Amazon has number of ways to detect the violations of drop shipping policy, following points are the reason why many of the Amazon Seller Accounts involved in dropshipping are getting suspended.
• Supply chain documents being falsified to satisfy requests for invoices:
According to Amazon’s Dropshipping Policy, each seller must provide authentic and complete information regarding sourcing, inventory, packaging, and suppliers. It is verified by “Merchant Review Team.” Many dropshippers with a low budget for inventory simply provide Amazon with fake invoices and supplier agreements. This leads to forged documentation suspensions.
• Valid Tracking Rate (VTR) being artificially maintained using fake tracking numbers:
It is necessary to maintain a valid tracking rate of more than 95% by providing customers with valid tracking numbers. Dropshippers tend to manipulate tracking numbers by two ways! When the product is ordered from a retailer, a fake tracking number generated using a tracking number generating website is given to the customer. To maintain a good Pre-fulfillment Cancellation Rate, if a dropshipper is out of stock, they will insert a random valid tracking number into the order and then issue a full refund once the customer reports non-receipt after seeing the order delivered to a wrong address. This invalid tracking when reported by a customer can lead to a suspension due to Seller Code of Conduct.
• Packaging Materials containing other retailer details or invoices:
When dropshipping from other retailers, such packages will typically contain other company branding or invoices showing the actual order details, which don’t correspond with the actual Amazon order. Amazon detects these complaints from customer feedback, product reviews or customer service chats with customers.
• Late shipment rate & Pre-fulfillment cancel rate (LSR) exceeding minimum targets:
Most of the times a dropshipper cannot maintain Amazon’s Late Shipment Rate standards which must be less than 4% and Pre-fulfillment Cancel Rate which must be less than 2.5%.
• Order Defect Rate (ODR) exceeding minimum targets:
Just like with the Late Shipment Rate and Cancellation Rate, exceeding the 1% Order Defect Rate can attract a suspicion of prohibited dropshipping.
• Refunds following marking orders as shipped
Confirming orders as shipped and then immediately refunding is one of the easiest ways how to get suspended as a dropshipper without ever accumulating any defects.
Once Amazon detects any of the above mentioned practices, they may conduct a so called “Seller Account Review for Seller Fulfilled orders.” This review can last up to 30 days and disbursements may be disabled.
If you are a dropshipper, who is violating Amazon policies and your Seller Account already received a warning or is under a review, I would strongly advise you to immediately stop with the practices.
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