Amazon Seller Account Suspended? What to Do!
When the Amazon Seller Account is suspended, all selling rights are lost. This means that as a seller, you lose the right to sell your own products on the marketplace. In some cases, there may only be a suspension in certain areas of the account; for example, it is possible to be suspended for Fulfilled by Merchant (FBM) and only be allowed to sell through FBA. Additionally, Amazon can suspend part of the product range if the conditions for suspension are present for those specific products.
IMPORTANT: In the event of an account suspension, Amazon freezes pending payouts for about 90 days to account for any returns, while outstanding orders can still be shipped. If an Amazon seller’s account is suspended, they do not receive the payment due from Amazon. In this case, they must wait until their account is reinstated to access the so-called Amazon balance.
If an account suspension occurs, the message “Your account has been disabled” will appear in Amazon Seller Central. Additionally, Amazon sends the respective seller a deactivation notification via email, listing the reasons that led to the suspension.
What leads to an account suspension?
Amazon places high demands on sellers who sell through the platform. This applies to all areas of the supply chain: from product authenticity, shipping, return processing, to customer communication. Amazon measures the seller’s performance in all these areas. Accordingly, the e-commerce giant is very sensitive when these requirements are not met by sellers, which can lead to the suspension of their account.
Specific reasons that can lead to suspension
Poor Seller Performance
If a seller’s performance does not meet Amazon’s requirements over a certain period, this can lead to a suspension. A rate of order defects over 1%, a high rate of negative feedback, A-to-Z Guarantee claims, or credit card chargebacks are examples of inadequate seller performance.
Violations of Selling Policies
If sellers violate one or more of Amazon’s policies, they can be suspended. For example, if they send…
Incorrect Seller Information
Incorrect information about the Amazon seller can also lead to suspension. The most common issues are:
Patent and Copyright Infringement Claims or Counterfeit Goods
Copycats or similar products are not uncommon on Amazon. Therefore, Amazon handles such cases very rigorously by suspending such products or even sellers.
Compliance Violations
In the fight for the Buy Box, sellers or resellers must be extremely cautious when determining prices. If Amazon detects any collusion in price setting, it constitutes a violation of antitrust law, which can lead to the suspension of the respective seller’s account.
The Existence of Duplicate Accounts
Amazon identifies sellers who have two Amazon accounts through data such as the VAT identification number (VAT ID), the names of the shareholders, and so on. In cases where there are duplications in this data, both accounts are suspended.
What can be done against an account suspension?
The reinstatement of the seller account is a process that can be handled by submitting an action plan through an Amazon procedure. The action plan includes 3 essential questions that a seller should specifically address:
When creating or implementing the action plan, there are points that are essential according to Amazon:
For more information on creating or implementing the action plan, you can find it here.
What can be done in advance to prevent these?
Not every violation leads directly to an account suspension. Typically, Amazon issues a warning in advance. Based on experience, Amazon warns the respective seller in about half of all cases before they are suspended. In doing so, Amazon informs the seller in advance about exceeding a metric and gives them time to rectify the issue.
For example, if there are violations of review policies, a seller can delete reviews from friends, family, etc., and indicate that they will refrain from such behavior in the future.
Conclusion
The reasons for an account suspension can be varied, and the consequences are often far-reaching. The good news is that account suspensions typically do not occur without reason. A seller who performs well and adheres to the selling policies as well as other compliance rules generally does not have to fear account suspension.
Should an account suspension be imminent, Amazon will communicate this in advance. In such a case, immediate cooperation with Amazon and prompt resolution of the issue often helps to prevent the suspension. In the case of an unjustified account suspension, it may be worthwhile to seek legal assistance.
