As previously mentioned in my numerous recent articles regarding the matter, Amazon is now aggressively fighting to combat dropshippers on their platform.
While the most severe consequences are enacted towards those, who are placing dropshipping orders directly using the buyer side of their Seller Account, I noticed various different approaches.
If you are repeatedly warned or suspended due to alleged violations of Amazon’s Dropshipping Policy, in the best scenario, you will have your FBM (Fulfilled by Merchant) privileges removed, while you will be still able to participate in FBA (Fulfilled by Amazon).
Amazon justifies the action by saying that: ”Drop shipping or allowing a third party to fulfill orders to customers on your behalf, is not acceptable unless it is clear to the buyer that you are the seller of record. When a customer sees packaging and invoices or receipts identifying a seller that is not you nor Amazon, they may be confused about how their order is being fulfilled and who they should contact with any problems or questions.”
Typically, you will get caught if a buyer or the unaware supplier contacts Amazon to complain about being dragged into a contract with a third party without their knowledge.
Here you can review a copy of such deactivation notice, with important wording highlighted:
| Hello [name], Your seller-fulfilled offers have been deactivated and your listings have been removed in accordance with the Drop Shipping policy. A reserve equal to your gross sales amount for the preceding 14 days will apply while your account is under review. Please ship any open orders to avoid further impact to your account. Why did this happen? We have taken this measure because we have found that you have repeatedly violated the Amazon Drop Shipping policy. Drop shipping or allowing a third party to fulfill orders to customers on your behalf, is not acceptable unless it is clear to the buyer that you are the seller of record. When a customer sees packaging and invoices or receipts identifying a seller that is not you nor Amazon, they may be confused about how their order is being fulfilled and who they should contact with any problems or questions. For more information, visit “Drop Shipping Policy”: https://sellercentral.amazon.com/gp/help/G201808410 Have your seller-fulfilled offers been deactivated in error? If you believe there has been an error, please submit an explanation by following the instructions in the banner on the top of your “Account Health” page, and you will hear back from us via email: https://sellercentral.amazon.com/performance/dashboard?ref=ah_em_op Your explanation should include the following information: — Evidence or examples that demonstrate that your account complies with our Drop Shipping policy. What happens now? Your seller-fulfilled orders will remain deactivated. You may still accept Amazon-fulfilled orders. To learn how to change seller-fulfilled offers to “Fulfilled by Amazon”, visit “Fulfillment by Amazon (FBA)”: https://sellercentral.amazon.com/gp/help/53921 A reserve equal to your gross sales amount for the preceding 14 days will apply while your account is under review. Based on your order volume, the amount of the reserve may change daily. This reserve amount shows as your “Unavailable Balance” in your “Payments Report” in Seller Central. When your account balance exceeds this reserve amount, you will be able to transfer funds based on your settlement schedule. For more details, visit the “Payments Dashboard” in the “Reports” section of Seller Central: https://sellercentral.amazon.com/payments/reports/statement/details We’re here to help If you have questions about this policy or information requested above, please contact us: https://sellercentral.amazon.com/cu/contact-us For more information, visit “Create a plan of action to reinstate selling privileges”: https://sellercentral.amazon.com/gp/help/G201623610 To view your account performance, select “Account Health” on the home screen of the “Amazon Seller” app on your iOS or Android device, or go to the “Account Health” page in Seller Central: https://sellercentral.amazon.com/performance/dashboard?ref=ah_em_opThe “Account Health” page shows how well your account is performing against the performance metrics and policies required to sell on Amazon. — Download the iOS app: https://itunes.apple.com/us/app/amazon-seller/id794141485 — Download the Android app: https://play.google.com/store/apps/details?id=com.amazon.sellermobile.android&hl=en_US |
Placing a restriction on just the FBM part of a Seller Account is still better than having the whole store suspended in its entirety or placed on a hold.
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I hope you found this article helpful. Many Amazon sellers recently started trading stocks and crypto currencies, hoping to diversify their income, which is a very good idea with all the uncertainty which comes with the platform. For this reason, we launched a new Facebook group, Crypto Arbitrage Income (Bitcoin, Crypto, Altcoins, Blockchain, Trading) – feel free to join us and forget about the troubles of selling on Amazon for a moment!
Regarding Amazon Seller Performance, you can always participate in our Amazon Seller Performance – Friendly Advice – Worldwide group, where you will be very welcome.
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