Common Reasons For Amazon Seller Account Suspension or Deactivation
Written by Ashwini, Published by Hani
Account seller account deactivation or suspension can adversely affect the sellers. It can cause income disruption, reputation erosion, and a challenge in restoring sales on the marketplace. The suspension or deactivation happens when sellers are alleged of infringed the standards or policies of the business. With a suspended account, sellers forfeit their selling privileges and access to their funds. Here are some of the reasons why Amazon suspends or deactivates sellers' accounts;
A) Seller Account Health:
Account seller account deactivation or suspension can adversely affect the sellers. It can cause income disruption, reputation erosion, and a challenge in restoring sales on the marketplace. The suspension or deactivation happens when sellers are alleged of infringed the standards or policies of the business. With a suspended account, sellers forfeit their selling privileges and access to their funds. Here are some of the reasons why Amazon suspends or deactivates sellers' accounts;
A) Seller Account Health:
Sellers on Amazon can be suspended for failing to meet Amazon’s performance targets. The following are the key metrics that need to be intact;
i) Order defect rate (ODR): This parameter measures the proportion of orders from a seller that have received negative feedback, an A-to-z Guarantee claim or a service credit card chargeback. To avoid suspension, sellers are required by Amazon to maintain an ODR that is lower than 1%.
ii) Pre-fulfillment cancellation rate: This metric measures the number of order cancellations initiated by the seller before the shipment is confirmed. This type of cancellation by the seller divided by the total number of orders in that period is the cancellation rate. Amazon does not recommend this rate to be over 2.5% to avoid suspension. Generally, higher pre-fulfillment cancellation rates are a result of poor inventory management.
iii) Late shipment rate(LSR): The late shipment rate indicates the orders shipped confirmed after the expected ship date as a percentage of total orders, over a specified period. LSR only applies to seller-fulfilled orders. A high number of late shipment rates often leads to customer dissatisfaction since shipments that aren’t confirmed by their ship date by the buyers. Amazon suggests that sellers maintain a late shipment rate of not more than 4%.
iv) On-time delivery: This metric indicates the proportion of packages fulfilled by sellers that customers received on or before the delivery date promised by Amazon on Seller Central. This number is based on packages that had confirmed tracking information in the system. To provide a good customer rating, sellers are advised by Amazon to maintain an OTD higher than 97%.
v) Valid tracking rate (VTR): VTR measures the percentage of seller-fulfilled packages that have a valid tracking number on Amazon. They suggest that the sellers must maintain a VTR greater than or equal to 95% at a product category level.
vi) Address Customer Feedback: If negative feedback from customers, sellers should identify the source of the problem and collaborate with the customer to help resolve the issue.
B) Violations of Amazon-restricted products
Rather than one set of product rules, Amazon has specific product restrictions for each of its product categories. Supplying restricted products could be another cause for account suspension, so make sure you check the Restricted Product pages to ensure that your supply is appropriate and that your supply categories require additional action, like getting pre-approval from Amazon, or do not fall under the Hazmat category.
C) Violations of Amazon's selling policies
All sellers are expected to adhere to Amazon’s policies when selling products on Amazon. If you don’t adhere, Amazon reserves the right to suspend your account. However, if you are a new seller, it is possible that there may be some policy overseeing issues, and or not being adhered to, and it may be viewed as a policy violation. Hence, understanding Amazon's selling policies and knowing the updated changes would always help in keeping one obliged to the terms of service.
Having understood the reasons why Amazon would suspend or deactivate a seller account, it doesn't mean the end of the seller's selling dream on Amazon. Amazon is open to helping the sellers restore the account, as there is an option for the seller to appeal by submitting the relevant documents and details requested by Amazon.
Also Read:
Why Do You Need An Automated Repricer On Amazon?
How to Fix Amazon's Potential High Pricing error?
Also Read:
Why Do You Need An Automated Repricer On Amazon?
How to Fix Amazon's Potential High Pricing error?
Disclaimer:
Amazon is the registered trademark of the e-commerce brand.
Amazon is the registered trademark of the e-commerce brand.
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.
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.