see if you will accept less than what you are owed. Expect:
- A rejection of your claim for administrative time and interest.
- A vague statement implying your claim is unlikely to succeed in court.
- An offer that only covers court fees and possibly a small goodwill sum.
- No mention of stock discrepancies or full financial losses.
- A draft settlement agreement with a non-disclosure clause (one will accompany each offer).
Amazon requires confidentiality in any final agreement because they do not want details of the case, the settlement process, or the fact that they settled at all to be made public. They won’t budge on that.
Your First Counteroffer: Setting the Terms
Your response should:
- Reject their offer as inadequate.
- Reaffirm the legal basis for your claim.
- State your revised settlement demand, including:
- Court fee
- Interest at 8% under Section 69 of the County Courts Act 1984
- Time spent dealing with the issue under CPR 46.5
- Compensation for missing stock or money, if still applicable
- Any other out-of-pocket expenses that are part of your claim
If withheld stock is part of the claim, revise ongoing offers to exclude any stock already returned, ensuring only missing items remain in the claim.
Keep it concise, factual, and unemotional. Do not let them divert the discussion onto irrelevant topics.
Amazon’s Second Offer: A Slight Increase, Still Insufficient
Amazon will respond by:
- Raising their offer slightly, but still offering far less than you claimed.
- Again stating that they deny liability.
- Introducing more urgency, perhaps suggesting this is their best offer.
At this stage, they are hoping you will settle quickly and go away. You are both at poker face stage now.
Your Second Counteroffer: Holding Firm
In response:
- Acknowledge the increase but state that it remains inadequate.
- Reaffirm the legal basis for your claims.
- If stock or money is involved, ensure it has been returned or accounted for before any agreement.
- Maintain a clear deadline for their response with each communication. A week is usual. Expect their replies last thing Friday afternoon.
Let them know you are happy to settle via mediation or, preferably, at a hearing. This keeps pressure on them to get to a reasonable number faster.
Amazon’s Third/Fourth Offer: The Real Settlement Negotiation Starts
If you remain firm, around about now they will:
- Offer a more realistic settlement amount.
- Still deny liability, but frame the payment as a commercial resolution to avoid legal costs.
- Continue insisting on a non-disclosure agreement as part of the settlement.
As mediation approaches, you will need to show some flexibility. They need to justify their job by negotiating you down before settling. To speed up the process, you need to throw them a bone. Reduce your claim slightly by knocking a small amount off the total.
Throughout, keep reminding them that you are happy to settle via mediation or at a hearing. This keeps them under pressure to settle before mediation.
Key Lessons from the Negotiation Process
- Remain polite and professional throughout.
- “Final offer” is just a tactic – keep negotiating.
- Keep thanking them for their replies, engagement, and their “help” in trying to reach a resolution.
- Use legal references to support your claim. GPT will help here.
- Keep reminding them that you are just as happy to settle at mediation or a hearing, but would prefer this way for expediency.
- Mention that if it goes to hearing, you will hire a barrister to represent you. That will increase costs.
- If stock is involved, do not settle until you confirm what has been returned.
- Run everything past GPT before you send it.
Filling in the Directions Questionnaire
Several weeks in, the court will send you Form N180 (Small Claims Track Directions Questionnaire), and it must be returned by email, with Eversheds cc’d in. They will do the same with theirs.
The DQ determines:
- Whether mediation will take place.
- Which court hears your case.
- How the case will be managed moving forward.
Completing the Form
A1 – Settlement/Mediation
- Tick “Yes” to mediation, but also request a hearing.
B – Contact Details
- Ensure your details are correct.
C1 – Court Location
- Request your nearest County Court.
D1 – Expert Evidence
- Tick “No” unless expert reports are required.
D2 – Witnesses
- List yourself and any other relevant witnesses.
E3 – Dates You Cannot Attend
- List any unavailable dates.
F – Other Information
- Mention if stock or cash is still being withheld or if Amazon has delayed responding.
Once completed, the N180 must be returned by email, with Eversheds cc’d in.
Taking Amazon to Small Claims Court: What Happens Next?
Within a few weeks, you will receive a mediation appointment by email. It will be several weeks away.
Amazon does not want to go to mediation because:
- It costs them money.
- They cannot control the outcome.
- Taking Amazon to Small Claims Court: you are representing yourself here. Their time costs money and must be justified.
This is the window to close the deal. This increases pressure on them to settle before mediation, likely at the last moment. It will be 1-2 days before. Now is the time to decide what you’ll settle for so you don’t have to spend any more time on it. If you have your money or stock back already and can walk away with your court fees paid and a few bob in your pocket, that’s a win. Don’t let them take the piss, but also, be reasonable yourself towards the end of negotiations.
If a mediation phone call goes ahead and no agreement is reached, the case will proceed to a court hearing. However, it is unlikely to get that far. They are very likely to settle before mediation.
Remember
- Negotiation is a process – never accept the first offer.
- You will have to throw them a bone and come down some. That is what will happen in mediation or court.
- Amazon will always deny liability, but they will pay to settle.
- Filling in the Directions Questionnaire correctly ensures the case progresses.
- If no fair settlement is reached at mediation, the case will be listed for a hearing.
In Part Five, we will cover how to conclude the negotiations, how fast you will get paid, the paperwork you’ll need to submit to stop the claim, and all about the non-disclosure agreement.
We’ll also cover what happens in the rare event that mediation or a hearing is necessary. However, if your case is straightforward and negotiations are progressing, it is highly unlikely to reach that stage.
Disclaimer: The author is not a solicitor or barrister. This guide is based on personal experience and is provided for informational purposes only. It does not constitute legal advice. If you are unsure about any aspect of your claim, you should seek professional legal assistance.