Amazon account suspension - What this means for you as a seller and what you can do

What Does an Amazon Account Suspension Mean?

An Amazon account suspension means the loss of all selling privileges. This means that as a seller, you lose the privilege of offering your products on the marketplace. In some cases, the account may be partially suspended. This can mean, for example, that you are suspended from self-fulfillment (Fulfillment by Merchant, FBM) and can only sell through Fulfillment by Amazon (FBA). Additionally, Amazon may suspend parts of the product range if the respective products meet the criteria for a suspension.

It's important to note that in the event of an account suspension, Amazon freezes any outstanding earnings for about 90 days to account for potential refunds. During this time, outstanding orders can still be shipped. An Amazon seller whose account is suspended does not receive the due payment from Amazon. In such a case, the seller must wait until the account is reactivated to access the so-called Amazon balance.

When an account suspension occurs, the message "Your account has been deactivated" appears in Amazon Seller Central. Additionally, Amazon notifies the affected seller by email about the deactivation and lists the reasons that led to the suspension.

How Does an Account Suspension Occur?

Amazon sets high standards for merchants selling on the platform. This applies to all aspects of the sales chain, from product authenticity to shipping and returns handling to customer communication. Amazon evaluates the seller's performance in all these areas. The e-commerce giant is extremely sensitive when sellers fail to meet these requirements. Violations of these requirements often lead to account suspensions.

Concrete reasons that can lead to a suspension include:

• Poor Seller Performance: If a seller's performance does not meet Amazon's requirements over a certain period, this can lead to a suspension. This can be caused by an order defect rate of over 1%, too much negative feedback, A-to-Z guarantee claims, or credit card chargebacks.
• Violations of Sales Policies: Sellers who violate one or more of Amazon's policies can also be suspended. For example, sending marketing-related emails to customers or requesting positive reviews can trigger a suspension.
• Incorrect Seller Information: Incorrect information about the Amazon seller can also lead to suspension. This often concerns incorrect business documents or outdated company addresses. Additionally, it is often neglected to correctly list all beneficial owners. Anyone holding more than 25% of the shares must be named to Amazon.
• Patent and Plagiarism Accusations or Fake Goods: The distribution of copies or similar products is not uncommon on Amazon. Amazon handles such cases rigorously by suspending the respective products or even the sellers.
• Compliance Violations: When setting prices in the competition for the "BuyBox," sellers or resellers must be extremely cautious. If Amazon detects price fixing, this is considered a violation of antitrust law and can lead to the suspension of the respective seller.
• Existence of Duplicate Accounts: Amazon can recognize sellers who have two Amazon accounts based on data such as the VAT identification number (VAT ID), the names of the partners, and other identification features. If there is an overlap of this data, both accounts will be suspended.

What Can Be Done Against an Account Suspension?

Restoring the seller account is a process that can be handled by submitting a plan of action through the Amazon procedure.

The plan of action should answer three essential questions:

1. What are the causes that led to the suspension?
2. What actions has the seller already taken?
3. What actions will the seller take in the future to avoid these issues?

When creating and implementing the plan of action, the following points should be considered:

• Be clear and precise.
• Provide an explanation for each issue.
• Include evidence for all points.
• Highlight important areas in your supporting documents.
• If referring to specific processes, mention them in the plan so the Amazon employee can access them (e.g., Case ID, Batch ID, Return ID).
• Write concisely. A plan of action should not be longer than one page.

More information on creating and implementing the plan of action can be found in Seller Central.

What Can Be Done in Advance to Prevent an Account Suspension?

Not every violation leads directly to an account suspension. Generally, Amazon gives a warning in advance. Experience shows that Amazon warns the affected seller in about half of all cases before a suspension occurs. In these warnings, Amazon informs that certain metrics have been exceeded and gives the seller time to correct the problem.

For example, if violations due to late deliveries are present, you can increase the processing time of your items to reduce the rate of late deliveries again.

Repricing Strategies to Prevent Account Suspension

Using repricing strategies effectively can also play a crucial role in maintaining account health. Implementing automated repricing tools ensures that your prices remain competitive and align with Amazon's policies. Sellers must carefully monitor their repricing strategies to avoid triggering compliance violations, such as price fixing. By regularly adjusting prices and maintaining competitive offers, sellers can reduce the risk of suspensions and improve their chances of winning the BuyBox, ultimately contributing to a stable and profitable Amazon business. Repricing is a key factor in preventing issues related to pricing violations and maintaining a good standing with Amazon.

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