Amazon to Hold Funds of Unverified Sellers Starting July 7
Amazon has announced that it will freeze the funds of sellers who fail to provide the required information for verification by July 7, 2023. The move is part of Amazon’s compliance with the INFORM Consumers Act, which requires online marketplaces to verify the identity and location of sellers who sell goods and services to consumers in the United States.
Amazon is required to collect certain information from sellers, such as their name, address, and tax identification number, in order to verify their identity. Sellers who do not provide this information to Amazon by July 7 will have their funds held until they do.
The INFORM Consumers Act, which takes effect on June 27, 2023, requires online marketplaces to verify the identity, address, and contact information of third-party sellers and to disclose some of this information to consumers before they make a purchase. The law also requires online marketplaces to remove sellers who provide false or misleading information or who sell counterfeit or unsafe products.
Amazon has been reaching out to sellers covered by the law since May 2023, asking them to complete additional verification checks through its Seller Identity Verification (SIV) program. Amazon has updated its notice to sellers on Seller-Central, on June 26, 2023, reminding them of the deadline and the consequences of non-compliance. “If you do not provide the required information within 10 days of this notification, disbursements for your Amazon selling account will be put on hold starting July 7,” the notice states.
Amazon also told sellers that once it fully verified the information they provided, the “Account deactivation warning” banner related to INFORM would be removed from their Account Health page.
Amazon said it has made many improvements to its verification processes based on seller feedback and that it appreciates their efforts in providing the information. Amazon also said it might need to reverify information if sellers make changes and that it is obligated by law to ask sellers to confirm that their account information is up to date at least once a year.
Amazon is not the only online marketplace affected by the INFORM Consumers Act.
However, each platform may have different methods and timelines for implementing the verification and disclosure processes. Sellers who sell on multiple platforms are advised to check the requirements and deadlines for each platform and provide the necessary information as soon as possible to avoid any disruption to their business.
Amazon is required to collect certain information from sellers, such as their name, address, and tax identification number, in order to verify their identity. Sellers who do not provide this information to Amazon by July 7 will have their funds held until they do.
The INFORM Consumers Act, which takes effect on June 27, 2023, requires online marketplaces to verify the identity, address, and contact information of third-party sellers and to disclose some of this information to consumers before they make a purchase. The law also requires online marketplaces to remove sellers who provide false or misleading information or who sell counterfeit or unsafe products.
Amazon has been reaching out to sellers covered by the law since May 2023, asking them to complete additional verification checks through its Seller Identity Verification (SIV) program. Amazon has updated its notice to sellers on Seller-Central, on June 26, 2023, reminding them of the deadline and the consequences of non-compliance. “If you do not provide the required information within 10 days of this notification, disbursements for your Amazon selling account will be put on hold starting July 7,” the notice states.
Amazon also told sellers that once it fully verified the information they provided, the “Account deactivation warning” banner related to INFORM would be removed from their Account Health page.
Amazon said it has made many improvements to its verification processes based on seller feedback and that it appreciates their efforts in providing the information. Amazon also said it might need to reverify information if sellers make changes and that it is obligated by law to ask sellers to confirm that their account information is up to date at least once a year.
Amazon is not the only online marketplace affected by the INFORM Consumers Act.
However, each platform may have different methods and timelines for implementing the verification and disclosure processes. Sellers who sell on multiple platforms are advised to check the requirements and deadlines for each platform and provide the necessary information as soon as possible to avoid any disruption to their business.
Disclaimer:
Amazon is the registered trademark of the e-commerce brand.
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ChannelMAX offers Amazon Repricer that runs on the latest AI Repricing algorithm to do Amazon Pricing Management or Amazon Repricing. Based on Amazon SP API, the repricing engine or repricer runs 24/7 and efficiently manages Amazon prices to maximize your BuyBox with profit optimization. Established in 2005, ChannelMAX has been integrated with Amazon technology since 2007, helping thousands of third-party sellers on various eCommerce platforms. Some of the eCommerce platforms, aka marketplaces, supported by ChannelMAX.NET, are Amazon, Walmart, eBay, and Shopify. Some of ChannelMAX key offerings include ChannelMAX Amazon Repricer, 2ndly, ChannelMAX Amazon FBA Audits and FBA Refunds management, an offering for managing Amazon FBA Refunds Reimbursement management for lost or damaged or misplaced inventory for which Amazon is responsible and for which sellers deserve appropriate credit reimbursement from Amazon. ChannelMAX Services offer Remote (aka Virtual) Full-Time eCommerce Assistant to help 3P sellers run their daytoday business.
Check ChannelMAX at Amazon Selling Partner Appstore, an application with a 5 star rating.
About ChannelMAX.NET:
ChannelMAX offers Amazon Repricer that runs on the latest AI Repricing algorithm to do Amazon Pricing Management or Amazon Repricing. Based on Amazon SP API, the repricing engine or repricer runs 24/7 and efficiently manages Amazon prices to maximize your BuyBox with profit optimization. Established in 2005, ChannelMAX has been integrated with Amazon technology since 2007, helping thousands of third-party sellers on various eCommerce platforms. Some of the eCommerce platforms, aka marketplaces, supported by ChannelMAX.NET, are Amazon, Walmart, eBay, and Shopify. Some of ChannelMAX key offerings include ChannelMAX Amazon Repricer, 2ndly, ChannelMAX Amazon FBA Audits and FBA Refunds management, an offering for managing Amazon FBA Refunds Reimbursement management for lost or damaged or misplaced inventory for which Amazon is responsible and for which sellers deserve appropriate credit reimbursement from Amazon. ChannelMAX Services offer Remote (aka Virtual) Full-Time eCommerce Assistant to help 3P sellers run their daytoday business.
Check ChannelMAX at Amazon Selling Partner Appstore, an application with a 5 star rating.