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Top Reasons Why Amazon Sellers Get Suspended

Read this guide to unlock the reasons of your amazon account suspension.

Top Reasons Why Amazon Sellers Get Suspended

Read this guide to find the common reasons for Amazon seller account suspension

Even the biggest brands and independent merchants may lose their accounts on Amazon due to suspension. The C-suite (a company’s top management positions) may find this surprising because they usually consider Amazon to be just another “automatic” sales channel, even though it is a very significant one.

Why does Amazon account suspended the accounts of third-party sellers, and what steps can companies take to reduce that risk? This blog will explain each and everything in detail. Read more! 

Table of Contents

Amazon Seller Account Suspension

When you violate one of Amazon’s policies or fall short of one of their strict requirements, your ability to sell on their marketplace is suspended. This is known as an Amazon seller account suspension. Due to the loss of sales, rankings, and IPI points, this penalty harms both your company and your listings.

Additionally, any inventory kept in Amazon’s warehouses will result in a “unfulfillable” status for your stock, and storage fees will still apply. After your inventory has been marked as unfulfillable for 60 days, Amazon has the right to delete it.

An account suspension is not the same as an account termination, which means an Amazon seller’s journey is over. So long as you take certain actions, there is still chance for having your account back.

Any eCommerce company might suffer a great deal when their Amazon seller account is suspended. As the biggest online marketplace in the world, Amazon upholds stringent rules and regulations to guarantee a safe and equitable trading environment for both buyers and sellers. But breaking these guidelines might result in account suspension, which can harm your reputation, cost you sales, and possibly even force you to close your doors. 

Importance of Compliance

It’s critical for Amazon sellers to uphold compliance for a number of reasons. In the first place, it guarantees that your items are safe for customers to use and fulfill quality requirements, which will build loyalty and trust among your clientele. Second, adhering to regulations protects you from fines and legal ramifications that could result from vending inferior or forbidden goods. Respecting Amazon’s regulations also prevents your account from being suspended, allowing you to continue doing business on the platform and having access to its large client base.

Top Reasons for Amazon Seller Suspension

Following are the top reasons for Amazon seller suspension, have a look on it.

Amazon Account Suspended Due to Unusual Activity

A suspension from Amazon can harm your eCommerce company’s reputation and customer experience in addition to putting a stop to its expansion. Fortunately, there are ways to avoid and overcome this unpleasant circumstance. In order to protect you from having your Amazon account suspended, let’s examine certain situations that may result in Amazon removing your ability to sell. 

Keyword Stuffing in Product Listings

The technique of cramming an Amazon product listing with keywords in an attempt to rank higher is known as “keyword stuffing,” however it can actually lower your rankings and detract from the user experience. Try these suggestions instead to stay away from keyword stuffing:

Updating Banking Details

You can lose your Amazon account due to a straightforward bank account manager modification. Amazon has the right to suspend your account if they determine that your banking credentials don’t match and you are unable to supply the necessary documentation. 

Providing Incomplete Invoices

Following the shipment of their items, Amazon requires all sellers to quickly upload correct VAT invoices for its business clients. If you fail to meet this requirement, then you will receive a warning. However, you might have to say goodbye to your Amazon account if you don’t achieve this criterion once more and your invoice defect rate is more than 5%.

Getting Paid Reviews

Obtaining sponsored ratings from Facebook groups has become popular recently. But I assure you that this will not continue indefinitely. I am aware of a few merchants whose accounts have already been suspended. Never request reviews from Facebook groups or any other company that provides reviews. Amazon will ultimately learn about this and take down those reviews, therefore this is a big NO.

Requesting frank feedback is acceptable, but you shouldn’t give them anything in return or offer additional incentives. While some vendors are exchanging reviews with one another, this practice is likewise temporary.

Having Multiple Amazon Seller Accounts

It is forbidden for sellers to open several accounts under the same name or residence. If you require an additional account, you must notify Amazon of your requirement and obtain authorization. Avoid using ghost accounts to try to fool Amazon, as they are able to monitor your device’s MAC and IP addresses.

Contacting Customers Outside Amazon Platform

Amazon always keeps customer emails private and advises sellers to contact consumers solely via Amazon emails. Sending messages outside of Amazon is not advised. The phone number of the customer is given, but only for shipping demands. Some vendors include inserts with their products, solicit reviews, offer add-ons, or connect buyers to their own website. Because of this, Amazon may suspend your account.

Amazon Account Suspended Due to Suspicious Activity

Following are the details for account suspension due to suspicious activity.

Selling Counterfeit or Restricted Products

Products that the marketplace regulations deem to be too insulting or harmful are restricted on Amazon. Thus, no vendor on Amazon is allowed to list or sell them. Even though there are many things that are forbidden, Amazon gives some merchants advance permission to sell some of these products on its marketplace legally. All you have to do is apply to sell, give more details about the product, and make a guarantee when listing.

Violating Amazon's Policies and Guidelines

If you employed dishonest methods to obtain reviews, submitted illegal Hazard to FBA, tampered with Amazon’s algorithms, or employed a bold launch plan that affected the company’s rankings. Any violating amazon’s policies and guidelines will result in immediate suspension.

Restricted Product Violations

Inaccurate descriptions are strictly forbidden in Amazon’s books, regardless of whether you misrepresented the facts or made an honest error. Why? They may result in increased return rates and a bad customer experience, both of which Amazon would prefer to avoid. Amazon suspends accounts in an effort to safeguard its interests.

Common Reasons of Amazon Account Suspension

Let’s discuss the common reasons of Amazon account suspension in the below section.

Poor Seller Performance Metrics

Sometimes Amazon reproves you incorrectly, and you pay a steep price for it. For instance, Amazon abruptly closed users’ valued accounts due to a fault in its algorithms used for security checks and safeguards. In addition, Amazon has terminated accounts for false identification, thinking the account user had broken the one account regulation when, in reality, a different Amazon account holder had utilized the laptop or WIFI.

Late Shipping or Order Fulfillment Issues

Deliver orders on time and within the estimated time of arrival. Delays in shipments or high cancellation rates might negatively impact the health of your account so it is your responsibility as an Amazon seller to make sure that your account performs well enough to prevent suspension

Improper Listings

Improper Packaging

Inaccurate Detail Pages to their Function

Building trust and confidence with customers starts with accurate and clear product listings. Because false or misleading product information can cause customers to become dissatisfied and undermine their trust in the platform, Amazon vigorously enforces policies against it. It is vital for sellers to guarantee that their detail pages furnish correct and thorough explanations, including precise product specifications, features, and functionalities.

Customers may file complaints about any inconsistencies or inaccuracies in product listings, but they may also set off Amazon’s algorithmic detection systems and result in account suspension. Therefore, in order to stay in compliance with Amazon’s criteria and minimize the chance of suspension, sellers need to carefully check and update their product listings.

Providing a Bad Customer Experience

To maintain its status as the “world’s most customer-centric company,” Amazon prioritizes providing outstanding customer experiences. Amazon’s dedication to customer happiness can be jeopardized by any incident of bad customer service, including unresolved concerns, poor communication, or delayed responses. Because of this, Amazon keeps a careful eye on data related to seller performance, such as order defect rates and customer reviews, in order to discover and penalize sellers who don’t live up to its standards.

Sellers need to put proactive steps to improve overall customer happiness, prompt issue resolution, and quick communication at the top of their priority list in order to avoid account suspension as a result of a negative customer experience.

Increasing Order Defect Rate

An excessive order fault rate may be a sign of deeper operational problems, such poor product quality, wrong delivery, or subpar customer support. In order to evaluate a seller’s dependability and compliance with service requirements, Amazon keeps a close eye on seller performance data, such as order defect rate. An account suspension for sellers may result from any appreciable rise in the order defect rate, which sets off Amazon’s algorithmic detection algorithms.

Sellers should prioritize customer demands, expedite fulfillment procedures, and put strong quality control mechanisms in place to lessen the danger of suspension. In order to prevent their Amazon accounts from being suspended as a result of an increased order defect rate, merchants should address the underlying causes of order defects and maintain consistently high performance requirements.

Sellers need to put proactive steps to improve overall customer happiness, prompt issue resolution, and quick communication at the top of their priority list in order to avoid account suspension as a result of a negative customer experience.

Effects of Amazon Suspension

If you get suspended on Amazon, you will not be able to sell on the marketplace, reach your potential buyers, and thereby, you lose lots of cash inflow. Getting suspended also renders your brand reputation, trust, and authority vulnerable. Your customers may no longer trust you as your suspension will be visible to any Amazon user searching for your products.

Amazon policies violation like selling illegal or harmful products can lead to legal correction and criminal penalties. In addition, Amazon destroys your listings in their fulfillment centers without paying you and may permanently withhold your payments.

Loss of Revenue and Reputation

Suspension from Amazon can result in serious cash losses as well as harm to a seller’s image. Cash flow and profitability are impacted when revenue streams dry up due to the inability to sell on the platform. Additionally, consumers may stop believing in the brand, which could have a long-term negative impact on sales and reputation of the brand. 

Inability to Sell on the Platform

Amazon suspension abruptly halts a seller’s ability to conduct business on one of the largest e-commerce platforms globally. This inability to sell disrupts daily operations, leaving sellers scrambling to find alternative channels to reach their customers and fulfill orders, which can be challenging and time-consuming.

Long-term Consequences for the Business

The consequences of an Amazon suspension extend beyond the immediate term, potentially affecting the business’s viability in the long run. Reinstatement can be a lengthy process, during which time competitors may gain market share. Additionally, the damage to the brand’s reputation may linger, impacting customer trust and future sales even after reinstatement.

Preventative Measures to Avoid Suspension

How to Restore a Suspended Amazon Seller Account?

restore-amazon-account

Below are the key factors to implement to restore a suspended amazon seller account.

Identify the Reasons for Suspension

Carefully review the communication from Amazon regarding the suspension to understand the exact reasons behind it. Identify any policy violations, performance issues, or complaints that led to the suspension.

Create a Plan of Action

Based on the identified reasons for suspension, develop a comprehensive Plan of Action outlining steps to address each issue. Provide detailed explanations, evidence, and corrective measures to prevent future violations.

Submit an Appeal to Amazon

Craft a compelling appeal letter addressing each point of concern raised by Amazon. Clearly articulate the steps taken to rectify the issues and demonstrate a commitment to compliance with Amazon’s policies and standards.

Follow up with Amazon's Seller Performance Team

After submitting the appeal, regularly follow up with Amazon’s Seller Performance Team to track the progress of your case. Be proactive in providing any additional information requested and remain responsive to inquiries to expedite the reinstatement process.

Final Words

The necessity of adhering to Amazon’s rules and regulations is highlighted by the suspension of seller accounts, even for well-known brands and independent retailers. The fact that the C-suite was taken aback by these suspensions emphasizes how important it is for people to understand Amazon’s role in the sales process.

Companies need to determine the causes behind suspension, develop comprehensive plans of action, file appeals with Amazon, and closely monitor the Seller Performance Team in order to lower the risk of suspension. This blog offers thorough explanations of the restoration procedure while highlighting how important compliance is to preserving access to Amazon’s enormous customer base. Learn more to make sense of the intricacies around the suspension of an Amazon seller account.