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Watch out! Amazon is mercilessly cracking down on dropshipping!

Kika Angelic

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Recently, there has been a massive wave of aggressive enforcements by Amazon towards dropshippers. This time, they are not targeting just shady accounts operated by scammers based in Asia, but the company is shutting down all kinds dropshippers, including legitimate businesses operated by established US-based entrepreneurs.

Amazon is not just suspending Seller Accounts, but they are closing (“frauding”) Buyer accounts belonging to sellers who are fulfilling sales received on eBay, Walmart or other platforms by purchasing from Amazon sellers to have them ship to their customer’s addresses. This now applies even in cases where the seller isn’t using Amazon Prime for placing the dropshipping orders.

Amazon simply no longer allows anyone to fulfill commercial dropshipping orders using their site!

Suspensions related to dropshipping are now announced with a deactivation wording:

” We deactivated your Amazon.com account, because you have consistently used your Amazon account for the purpose of reselling in a violation of Amazon Terms and Conditions. ”

The following forms of business practices are no longer allowed on Amazon:

  • Buying from Amazon to fulfill Amazon orders using Amazon Prime
  • Buying from Amazon to fulfill Amazon orders (even without Amazon Prime)
  • Buying from Amazon to fulfill other marketplace orders (even without Amazon Prime)
  • Buying from Amazon to later resell on their platform (even without Amazon Prime)

Here is how Amazon detects dropshipping violations that lead to account closures:

  • Tracking numbers from Buyer Account purchases inserted into Amazon customer orders are an obvious trigger. Don’t even think about doing this!
  • Entering the same tracking number repeatedly, across different orders.
  • Entering incorrect tracking numbers showing delivery in a different country and with a different shipping date.
  • Confirming shipment and refunding.
  • Placing large volumes of purchases on Amazon to different addresses and then claiming no -receipt and seeking refunds.
  • Placing large volumes of purchases as a buyer on Amazon to different shipping addresses.

How Jacob lost access to his 17 years old Seller Account with 2 million USD yearly turnover

Jacob – a young American man, has been selling on Amazon since high school. He has a large warehouse, where he stores products purchased from other retailers for a resale. At the same time, he manages a massive dropshipping business involving eBay, Walmart, Amazon or AbeBooks. With a team of developers, he created a fully automated software, which identifies the lowest offers for a specific product, advertises the merchandise across e-commerce platforms with a small markup and then places orders and has them fulfilled directly to the customer. Thanks to this profitable business model, Jacob was able to generate millions of dollars in profits per year.

It all started two days ago, when Jacob was unable to access his 17 years old Amazon Seller Account. The login screen greeted him with the following scary message:

“ Account Closed – Your account has been closed for misuse of Amazon’s services. We have sent you an email with additional information. ”

Despite this, his Seller Account storefront remained active and orders were getting received. He was just unable to login to the Amazon Seller Central.

At the same time, Jacob received the following scary e-mail from dsappeal@amazon.com :

In a shock and despair, Jacob sent several frustrated e-mails as a response to the appeal option, which resulted in him getting a final decision, without realizing that he was running out of his appeal attempts:

Jacob did not understand what happened to his account and spent a lot of time searching the internet for answers. Then, he found my recent article about Seller Account Holds and subscribed to my Onlyfans page, in order to get help with his account.

What actually happened to Jacob’s Seller Account

After investigating the matter with Jacob, I informed him that his Buyer account has been placed on a hold, which is internally referred to by Amazon as a ”frauded account” or terminated / closed account.

Since his Buyer Account is closed, he is unable to access his Seller Account as well, despite it remains fully operational. Thanks to his automated software which works through API, Jacob can still remotely process Amazon orders and mark them as dispatched. This gives him more time to resolve the situation and prevent damage to his metrics.

If you would like to learn more about Amazon Account holds, read my article regarding the matter: https://seller-union.com/what-to-do-when-your-amazon-seller-account-gets-placed-on-a-hold/.

We quickly determined the cause of the Buyer Account closure – Jacob has been placing hundreds of dropshipping orders per day directly using his Buyer Account that belongs to his Seller Account.

He also told me, how he noticed that all of his other competitors – all large dropshipping businesses, appear to be suspended as well and their storefronts are empty. This reiterates that Amazon is cracking down on dropshipping.

The e-mail address from which he received the original deactivation notice is dsappeal@amazon.com, which stands for ”dropshipping appeal”.

What is shocking about this case – the orders were not placed through Amazon Prime, they were regular purchases. Additionally, he never submitted any A-Z claims, cancellations, returns or refunds.

So this is a complete game changer! Amazon is now entirely outlawing dropshipping on their platform performed by buyers, despite they originally only prohibited misuse of the Amazon Prime Program for this purpose.

Regardless, all Amazon sellers need to remember NOT TO EVER use the Buyer Account connected to their actual Amazon Seller Account for making purchases.

I would strongly advise you not to ever buy on Amazon, if you are a seller on the platform. Even the slightest issue – such as leaving a negative Seller Feedback or requesting a return from another seller could land you into a trouble.

Additionally, you should always maintain a separate e-mail address with User Permissions into your Seller Account, which will enable you to access the Seller Central even after your Buyer Account gets closed.

Next Steps for Jacob

Jacob will need to appeal the Buyer Account closure with a good Plan of Action. We will see, if Amazon still responds through the dsappeal@amazon.com channel, since there were many appeal attempts made before he contacted me.

If there is no response, we will submit the appeal using different channels for executive escalations.

Here you can find the full Plan of Action, which I prepared for Jacob to appeal his Buyer Account closure: https://onlyfans.com/268410699/kikaangelic.

In case that you are a dropshipper, who is worried about his Amazon business or you already received the dreaded deactivation notice, feel free to subscribe to my OnlyFans page at www.onlyfans.com/kikaangelic, where I will assist you for $24.99 per month.

Additionally, here you can watch my YouTube video, where I am presenting you several secret tips about appealing Amazon Seller Account suspensions (don’t be confused by the opening of the video, where I am enjoying a vacation – it’s a part of the story):

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. If you are an Amazon Seller who needs help with any Amazon-related issues such as suspensions, listing blocks or is looking for professional assistance, please don’t hesitate to subscribe to my new OnlyFans page at: www.onlyfans.com/kikaangelic

Don’t forget to upload a new certificate of Business Liability Insurance

Kika Angelic

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Over a year passed since Amazon started requiring its sellers to obtain business liability insurance, if their sales exceed $10000 in monthly sales turnover. Most sellers were able to obtain the required insurance, thanks to my helpful guide found on this link. All you need to do is subscribe to my OnlyFans page for $24.99 and this will enable you to obtain insurance accepted by Amazon, regardless of your business entity and country, where you are based.

However, please note that regardless where your business liability insurance policy was purchased, all insurance policies are expiring after a year and you will need to renew them and re-upload into the Amazon Seller Central, otherwise you will be treated in the same manner as those, who don’t have any insurance details on file.

Here is a copy of e-mail from Amazon requested update business liability insurance information following expiry:

Action required: New certificate of insurance coverage

Hello,

Thank you for maintaining commercial liability insurance for the products that you sell on Amazon.  According to our records, your policy has or is about to expire.  Please upload a new certificate of insurance within 30 days of receiving this email.

Why did I receive this message?

Your commercial liability insurance has expired or will expire in the next 30 days. Amazon Services Business Solutions Agreement requires that once your gross proceeds exceed $10,000 in a month, or as otherwise requested by Amazon, you maintain current commercial insurance coverage and submit a proof within 30 days of receiving a verification request.           

How can I get a proof of liability insurance? 

You can contact your insurance provider to issue a Certificate of Insurance (COI) for the current year. You can also use this opportunity to shop around to ensure you have comprehensive coverage at a great rate. To secure easy and affordable liability insurance, Amazon has worked with an insurance broker to create Amazon Insurance Accelerator, a network of insurance providers who will evaluate and, if appropriate, offer liability insurance at competitive rates to qualifying selling partners. To learn more about Amazon Insurance Accelerator and contact the providers, go to Business Insurance: https://sellercentral.amazon.com/mario/v2/az/flow/BusinessInsurance/page/InsuranceEstablishment/global/render. 

What do I do next?

Upload your current COI as proof of liability insurance coverage on the Business Insurance page: 
https://sellercentral.amazon.com/mario/v2/az/flow/BusinessInsurance/page/InsuranceEstablishment/global/render?view=up

The COI is issued by your insurance company and details on what is covered, the amount of coverage, and any exclusions or deductibles. COI can be uploaded in .pdf, .doc, or .docx format. You can also access the upload page by doing the following:

1) On Seller Central, go to “Settings” and select “Account Info”. 
2) Under the “Business Information” widget, select “Business Insurance”.

What are the insurance requirements? 

For more information about the policy requirements, see Insurance requirements: https://sellercentral.amazon.com/gp/help/G200386300

We’re here to help. If you have additional questions, contact us: https://sellercentral.amazon.com/help/hub/support. 

To view your account performance, go to Account Health: https://sellercentral.amazon.com/performance/dashboard?reftag=ah_em_inv

The Amazon Services team

Additionally, here is a copy of the original business liability insurance requirement e-mail:

Action Required: Provide proof of liability insurance coverage

Hello,
We are writing to remind you to provide proof of liability insurance for the products you sell through Amazon.com Please provide this information within 30 days of receiving this email.

Why did I receive this message?
You are required to provide proof of liability insurance, and our records show you have not done so.  As of September 1, 2021, Section 9 of the Business Solutions Agreement (https://sellercentral.amazon.com/gp/help/G1791) requires you to obtain and maintain at least $1 million of commercial general, umbrella, or excess liability insurance, within 30 days after exceeding $10,000 in gross proceeds in sales in one month on Amazon.com or if otherwise requested by Amazon.

What do I do next?
Please upload your Certificate of Insurance (COI) as proof of liability insurance coverage within 30 days of receiving this email.  The COI is issued by your insurance company and details what is covered, the amount of coverage, and any exclusions or deductibles. 

Where do I submit my proof of liability insurance?
Upload your COI on the Business Insurance page (https://sellercentral.amazon.com/mario/v2/az/flow/BusinessInsurance/page/InsuranceEstablishment/global/render?view=up) in Seller Central account settings. The document can be uploaded in .pdf, .doc, or .docx format.

What are the insurance requirements? 
Your commercial liability insurance policy must meet all of the following criteria:

1. The policy limit must be at least $1 million per occurrence and in aggregate, and cover liabilities caused by or occurring in conjunction with your business operations, including products, products/completed operations and bodily injury; 
2. The insurance policy type can be either commercial general, umbrella, or excess liability and be occurrence based;
3. Your insurance provider must have global claim handling capability and a financial rating of S&P (https://www.spglobal.com/ratings/en/sector/insurance/insurance-sector) A- and/or AM Best (https://www.ambest.com/home/default.aspx)  A- or better (if S&P or AM best is not valid or used in the country where you are required to obtain insurance, a local equivalent is allowed);
4. Your insurance provider must give Amazon at least 30 days’ notice of cancellation, modification or nonrenewal;
5. The policy must name “Amazon.com Services LLC and its affiliates and assignees” as additional insureds;
6. The deductible for any policy(ies) must not be greater than $10,000 and any deductible amount must be listed on the certificate(s) of insurance;
7. The policy must cover all sales from products you have listed on the Amazon website;
8. Your insured name must match the “legal entity” name you provided to Amazon (view your legal entity name) (https://sellercentral.amazon.com/sw/AccountInfo/LegalEntity/step/LegalEntity);
9. The policy must be completed in its entirety and signed; and
10. The policy must be valid for at least 60 days from the date of submission.

How can I obtain liability insurance? 
You can choose any insurance provider that meets our requirements above. To help you easily and affordably secure liability insurance, Amazon has worked with an insurance broker to create Amazon Insurance Accelerator, a network of insurance providers who will evaluate and, if appropriate, offer liability insurance at competitive rates to qualifying selling partners. You can learn more about Amazon Insurance Accelerator and contact the providers here (https://sellercentral.amazon.com/mario/v2/az/flow/BusinessInsurance).

We’re here to help
For additional information, please go to our Help page (https://sellercentral.amazon.com/gp/help/200386300). If you have additional questions, please contact us using this link (https://sellercentral.amazon.com/help/hub/support).

You can view your account performance at https://sellercentral.amazon.com/performance/dashboard?reftag=ah_em_inv or by selecting Account Health on the home screen of the Amazon Seller app on your iOS or Android device. The Account Health page shows how well your account is performing against the performance metrics and policies required to sell on Amazon.


The Amazon Services team

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.

If you are an Amazon Seller who needs help with any Amazon-related issues such as suspensions, listing blocks or is looking for professional assistance, please don’t hesitate to subscribe to my new OnlyFans page at: www.onlyfans.com/kikaangelic

To create perfect Amazon Product Images with a pure white background, feel free to watch my YouTube video about our image removal tool, which can be found within tools available on our Seller Union website:

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Watch out as Amazon will be automatically adjusting shipping time estimates!

Kika Angelic

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Recently, Amazon sent their third party sellers doing business on European marketplaces an e-mail titled “Improve your transit time”, which looks just like many of the generic promotional communications, which they are regularly sending.

However, the e-mails state that Amazon somehow detected the seller’s delivery times to be much shorter than their currently set shipping estimates and therefore, the estimates will be automatically adjusted throughout October 2022 to offer customers faster delivery promise. This will all happen without the affected seller’s knowledge or consent and affect domestic standard shipping times.

There is no option how you can proactively opt out and the only thing you can do is manually setting the shipping times back to their original timeframes, once you already discover them being changed.

Here is a screenshot of the e-mail regarding the matter from Amazon:

Here is a copy of the wording:

Improve your transit time

This is an important notification, which requires your attention.
 
Dear Seller,
 
We identified that more than 90% of your orders in the last three months have arrived before your promised delivery dates because your promised transit time is slower than your carriers delivery performance.
 
What does this mean for you?
Your performance indicates that setting a faster transit time could benefit you and the customer by showing a more accurate promised delivery date. In October, we will update your standard transit times ranges in shipping templates to values that are closer to your actual delivery times. As an example, if your transit time is set to 14-21 days and your preferred carrier is delivering within 10-12 days, we will update the transit time to 10-14 days.

No action is required from your side at the moment unless you want to further re-adjust the transit times. We will only adjust Standard Domestic Transit times in shipping templates. Your premium ship options, international and expedited templates will remain unchanged.
What are the advantages of adjusting to faster & more accurate transit time?
Faster transit times mean earlier delivery promise for your offers and customers are generally more likely to purchase products that have a faster delivery promise.

You can, at any time, update or change transit times in the shipping settings if you are unable to offer set transit times to the customers.

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.

If you are an Amazon Seller who needs help with any Amazon-related issues such as suspensions, listing blocks or is looking for professional assistance, please don’t hesitate to subscribe to my new OnlyFans page at: www.onlyfans.com/kikaangelic

If you are interested in registering a Seller Account on Amazon or you are struggling with Seller Identity Verification, please feel free to watch my detailed video, where I am addressing all common mistakes and insider tips for success:

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Amazon postpones the deadline for removal of non-compliant listings under Controlled Drugs Policy

Kika Angelic

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Recently, Amazon announced that they will be starting to enforce their policy affecting over-the-counter (OTC) drugs and/or natural health products (NHP). However, they now e-mailed sellers with a correction, stating that the previously mentioned deadline of 30.September 2022 is being extended to 24.October 2022.

Amazon policy states that all drugs listed in scheduled substances, drugs paraphernalia, and any other drugs and NHPs listed in the “Controlled Drugs and Substances Act” cannot be sold on their platform.

Here you can view a copy of the e-mail regarding the matter:

Important information about over-the-counter drug and natural health product listings on Amazon.ca

Hello,

We are contacting you because you are selling or have sold over-the-counter (OTC) drugs and/or natural health products (NHP) on Amazon.ca. For more information on our policy on these products, go to “Drugs, Drug Paraphernalia & Dietary Supplements”: https://sellercentral.amazon.ca/help/hub/reference/external/200164490

You may have previously received emails informing non-compliant ASINs will be removed from our store starting September 30, 2022. As part of our ongoing efforts to provide the best possible seller and customer experience, we have extended this deadline. Non-compliant ASINs will now be removed from the http://amazon.ca/ store starting October 24, 2022. We will resume sending updated list of identified ASINs from the first week of October 2022.

Why is this happening?

Drugs and natural health products are regulated by Health Canada. Health Canada regulates who can distribute scheduled substances, narcotics, and paraphernalia.  Amazon policy states that all drugs listed in scheduled substances, drugs paraphernalia, and any other drugs and NHPs listed in the “Controlled Drugs and Substances Act”: https://laws-lois.justice.gc.ca/eng/acts/C-38.8/ are not to be sold on Amazon.ca. 

For more information, go to “Drug Scheduling in Canada – General Overview”: https://www.napra.ca/drug-scheduling-canada-general-overview, provided by the National Association of Pharmacy Regulatory Authorities.

If you believe your listings were incorrectly identified or have already been restricted, write to rpsa-sim@amazon.com with a list of affected ASINs. 

The Amazon Restricted Products team

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.

If you are an Amazon Seller who needs help with any Amazon-related issues such as suspensions, listing blocks or is looking for professional assistance, please don’t hesitate to subscribe to my new OnlyFans page at: www.onlyfans.com/kikaangelic

To create perfect Amazon Product Images with a pure white background, feel free to watch my YouTube video about our image removal tool, which can be found within tools available on our Seller Union website:

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