Amazon seller account suspended – Help for sellers
As a seller on Amazon, it can happen that your account is unexpectedly suspended – a scenario that can be both frustrating and economically threatening. The problem is that the suspension often catches consumers and sellers completely unprepared. However, the e-commerce giant rarely provides a reason for blocking the account. This article shows why the account is blocked and how customers and retailers can have their Amazon account unblocked.
At a glance
- Reasons for suspension: Amazon can suspend a seller account for various reasons, e.g. violation of the sales guidelines, high return rate, lack of data security or incorrect verification.
- Create an action plan: To reinstate the account, sellers must create a detailed action plan outlining how they plan to fix the issues and avoid future violations. This plan must be submitted via Amazon Seller Central.
- Appeal the suspension: If you believe that your account has been wrongly suspended, you can appeal the suspension. Specialized lawyers can help you with this.
Warning about phishing: There are always fake emails claiming that the Amazon account of the person concerned has been suspended. These emails are deceptively similar to those from Amazon, but they are usually phishing emails designed to intercept user data. It is therefore advisable not to follow a link in the email, but to try to log in to Amazon directly using a suitable browser.
What are the reasons for an Amazon account suspension?
If an Amazon account is temporarily suspended, this can have different causes – depending on whether it is a customer or a seller account.
a) Customer account suspended by Amazon
If Amazon suspends private individuals from their customer account, the company usually does not give any reasons. There are often reports of suspended Amazon accounts due to an excessively high returns rate. However, the number of returns is less important here.
Rather, the Amazon account is suspended when Amazon suspects abuse of voluntarily granted services (e.g. 30-day right of return). This is the case, when private customers buy high-priced goods and return them after use (e.g. a large television that is returned after the World Cup final).
It can also happen that an Amazon account is suspended due to an outstanding payment. If invoices remain unpaid, the online retailer rightly protects itself against further orders and thus further outstanding debts.
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b) Amazon seller account suspended (+ possibly credit withheld)
If a seller’s Amazon account is suspended, this can have a variety of causes. Typical examples:
- Too many returns: From Amazon’s point of view, a large number of returns indicates that the products do not meet customer expectations. The company tries to prevent customer dissatisfaction by blocking their account. If customers often justify their return with “not as advertised” or “used instead of new”, this gives the impression that the seller is acting fraudulently. Particularly frustrating: when using “Fulfillment by Amazon”, the retailer itself cannot influence which products are sent – and is therefore sometimes even completely innocent if customers receive a used item. In addition, from Amazon’s point of view, frequent returns cause higher costs. The retailer is therefore considered unprofitable.
- Data security: Attacks by third parties on the customer account due to a lack of data security represent a security risk for Amazon. If unauthorized third parties take over the seller account, they can offer goods at very low prices, sell them off quickly and divert the sales generated to their own accounts. Even logging in from a new device or from abroad can cause an Amazon suspension if two-factor authentication is not activated.
- Legal violations: In practice, the use of copyrighted or trademarked photos or product descriptions often leads to blocking. The rights holder (e.g. the photographer) asserts their property rights against Amazon and prohibits the use (property rights notification) or sends a warning letter under competition law. To prevent further damage, Amazon suspends the affected product page or even entire accounts. Unblocking is then dependent on appropriate evidence (e.g. citation of source, submission of a license agreement). Amazon may also request the submission of an action plan.
- Verification: Problems with verification with regard to the processing of payments via the Amazon seller account can lead to the account being suspended. As a payment service provider, Amazon is obliged to collect information about its customers (Know-Your-Customer rule). Merchants with low sales and a conspicuous profile often fall under a special regulation where no verification is necessary. However, if problems arise or sales increase, Amazon must verify the identity. Amazon will suspend the account until the verification process is complete.
Tipp: Has your Amazon account been suspended? Our experts will help you to reactivate your account – if necessary also by legal means. Take advantage of our free initial consultation.
Often, the credit balance is also withheld in combination with a seller account suspension. This is particularly annoying for companies that make a large part of their sales on Amazon. Our specialist lawyers take strong action against Amazon to restore your credit.
How to unblock an Amazon account
If the Amazon account is suspended, an email informs you tersely about the block. However, this usually contains no explanation. This makes it all the more important to first find out the reasons for blocking the Amazon account. Those affected can contact Amazon support by phone or email.
Unfortunately, communication with Amazon is usually difficult. The e-commerce company’s employees are often unable to provide information about the reasons and are not authorized to unblock an Amazon account. To unlock the Amazon account, the account holder can submit a statement on the alleged reasons for the suspension. Ideally, they should send Amazon an action plan. With this plan, the account holder outlines measures to prevent the recurrence of such violations in the future.
Legal basis: why is Amazon allowed to suspend an account?
The legal basis for suspended Amazon accounts can be found in the company’s general terms and conditions. Here it says under point 7 “Your account”:
„We reserve the right to withhold Amazon Services from you or terminate accounts if your behavior gives us reasonable cause to do so. This will particularly be the case if you violate applicable law, contractual agreements, our guidelines or our policies, all of which are available on our website.”
When does the behavior give justified reasons for blocking an account? Such a general requirement may be inadmissible for consumers under certain circumstances. Marketplace sellers have a more difficult time of it: In the B2B contractual relationship, there is largely freedom of contract. Amazon can decide for itself who it wants to do business with.
Nevertheless, blocking an account must be a proportionate response. If there is no or only a minor violation, those affected can take legal action to have the Amazon suspension lifted. As Amazon does not examine every case down to the smallest detail, there are certainly starting points here.
In 2018, the German Federal Cartel Office initiated abuse proceedings against Amazon. The aim is to review Amazon’s terms and conditions and behavior towards Marketplace retailers. After all, Amazon’s excessive market power could be cited as a reason why online retailers need to be protected from the internet giant, even in B2B business. However, there are certainly alternatives available to them with other sales platforms and their own online store.
Unlocking an Amazon account: legal actions
When direct communication with Amazon does not lead to a result and the account remains suspended, Marketplace sellers can consult a legal advisor. They can make a strong written demand for the Amazon seller account to be unblocked.
Sometimes even a plan of action submitted to Amazon is not enough to have the Amazon suspension lifted. In this case, those affected may even be able to enforce their claim in court or assert claims for compensation against the online giant due to the interrupted business activity.
How WBS.LEGAL can help you
In summary, a deactivated customer account represents a major economic threat for online retailers on Amazon, which can drive the retailer to the edge of ruin.
However, with the help of a lawyer, a quick and pragmatic solution can usually be found to resume operations. If it is not possible to resume business, a lawyer can also help to enforce possible claims for compensation against Amazon.
We offer an international straightforward out-of-court service that will help you to get your account cleared with legal vigour. You can easily apply by filling out the form to take advantage of our free initial assessment or book our service immediately. With pleasure we will support you in taking legal action to have your Amazon account unblocked – no matter if you are from Germany or any other country in the world.
Conclusion
Has your Amazon account been suspended? Then first try to find out the reasons via the e-commerce company’s support and try to have the suspension lifted using an Amazon action plan. If you are unable to do this, it is best to contact our experts. Call +49 221 / 57 14 32 1093 to request your free initial consultation nationwide and receive an assessment of your chances of having your Amazon account unblocked.
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We can also help with other account blockings. For example Instagram-Account, Twitch-Account, Paypal-Account, Facebook-Account, YouTube-Account.