> Amazon will just tell the seller, "X from your inventory was just sized by the FBI, talk to them if you want it back"

No, if you have FBA, once your item enters their system, it's their item. If it's seized by the FBI, AMZ will pay you fair market price for your item they've lost the possession of, or will replace it with a likewise item.

I mean, if they had any actual idea/proof that you're the one who supplied them with the counterfeit, they'd not put it into their space in the first place; once it's on the shelves, it's all shared property, and sellers don't own any individual stock.

What is the fair market price of perfume that has been identified as counterfeit by the FBI?

Yeah, just because they pay you for inventory they lose doesn't mean they pay you for inventory that was seized for being counterfeit.

Amazon might care when entire warehouses are locked down for investigation. It's systemic after all.

I find it unlikely to believe that they would lock down entire warehouses for any significant period. I think this is the equivalent of shutting down an entire port because of a (or a few) containers of cargo are counterfit.

...That sounds like the FBI we know and "love". They do so love to make a point.

Amazon is a powerful company with friends in high places.

Don't forget about enemies in even higher places.

I believe FBA stock is comingled with other FBA and Amazon.com stock for the same SKU in the warehouse.

Then how would they know when to credit a seller for a sale? I believe the seller doesn't receive the money until someone actually buys it.

Amazon credits you when someone buys your item, but the item Amazon ships the buyer might not be yours, but an equal equivalent.

And, before you ask: Yes, this results in situations where 100% legitimate sellers on Amazon can sometimes ship (via Amazon/FBA) their buyers counterfeit goods. Shitty situation to be in as a seller.

Sellers can opt-out of commingling, but many don't because a) they don't understand the implications, as Amazon doesn't really make it clear; and b) because it requires them to individually add a separate sticker/identifier to each unit of their product, adding significantly to preparation and packaging costs.

I think Amazon charges more for storage fees if you disable commingling too.

I'd imagine fulfillment would be pricier, too, since items could no longer be located at every warehouse at no extra effort.

Not correct. They do however make you pay for a tier above their "small and light" for handling.

Not true; depends on whether or not you use comingled inventory. It's easy to make it not comingled. That's what we do.