Why Does Amazon Suspend Sellers? Top Compliance Issues and How to Avoid Them

Why Does Amazon Suspend Sellers? Top Compliance Issues and How to Avoid Them

insights |  | 6 min read

Amazon is every seller’s dream destination, however, making your place on Amazon can be the biggest challenge. Not only the competition is insane, but the continuous upgrading of Amazon's terms and policies makes the matter much harder. Sellers who fail to comply with such policies can face Amazon seller suspension that jeopardizes their business standing on Amazon.

So, to avoid any such thing from happening, it is important to understand Amazon's compliance issues. So, in this article, we will see a few reasons behind seller suspension to ensure your business remains compliant and operational.  Also, you will learn what to do in a worst-case scenario i.e. you end up suspended.

Why Amazon Suspends Sellers

Amazon compliance issues are the biggest contributor to seller suspension. Though there are other reasons, the major reason is still rules non-compliance. The platform is all about quality and dignity that comes with high standards. This ensures; a positive customer experience, fair marketplace conditions, and protection of platform integrity.

So, some of the common reasons behind Amazon seller suspension are:

1. Selling Counterfeit or Inauthentic Products

Amazon's policies for product selling are crystal clear. The products should be authentic and genuine, so if the seller is compromising over this, Amazon holds the authority to suspend the account indefinitely.  Moreover, the seller could also face the risk of legal action.

Now, the question is how to avoid it. As a seller, you can source products from reliable and trustworthy suppliers, and maintain the documentation to prove the authenticity of your products. Or you can get professional help to manage your products.

2. Poor Seller Performance Metrics

Amazon has its own set of performance metrics that it uses to analyze how well sellers are managing their business. Some of these metrics are:

  • Order Defect Rate (ODR): It measures the percentage of orders with issues. This includes; negative feedback, chargebacks, and A-Z claims.
  • Pre-Fulfillment Cancel Rate: It refers to the percentage of orders that are canceled before shipment.
  • Late Shipment Rate: It monitors the percentage of orders that are shipped later than the expected ship date.
  • Customer Service Contact Response Time: It monitors the average time that the seller takes to respond to customer queries.

In case any of these metrics fall below Amazon’s standards, the seller could face suspension.

3. Failure to Follow Amazon’s Product Listing Policies

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Violating Amazon product listing policies can also cause Amazon seller suspension. This includes issues such as:

  • Incorrect or misleading product descriptions
  • Failure to include necessary product details
  • Violation of category-specific guidelines
  • Improper use of keywords

To avoid seller suspension, they need to follow Amazon’s guidelines about product descriptions as per their category.

4. Inaccurate or Missing Product Information

Sellers are responsible for providing accurate and complete information according to Amazon policy. So, listings with inaccurate or incomplete details can cost the seller his Amazon account. To avoid Amazon suspension, it is important that seller double-check all relevant information about their product. It won’t only improve compliance but also increase your conversion ratio and build brand trust.

5. Repeated Violations of Amazon’s Policies

Amazon policy violations are one of the major reasons behind seller suspension. Amazon is especially strict for repeat offenders. This is because continuous non-compliance undermines the trust of the full marketplace.

Sellers with warnings and with previously suspended accounts should be extra careful. They should document all the corrective actions and ensure that they are complied with across all areas of your business.

How to Avoid Amazon Suspension: Top Compliance Tips

1. Adhere to Amazon’s Seller Code of Conduct

Amazon expects its sellers to behave ethically and maintain a high level of professionalism. Familiarize yourself with the Amazon Seller Code of Conduct, which includes guidelines on pricing, competition, customer communication, and more. By following these guidelines, you will be less likely to face Amazon policy violations that lead to suspension.

2. Maintain High-Quality Customer Service

As mentioned earlier, poor seller performance metrics can result in suspension. To keep your performance metrics in the green, focus on providing top-notch customer service. Respond promptly to customer inquiries, resolve issues quickly, and maintain a high feedback score. Make sure you ship orders on time and keep your inventory stocked to avoid backorders.

3. Use Only Authentic Products

Always source products from trusted suppliers and obtain the necessary documents proving the authenticity of your merchandise. This will not only help you comply with Amazon’s policy on counterfeit products but also protect your reputation as a legitimate seller.

4. Regularly Monitor and Update Listings

Ensure that your product listings are accurate, complete, and up-to-date. Regularly check for issues like missing information, incorrect pricing, or outdated images. Moreover, stay informed about any policy changes from Amazon to make sure your listings comply.

5. Comply with Tax and Shipping Regulations

Amazon’s sellers must also comply with local tax regulations and shipping requirements. This includes ensuring that you charge the correct sales tax, ship within Amazon’s guidelines, and provide accurate shipping information.

Failure to adhere to these regulations can lead to Amazon seller suspension, so stay on top of any local, state, or international requirements that may apply to your business.

What to Do if Your Amazon Seller Account Is Suspended

Despite your best efforts, you may be suspended from Amazon seller. In this case, it’s important to act quickly and strategically to resolve the issue and request reinstatement of your seller account.

1. Review Amazon’s Suspension Notification

When Amazon suspends your account, they will provide a notification outlining the reason for the suspension. Carefully read this message to understand the cause and identify the policy violations you may have committed.

2. Create a Plan of Action

Amazon often requires a Plan of Action (POA) from sellers seeking reinstatement. A well-written POA should address the following:

  • Acknowledge the issue and take responsibility.
  • Outline the steps you’ve taken to fix the problem.
  • Describe the preventive measures you’ve implemented to avoid future violations.

This POA should be detailed, sincere, and show that you have taken actionable steps to resolve the issue. Sellers who provide a clear, thorough plan have a higher chance of having their Amazon seller account reinstatement approved.

3. Appeal the Suspension If Necessary

If your initial appeal is denied, you can submit a revised Plan of Action. Ensure that your appeal is respectful, and to the point, and addresses any feedback Amazon provides. It may take several attempts to achieve Amazon seller account reinstatement, but persistence and transparency are key.

4. Learn from the Experience

In case your account is reinstated, consider it an opportunity and review your business practice. You should implement any changes necessary to ensure all policies are complied with in the future. Consider it a learning experience and improve yourself to avoid any future issues.

Conclusion

Amazon seller suspension can be a huge setback for any business. However, through understanding the reasons behind compliance issues and adhering to Amazon’s policies, you can avoid this outcome.  Mind that, success on Amazon doesn’t only depend on selling great products but also on how you maintain your relationship with Amazon. By staying informed and vigilant, you can build a thriving Amazon business without the fear of suspension hanging over you.

We hope this article was helpful, but in case you need help with your account reinstatement or managing your Amazon business, you can rely on SwiftStartA full service Amazon agency.

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