Blog > Amazon > 8 Common Reasons for an Amazon Seller Suspension and What to Do About It

8 Common Reasons for an Amazon Seller Suspension and What to Do About It

In the first half of 2023, Amazon completed more than 52 million actions to suspend access in the EU alone, 97% of which were found to be correct Amazon seller suspension decisions.

No Amazon seller wants to wake up to the harrowing message that their account has been deactivated. Unfortunately, this is a reality for many, but there are steps you can take to try and get reinstated quickly. Even better, you can proactively work to protect your account from this headache right now by reading our comprehensive guide on Amazon seller suspension.

The basics of Amazon seller suspensions

An Amazon seller suspension is when Amazon blocks you from selling on their platform for breaking one of their rules or failing to meet one of their many standards. That punishment damages your business and listings because you’ll lose sales, rankings, and decrease your Inventory Performance Index (IPI) score. In addition, any stock you have in FBA is labeled as “unfulfillable.” You’ll still incur storage fees for any inventory in Amazon’s warehouses, but Amazon can destroy it once it’s had the “unfulfillable” status for 60 days.

An Amazon seller suspension differs from an account termination, which signifies the end of the road for an Amazon seller. So, if your account is suspended, there’s still hope for getting your account back.

Did a fulfillment error cause Amazon to suspend your account? Discover how MyFBAPrep can prevent future occurrences.

8 Common reasons for Amazon seller suspensions

An Amazon seller suspension not only stunts your eCommerce business’s growth but can also negatively affect your customer experience and reputation. Thankfully, this stressful situation can be resolved and avoided. To help you dodge the account suspension bullet, we’ve outlined some common scenarios that can cause Amazon to take away your selling privileges.

1) Updating your banking details

A simple bank account update can leave you without a seller account. If Amazon finds your banking credentials don’t add up and you can’t provide the additional information they ask for, they can suspend your account.

2) Breaching terms of service

Maybe you manipulated Amazon’s algorithms, sent unauthorized Hazmat to FBA, or employed an aggressive launch strategy that toyed with Amazon’s rankings. Breaking the platform’s terms of service (ToS) will have you headed straight for an Amazon seller suspension, even if you don’t realize you’re breaking them. This can include:

  • Trying to rig the review system: Lobbying for positive reviews, telling customers to contact you before they leave feedback, asking people you know to buy your items and leave a positive review are all prohibited actions.
  • Failing to keep negative feedback at 1% or less: Some sellers are caught when their product has a low perceived value compared to what they sold in their listings.
  • Not keeping canceled or delayed order shipments under 1%: Some sellers who fulfill orders internally or through a 3PL are suspended due to lagging inventory data and inefficient fulfillment processes.

3) Providing a bad customer experience

Poor product ratings, high returns, and listings going out of stock dampen Amazon’s prized customer experience. If this occurs too often, they’ll lock down your account.

That’s also true if customers receive products they didn’t order. For instance, one firm that works to help Amazon sellers restore accounts after suspension identified reasons for account suspension like:

  • Kits arrived with the wrong items
  • Clothing ran small
  • Product broke too easily
  • Brand was different than advertised
  • Products arrived late
  • No tracking information provided

In each case, customers consistently had a bad experience, and the Amazon seller failed to correct the issue in time.

4) Opening an additional account without permission

Amazon is incredibly strict with their one-account policy. So, if you don’t obtain written permission before you sign up for another account, you could walk away empty-handed.

5) Upgrading from sole proprietorship to a limited company

It’s hard to believe a simple change in company structure can result in an Amazon seller suspension, but it’s true. Before you know it, you’re swept up in a storm of back-and-forth support tickets, seeking additional verification documents and information. If you can’t provide the requested details within the set time frame, your account will be in jeopardy.

6) Glitches in the Amazon Matrix

Sometimes Amazon makes mistakes, and you pay the price. For example, their security checks and measures (algorithms) could glitch suddenly, causing them to shut people’s accounts. Amazon has also closed accounts due to mistaken identity, believing the holder violated the one-account policy when, in fact, another person with an Amazon account used their WiFi or laptop. (Remember, Amazon’s transparency report shows automated suspension is right 97% of the time, meaning there’s a 3% margin of error.)

7) Inaccurate product description(s)

Whether you twisted the truth or genuinely made a mistake, inaccurate descriptions about brand, size, exact color, etc., are a major no-no in Amazon’s books. They can lead to higher return rates and an unsatisfactory customer experience, which the marketplace would rather avoid. So, Amazon will protect their interests with an account suspension.

For example, if customers consistently report a product is a different color than they were expecting, that could result in an Amazon seller suspension.

8) Providing incomplete invoices

Amazon expects every seller to upload accurate invoices for their business customers soon after their goods ship. If you operate in the EU, you also have to incorporate VAT. Failure to meet this expectation will trigger a warning the first time. But if you miss it again and your invoice defect rate exceeds 5%, you could be waving goodbye to your Amazon account.

How to tackle an Amazon account suspension

Although regaining your Amazon account isn’t easy, it’s still possible. Here are the steps to increase the chances of getting back your selling privileges.

1) Understand the reason for the Amazon seller suspension

The first and most critical step is to learn why you received the suspension. Amazon typically sends a notification outlining the specific policy violations, performance issues, or other problems that led to the account closure, so thoroughly review the communication.

This step is important for developing an effective plan of action. It provides clarity on the specific issues you need to address and helps you avoid similar problems in the future.

Examine your account data in Seller Central as well. Are there buyer complaints or excessive returns? Interview your team. Did someone break the platform’s rules? Where were mistakes made? Sometimes figuring out what went wrong can require a significant amount of digging. More often though, it’ll be readily apparent and may already be a known issue.

You could also reach out to Account Health Services (AHS) through the Account Health page. Sometimes, these agents can explain why the appeal was rejected, or when you might expect a response. Take their advice with a grain of salt, however, as it isn’t always accurate.

2) Craft a plan of action

Once you’ve identified the reasons for the Amazon seller suspension, you must create a detailed plan of action (POA) to send to Amazon in your appeal. In it, concisely lay out the specific actions you have or will complete to resolve the problems. Clearly articulate the preventive measures you intend to implement to avoid future violations. A well-crafted POA is a crucial component of your appeal to Amazon.

Amazon requires the plan to have three components:

  1. Explain the root cause and why it occurred, including a statement of responsibility.
  2. Detail the steps that were taken to remedy the problem, such as replacement products, refunds, or apologies.
  3. Describe the measures taken to ensure the same mistakes don’t recur. These must be measurable and time bound.

Before writing your POA, understand what specific elements you need to include by reading Amazon’s POA guidance for the territory you sell in. From there, implement the following tips to sharpen your POA’s delivery:

  • Set the scene with a short introduction.
  • Keep it short, simple, and easy to read.
  • Acknowledge where you went wrong and avoid the blame game.
  • Focus on the facts and only include relevant information.
  • Provide evidence of your store’s positive performance.
  • Add a conclusion summarizing the actions you’ve taken to make things right.
  • Make a direct request for Amazon to restore your account.

If you struggle to craft a winning appeal, it might be time to bring in the pros. They can ensure your POA is accurate, on point, and provides the remedies Amazon needs to see. In addition, a qualified professional should be able to help you escalate to executives and teams inside of Amazon, if necessary.

3) Submit a clear and concise appeal

With your POA ready, it’s time to submit an appeal through the appropriate channels on Amazon. Your appeal should restate the issues highlighted in the suspension notice and express your commitment to compliance with Amazon’s policies.

It’s essential to be proactive and responsive at this stage. If Amazon requests additional information or clarification, provide it promptly. Timely and thorough communication increases the likelihood of a favorable response. Here are some things to remember when dealing with Amazon support to dodge communication errors:

  • Avoid generic or rambling responses.
  • Maintain an upbeat and polite tone in all your communications, whether in your POA or speaking with Amazon support directly.
  • Don’t bug support for updates, as this could delay your application.
  • Don’t blame customers or Amazon support for issues, regardless of whether or not they did something wrong.

4) Monitor communication channels

After submitting your appeal, closely monitor your communication channels, including your email and seller account, as Amazon may reach out for additional information or clarification regarding your POA. Stay vigilant and respond promptly to any inquiries to demonstrate your commitment to rectifying the situation.

Best practices to avoid Amazon seller suspensions

You can avoid an Amazon seller suspension in the future by following best practices.

1) Stay up to date on Amazon’s terms of service

Amazon’s terms of service constantly change, so it’s critical you keep up with the latest rules and policies to avoid hiccups in your selling journey.

Often, too many third-party sellers are unaware of Amazon’s extensive web of regulations. For example, many drop-shippers had no idea they couldn’t sell items and fulfill orders from other online retailers, and it cost them their accounts. Other sellers don’t realize that liquidation inventory is prohibited on Amazon, even if it came from their fulfillment centers.

2) Keep your prep and fulfillment processes in check

It’s important to know your duties and responsibilities according to your chosen prep and fulfillment process. Study the service-level agreement (SLA) from your fulfillment service(s). Some typical SLAs you’ll encounter include:

  • FBA SLA: Details responsibilities you’ll have as an Amazon seller, like sourcing and sending goods to Amazon. The FBA SLA also outlines Amazon’s commitment to you as a seller, such as receiving inventory into their fulfillment centers and shipping goods to customers on time.
  • FBM SLA: This covers what you’ll be accountable for as a seller taking on the fulfillment process, including safe delivery of orders to customers within the shipping options’ standard delivery times.
  • Seller Fulfilled Prime (SFP) SLA: Explains the obligations you’ll have when sending Prime goods from your warehouses.

Whichever SLA you opt for, it’s vital you uphold your responsibilities within the agreement (like replenishing stock before you run out to avoid rushed receiving and restocking). This approach will help you:

  • Maintain a great customer experience
  • Avoid costly fulfillment errors (e.g., sending goods to FBA that don’t meet Amazon’s packaging requirements)
  • Boost repeat orders and returning customer rates

3) Maintain a healthy IPI score

The Inventory Performance Index (IPI) is a metric Amazon uses to determine how well you manage your stock’s turnover. It’s essential you take consistent actions to improve your IPI score; otherwise, Amazon may reduce your inventory limits or even suspend your account. According to Amazon, the most critical moves you can make are to:

  • Keep a happy medium between how much inventory you sell and how much you keep in FBA (between 30-60 days’ worth of stock)
  • Avoid racking up excess and aged stock
  • Resolve listing issues
  • Ensure your top-performing products have enough stock to service demand

Amazon changes their minimum IPI score, so stay informed on what the latest figure is.

Avoid Amazon seller suspensions and get your fulfillment right the first time with MyFBAPrep.

4) Appeal everything

No matter the defect you face, address it. The goal is to have it removed to increase your Account Health Rating (AHR) score.

This numerical rating is visible on your Account Health Page and serves as a reflection of your standing with Amazon. For context, a score over 200 is considered “healthy,” although it can rise as high as 1,000 if the account has significant sales volume and minimal defects.

You should appeal all defects because, if you’re suddenly hit with a harsh violation (such as 30 intellectual complaints from the same brand but for different ASINs), your seller account could be in danger of suspension. This is especially true if you already had a number of unaddressed violations dragging down your score.

Follow these steps to keep a healthy score:

  1. Do not agree with Amazon’s accusation just to make the defect go away. In some cases, Amazon allows sellers to “agree” with their stated violation. Yes, your AHR goes up when this happens, but you can never again sell the product in question. If you make a mistake and sell the item again, a harsh Code of Conduct violation could result, and you can permanently lose your account.
  2. Only agree if you’re guilty and have no hope of appeal. For example, you can’t appeal an inauthentic accusation if you don’t have invoices. But only agree if you’re in this kind of extreme circumstance.
  3. Stay on top of intellectual property (IP) violations. The “suspected IP” category is one of the most frustrating, so give them due attention. Do the work to clear these violations or find a company that can help you.

5) Implement preventive measures to avoid an Amazon seller suspension

Once your Amazon account is reinstated, it’s imperative to launch preventive measures to avoid similar issues in the future. Evaluate the root causes of the suspension and take steps to strengthen your seller account.

This could involve improving your product listings, refining your customer service, or implementing stricter inventory management. Learn from the experience and make necessary adjustments both to avoid future violations and contribute to the long-term success of your Amazon business.

6) Conduct a comprehensive account audit

After the suspension is lifted, conduct a thorough audit of your entire Amazon seller account. Scrutinize every aspect, from product listings to account settings. Examine product descriptions, images, and pricing to ensure compliance with Amazon’s guidelines. Check your account settings, payment information, and shipping details for accuracy as well.

This step is crucial to identify any lingering issues that might have contributed to the suspension or that may pose a risk in the future. A comprehensive audit minimizes the chances of overlooked issues causing problems down the line.

7) Stay informed on Amazon’s policies and updates

Amazon’s policies and guidelines are subject to change, so it’s imperative to stay informed to maintain compliance. Regularly check for updates and adjust your business practices accordingly to avoid any future Amazon seller suspensions. You can also subscribe to official Amazon communication channels like seller forums and newsletters to receive timely updates. Being aware of these changes helps you keep your operations aligned with Amazon’s evolving requirements, in turn reducing the risk of future suspensions.

8) Utilize Amazon seller support resources

Amazon provides various support resources that are invaluable for maintaining a robust seller account. Take advantage of the Seller Central Help pages, forums, and customer support to seek guidance on compliance, account health, and any lingering concerns, as well as enhance your understanding of Amazon’s expectations.

9) Monitor customer feedback and reviews

Customer feedback and reviews play a significant role in your account’s health. Actively monitor these forms of social proof and address any negative feedback promptly. Meanwhile, you can promote positive reviews by encouraging satisfied buyers to leave their thoughts. Positive customer interactions contribute to a positive account reputation.

If you can’t stay on top of feedback manually, consider implementing AI tools to monitor, categorize, and flag risky reviews for you. If you see frequent complaints about items, especially the same item, it’s a sign you need to act — and quickly.

10) Keep detailed records and documentation

Document all communications with customers, shipping records, and any actions taken to address account issues. That paper trail can be a major aid in case of future disputes or inquiries from Amazon, which may allow you avoid an Amazon seller suspension.

Detailed records not only serve as a reference for your own operations but also provide clear evidence of your commitment to transparency and compliance. When in doubt, having a well-documented history can bolster your case when communicating with Amazon.

In addition, being able to supply that communication means you won’t have your account suspended when Amazon asks for it. For instance, if someone files a claim against your listing, you can give invoices showing you purchased the product from the manufacturer. Or, if you’re asked to offer proof of bank account changes or business change filing, having that documentation at the ready can save your account from suspension.

Amazon has a long list of rules and regulations that merchants must abide by when selling on their platform. These policies are in place to ensure a fair and safe marketplace for both sellers and buyers.

Third-party sellers are further bound by Amazon’s Business Solutions Agreement (BSA). The BSA governs the use of Amazon’s business services, including the selling of products on the marketplace. Key points to note in the BSA include:

  • Amazon’s right to suspend or terminate accounts that violate the agreement or cause harm to Amazon’s customers or brand
  • A requirement to maintain accurate and up-to-date account information, including contact information and tax identification numbers
  • Obligations to comply with applicable laws and regulations, including product safety and intellectual property laws
  • Amazon’s right to withhold or deduct funds in the event of customer disputes or chargebacks
  • A dispute resolution process that generally requires arbitration and prohibits class actions

Some of the most important policies to be aware of are those that deal with product detail pages, prohibited content, reviews, and logistics.

Product detail pages

These rules cover a wide range of elements, from product images and descriptions to their pricing. Sellers must accurately describe items and follow Amazon’s guidelines for product listings. This ensures customers have a clear understanding of what they’re purchasing and reduces the risk of returns and negative feedback.

The policies for product detail pages deal with:

  • Accurate product information: Sellers must provide correct information about their products, including descriptions, images, and pricing. It must be consistent with the item being sold and not mislead shoppers. That means accurately representing the brand, size, manufacturing, any defects, safety labels, etc. Also ensure the color is accurately represented in multiple images using different lighting so customers gain a clear idea of the offering. If you sell a product in multiple colors, split them so customers don’t accidentally buy the wrong item.
  • Images: Amazon sets regulations for product images that specify their quality, size, and content. Images must accurately represent the product being sold and contain no watermarks, logos, or other branding unrelated to the product.You’ll also want to ensure your primary image meets Amazon’s requirements for a blank, white background with no objects other than the listed item.
  • Titles and descriptions: Product titles and descriptions must clearly detail the product being sold and avoid any promotional language or misleading information. Titles should be concise and to the point so customers quickly grasp what they’re purchasing. Descriptions, on the other hand, should be detailed and informative, giving customers all the information they need to make an educated decision.
  • Pricing: An item’s cost can’t be arbitrary; Amazon has established minimum and maximum allowable prices, as well as rules for price comparisons and discounts.

Prohibited content

Amazon also prohibits the sale of certain products they consider to be illegal or harmful, such as:

  • Counterfeit items: Amazon takes counterfeiting very seriously and has strict policies in place to prevent their sale of false items. Sellers must be able to provide proof of authenticity for any products they sell, and Amazon may take legal action against those who violate these regulations. To protect your brand, keep invoices and order forms from your manufacturer so you can show your procurement process as needed.
  • Illegal drugs: These include prescription drugs that aren’t approved for sale in the U.S.
  • Tobacco products: This category includes cigarettes, cigars, and chewing tobacco.
  • Hazardous materials: Chemicals and other such substances that could be harmful to customers or the environment are not allowed on the Amazon marketplace.

Customer reviews

Customer reviews are crucial to a seller’s success on the platform. Positive feedback helps boost sales and improves product visibility, while excessive negative ratings can damage a seller’s reputation and harm their sales. Because sellers can manipulate consumer opinion to their advantage, it’s important to adhere to Amazon’s rules and guidelines regarding customer reviews to avoid an Amazon seller suspension.

One of their most prominent policies states that sellers are prohibited from offering incentives such as gift cards or other rewards in exchange for positive reviews. Additionally, they can’t post reviews for their own products, solicit feedback from family and friends, or ask customers to alter their ratings. Play it safe and be sure you:

  • Don’t ask customers for a positive review
  • Don’t spam customers asking for reviews
  • Don’t ask a customer for a review more than once
  • Only use the Request a review button to solicit feedback from buyers
  • Only ask customers who’ve made a valid purchase for a review

Due to the recent case involving The Bountiful Company, Amazon has also taken harsh steps to combat fake reviews on the marketplace, including lawsuits and permanently banning brands for review fraud. They’ve also established policies to prevent feedback abuse and continuously monitor for violations.

Amazon receives millions of global reviews every week, which they analyze before publishing using skilled investigators and sophisticated, industry-leading tools. Thanks to this diligence, more than 99% of products customers view in Amazon’s stores contain only authentic reviews.

Intellectual property rights

Intellectual property rights (IPR) are a critical aspect of selling on Amazon, so merchants must have the legal rights to sell their products on the platform.

One way merchants can protect their IPR is through Amazon’s Brand Registry program. It provides a number of solutions to help sellers defend their brand, including store creation and management, access to advanced search tools, and the ability to report instances of infringement directly to Amazon. To participate in the Brand Registry program, merchants must have a registered trademark for their brand or be in the process of applying for one. Once enrolled, they can monitor their brand and report any instances of infringement with ease. The program also offers customized product detail pages and automatic brand protections.

Additionally, Amazon has developed a number of policies and procedures to govern the use of intellectual property on their platform to ensure merchants avoid infringing on others’ IPR. These include strict rules concerning the use of trademarks, copyrights, and patents, as well as guidelines for product listings and descriptions.

For instance, sellers have to keep invoices showing the provenance of the products they purchase from suppliers. These invoices must contain sufficient detail so Amazon can identify the brand name, product, supplier, merchant, and number of units. That information helps Amazon verify the authenticity of the items sold on the marketplace and combats the sale of counterfeit goods.

Despite these efforts to protect IPR though, instances of infringement still occur. In response, Amazon launched a number of initiatives aimed at cracking down on counterfeit goods and protecting brands’ intellectual property. These include the creation of a Counterfeit Crimes Unit dedicated to fighting counterfeit goods on the platform, as well as the use of advanced machine learning algorithms to detect and remove counterfeit listings.

Shipping and fulfillment

Customers expect fast and reliable shipping, and sellers have to meet that demand to maintain a positive reputation and grow their business. In that regard, Amazon also enforces specific policies like requirements for how quickly orders should be shipped, how to handle returns, and the use of tracking information for each order:

  • Merchants are required to ship orders within the time frame specified in their shipping settings. They can adjust those settings to reflect their available delivery methods and the time it takes to prepare an item for shipment. In general, Amazon recommends sellers send out orders within two business days of receiving an order notification.
  • The FBA program allows merchants to store their products in the company’s fulfillment centers. When a customer places an order, Amazon handles the picking, packing, and shipment of the item, as well as any customer service inquiries or returns. This can be a convenient option for vendors who want to take advantage of Amazon’s fast and reliable delivery options without having to manage their own inventory and logistics.
  • Returns also require care and attention to avoid negative feedback and penalties. In general, customers are allowed to return items within 30 days of delivery for a full refund, provided the item is in new, resellable condition. Sellers are responsible for providing a return shipping label and handling any customer service inquiries related to returns (unless they opt in to FBA).
  • Proper tracking of every order is essential for both the seller and the buyer. Tracking information allows merchants to monitor the progress of the shipment and ensure it arrives at the customer’s address on time. It also gives the customer peace of mind and avoids potential disputes or claims of non-delivery. For many sellers, that means using a 3PL that can provide tracking at scale, otherwise costs can get out of hand.

Why Amazon’s policies are important to avoiding an Amazon seller suspension

Adhering to Amazon’s policies is not only mandatory for avoiding an Amazon seller suspension but also for maintaining a good reputation on the platform. Amazon has become a household name for online shopping and is known for their customer-centric approach. Shoppers thus have high expectations for product quality, pricing, and shipping times. Sellers who violate Amazon’s rules and fail to meet these demands risk hurting their reputation and losing consumer trust. This leads to negative reviews and feedback as well, which further damage your store’s name and make it difficult to attract new buyers.

Customers are less likely to trust a merchant who’s been suspended, even if their account is reinstated, and it’s also difficult to regain the confidence of current shoppers. Worse, when you receive a suspension, your products will be removed from the platform and you’ll be unable to generate sales until your account is reinstated. These consequences snowball into a loss of revenue for your store.

Adhere to Amazon’s policies

Abiding by Amazon’s rules can be challenging, but it’s essential to maintain a healthy account and avoiding an Amazon seller suspension. Here are some tips for navigating Amazon’s policies successfully:

  • Read the policies: The first and most important step is to read the rules thoroughly, which are available on Amazon’s website. This will help you understand what’s expected of you and what you need to do to stay in compliance.
  • Stay up to date: Amazon’s policies change frequently, so it’s imperative to keep up with any changes. Regularly review Amazon’s policy pages and subscribe to their seller newsletter to stay ahead of the curve.
  • Take advantage of Amazon’s tools: Amazon offers a suite of tools to help merchants stay in compliance with their policies. These include the Product Listing Quality Dashboard, which displays how your product detail pages perform and highlights areas for improvement, as well as the Brand Registry and FBA (discussed earlier).
  • Monitor your account: Check your accounts regularly to ensure you’re in compliance with Amazon’s policies. This includes monitoring product detail pages, customer feedback, and order metrics. These actions hone in on issues early so you can address them before they become significant problems.
  • Respond to Amazon notifications promptly: If Amazon notifies you of a policy violation, it’s essential to respond quickly and take the necessary steps to rectify the situation. Failure to reply promptly can result in an account suspension, so take these notifications seriously.
  • Seek professional help: Amazon’s policies can be difficult to undertake, especially for successful merchants who are busy maintaining supply chains and managing resources. The platform’s internal appeals process can be even more convoluted, prompting many sellers to seek professional assistance.

Consider an appeals service like Amazon Sellers Attorney, which offers a free consultation to help you understand the marketplace rules, maintain a healthy account standing, and reinstate suspended accounts. Their supervising attorney, Kenneth Eade, also provides legal services concerning intellectual property and Brand Registry support, as well as arbitration.

Wrapping up — Safeguard your store against an Amazon seller suspension

An Amazon seller suspension is an uncomfortable situation for any seller. However, if you can stay calm, execute a solid win-back strategy, and learn from your mistakes, your Amazon business can make a full recovery. The best strategy is to prevent suspension in the first place, so stay up to date on your obligations as a seller.

Reinstating a suspended Amazon account requires a strategic and proactive approach. By understanding the reason for the suspension, crafting and submitting a detailed POA and appeal, and implementing preventive measures, you increase your chances of swift reinstatement. Approach account management with diligence and a commitment to continuous improvement to resolve immediate issues and position your business for long-term success on the marketplace.

Is your fulfillment process in compliance with Amazon’s terms? Course-correct with MyFBAPrep.

Published: August 2, 2022 
Updated: July 22, 2024