Top 10 Reasons for Amazon Seller Account Suspensions

If you are an Amazon Seller, you should beware common causes for Seller Account suspension and maintain your storefronts in a good standing.

1. Amazon Seller Account Hackers

Many Amazon Seller account suspensions are the result of hacking of an Amazon Seller account. Sometimes, Amazon will suspend the account on their own if they notice suspicious activity. Other times, Amazon sellers themselves will notify Amazon of the strange account activity and their account will then be suspended until Amazon can verify the account details with the Seller.

How To Save Your Amazon Seller Account From Hackers?

1. Amazon Sellers should be cautious using public Wi-Fi or logging in from outside devices.

2. Every Amazon Seller should have some sort of “cyber / e-security” measures in place, including setting up 2-step verification for their account.

2. Operating Multiple Amazon Seller Accounts

Amazon is the biggest E-commerce marketplace with very strict policies that sellers should have knowledge of before creating an account. One such policy states that Amazon sellers cannot operate multiple seller accounts without Amazon’s prior approval. If you are a seller who has a legitimate business that needs a second account, then you have to apply for an exception to this policy. 

How To Avoid This Suspension?

Take care of the following steps before creating an account.

1. Don’t operate two accounts using the Same IP Address.

2. Use different Bank Account, Email ID, Contact Number, Physical Address, Tax ID.

3. Amazon Sellers should always avoid creating two seller accounts without permission.

4. You should not allow other Sellers to login into your Seller Account directly from a different IP address. If you want to give access to someone else, then send him user permission account access through your Seller Central.

3. Intellectual Property Complaints

One of the most common causes for Amazon Seller account suspensions are Intellectual Property Complaints. They include:

1. Patents

2. Trademarks

3. Trade Dress

4. Copyrights Infringement

5. Images, taken from someone else, when creating an Amazon product listing.

6. Text copied from someone else when creating an Amazon product listing.

How To Avoid Intellectual Property Complaints?

Research Patents and Trademarks before starting your private label Amazon journey and also make your own design, arrange your unique pictures and write your Listing description yourself.

4. Inauthentic Complaints

“We take product authenticity very seriously. It is each seller’s responsibility to source and sells only authentic products. If you sell counterfeit goods, we may immediately suspend or terminate your selling privileges and destroy inventory in our fulfillment centers without reimbursement.”

Inauthentic Complaints are the most well-known terms of those suspended from selling on Amazon. Complaints are detected from Customer Feedback, Reviews, Return or Customer Service comments.

How To Avoid Inauthentic Complaints?

These steps are very helpful for avoiding them:

1. Proper Packaging

2. Quality Control

3. On-Time Shipment 

4. The product should not be damaged

5. Sale of Restricted Products

Before you start selling on Amazon, you need to be familiar with Amazon’s policies. 

“The sale of illegal, unsafe, or other restricted products listed on these pages, including products available only by prescription, is strictly prohibited.”

Amazon has also provided a list of the restricted items you can view those items by following the below link.

If Amazon Seller is unsure whether or not the item they propose to list is prohibited, they should always thoroughly check prior to listing.

6. Amazon Sellers Accused of Unauthorized Sales

Another Account Suspension is based on intellectual property infringement caused by the selling of unauthorized products without a prior permission of the Registered Brand Owner. If a seller starts selling a product without permission, the brand owner can register a complaint with Amazon, and then Amazon can take strict actions against them by suspending their account. Many manufacturers set-up exclusive distribution agreements with their distributors because they only want their products to be sold by those distributors.

How To Avoid Complaints?

You need to take steps to prevent this from happening:

1. Always reach the brand or its distributor and obtain permission to resell their products.

2. Obtain and preserve invoices.

3. Always purchase from Authorized Distributors, or from Brand itself.

7. Poor Customer Service Metrics

Seller Performance is also a cause of account suspensions. As a Seller, if you are working with the FBM model you must be maintaining these numbers very strictly. 

• Order defect rate: (ODR) <1%

• Pre-fulfillment Cancel Rate: (PCR) <2.5%

• Late Shipment Rate: (LSR) <4%

If any of the following metrics are not followed, then Amazon considers this to be a sign of bad customer service performance and suspends the account.

8. Guiding Buyers Out of Amazon

Amazon sellers sell their Amazon-listed products on websites and different marketplaces such as Shopify, eBay, Walmart, WooCommerce, etc. They, therefore use Amazon as a promotional platform and guide the buyers from Amazon to their Website or other marketplaces to purchase. If Amazon finds this out, you will be first given a warning, and your account will be put under review. After the warning, if the seller does not stop this activity then Amazon suspends the account.

9. Invalid Credit Card

There are a lot of instances where your account is suspended because of Credit card issues. Some of the problems faced related to the credit card are:

• Updating the credit card information

• Payment failure or Invalid card

After receiving performance notification regarding updating your card information or entering new card information, Amazon sometimes suspends the account till they receive additional information.

10. Fake Reviews and Feedbacks

Nowadays, Amazon is very strictly analyzing seller feedbacks. Amazon is sure that there are still many sellers who go and buy positive reviews in exchange for free products. Recently, Amazon has suspended a lot of seller accounts.

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!

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