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Watch out! Amazon is mercilessly cracking down on dropshipping!

Kika Angelic

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Recently, there has been a massive wave of aggressive enforcements by Amazon towards dropshippers. This time, they are not targeting just shady accounts operated by scammers based in Asia, but the company is shutting down all kinds dropshippers, including legitimate businesses operated by established US-based entrepreneurs.

Amazon is not just suspending Seller Accounts, but they are closing (“frauding”) Buyer accounts belonging to sellers who are fulfilling sales received on eBay, Walmart or other platforms by purchasing from Amazon sellers to have them ship to their customer’s addresses. This now applies even in cases where the seller isn’t using Amazon Prime for placing the dropshipping orders.

Amazon simply no longer allows anyone to fulfill commercial dropshipping orders using their site!

Suspensions related to dropshipping are now announced with a deactivation wording:

” We deactivated your Amazon.com account, because you have consistently used your Amazon account for the purpose of reselling in a violation of Amazon Terms and Conditions. ”

The following forms of business practices are no longer allowed on Amazon:

  • Buying from Amazon to fulfill Amazon orders using Amazon Prime
  • Buying from Amazon to fulfill Amazon orders (even without Amazon Prime)
  • Buying from Amazon to fulfill other marketplace orders (even without Amazon Prime)
  • Buying from Amazon to later resell on their platform (even without Amazon Prime)

Here is how Amazon detects dropshipping violations that lead to account closures:

  • Tracking numbers from Buyer Account purchases inserted into Amazon customer orders are an obvious trigger. Don’t even think about doing this!
  • Entering the same tracking number repeatedly, across different orders.
  • Entering incorrect tracking numbers showing delivery in a different country and with a different shipping date.
  • Confirming shipment and refunding.
  • Placing large volumes of purchases on Amazon to different addresses and then claiming no -receipt and seeking refunds.
  • Placing large volumes of purchases as a buyer on Amazon to different shipping addresses.

How Jacob lost access to his 17 years old Seller Account with 2 million USD yearly turnover

Jacob – a young American man, has been selling on Amazon since high school. He has a large warehouse, where he stores products purchased from other retailers for a resale. At the same time, he manages a massive dropshipping business involving eBay, Walmart, Amazon or AbeBooks. With a team of developers, he created a fully automated software, which identifies the lowest offers for a specific product, advertises the merchandise across e-commerce platforms with a small markup and then places orders and has them fulfilled directly to the customer. Thanks to this profitable business model, Jacob was able to generate millions of dollars in profits per year.

It all started two days ago, when Jacob was unable to access his 17 years old Amazon Seller Account. The login screen greeted him with the following scary message:

“ Account Closed – Your account has been closed for misuse of Amazon’s services. We have sent you an email with additional information. ”

Despite this, his Seller Account storefront remained active and orders were getting received. He was just unable to login to the Amazon Seller Central.

At the same time, Jacob received the following scary e-mail from [email protected] :

In a shock and despair, Jacob sent several frustrated e-mails as a response to the appeal option, which resulted in him getting a final decision, without realizing that he was running out of his appeal attempts:

Jacob did not understand what happened to his account and spent a lot of time searching the internet for answers. Then, he found my recent article about Seller Account Holds and subscribed to my Onlyfans page, in order to get help with his account.

What actually happened to Jacob’s Seller Account

After investigating the matter with Jacob, I informed him that his Buyer account has been placed on a hold, which is internally referred to by Amazon as a ”frauded account” or terminated / closed account.

Since his Buyer Account is closed, he is unable to access his Seller Account as well, despite it remains fully operational. Thanks to his automated software which works through API, Jacob can still remotely process Amazon orders and mark them as dispatched. This gives him more time to resolve the situation and prevent damage to his metrics.

If you would like to learn more about Amazon Account holds, read my article regarding the matter: https://seller-union.com/what-to-do-when-your-amazon-seller-account-gets-placed-on-a-hold/.

We quickly determined the cause of the Buyer Account closure – Jacob has been placing hundreds of dropshipping orders per day directly using his Buyer Account that belongs to his Seller Account.

He also told me, how he noticed that all of his other competitors – all large dropshipping businesses, appear to be suspended as well and their storefronts are empty. This reiterates that Amazon is cracking down on dropshipping.

The e-mail address from which he received the original deactivation notice is [email protected], which stands for ”dropshipping appeal”.

What is shocking about this case – the orders were not placed through Amazon Prime, they were regular purchases. Additionally, he never submitted any A-Z claims, cancellations, returns or refunds.

So this is a complete game changer! Amazon is now entirely outlawing dropshipping on their platform performed by buyers, despite they originally only prohibited misuse of the Amazon Prime Program for this purpose.

Regardless, all Amazon sellers need to remember NOT TO EVER use the Buyer Account connected to their actual Amazon Seller Account for making purchases.

I would strongly advise you not to ever buy on Amazon, if you are a seller on the platform. Even the slightest issue – such as leaving a negative Seller Feedback or requesting a return from another seller could land you into a trouble.

Additionally, you should always maintain a separate e-mail address with User Permissions into your Seller Account, which will enable you to access the Seller Central even after your Buyer Account gets closed.

Next Steps for Jacob

Jacob will need to appeal the Buyer Account closure with a good Plan of Action. We will see, if Amazon still responds through the [email protected] channel, since there were many appeal attempts made before he contacted me.

If there is no response, we will submit the appeal using different channels for executive escalations.

Here you can find the full Plan of Action, which I prepared for Jacob to appeal his Buyer Account closure: https://onlyfans.com/268410699/kikaangelic.

In case that you are a dropshipper, who is worried about his Amazon business or you already received the dreaded deactivation notice, feel free to subscribe to my OnlyFans page at www.onlyfans.com/kikaangelic, where I will assist you for $24.99 per month.

Additionally, here you can watch my YouTube video, where I am presenting you several secret tips about appealing Amazon Seller Account suspensions (don’t be confused by the opening of the video, where I am enjoying a vacation – it’s a part of the story):

Many Amazon sellers recently started trading stocks and crypto currencies, hoping to diversify their income, which is a very good idea with all the uncertainty which comes with the platform. For this reason, we launched a new Facebook group, Crypto Arbitrage Income (Bitcoin, Crypto, Altcoins, Blockchain, Trading) – feel free to join us and forget about the troubles of selling on Amazon for a moment! Regarding Amazon Seller Performance, you can always participate in our Amazon Seller Performance – Friendly Advice – Worldwide group, where you will be very welcome. If you are an Amazon Seller who needs help with any Amazon-related issues such as suspensions, listing blocks or is looking for professional assistance, please don’t hesitate to subscribe to my new OnlyFans page at: www.onlyfans.com/kikaangelic

What is Customer Service by Amazon (“CSBA”)? 

Kika Angelic

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Recently, Amazon launched a new service for their third party sellers called Customer Service by Amazon (“CSBA”). Is is basically an option for FBM (Fulfilled by Merchant” sellers to have Amazon manage all of their customer service.

It is a paid service, which is currently only offered on selected Amazon marketplaces. To be able to enroll, you need to have a Professional Selling Account in a good standing.

Here are the full CSBA Program Requirements:

  1. Enrollment: To enroll in CSBA, your account must be created on Amazon.com and be a professional selling account in good standing. We will notify you when your enrollment in CSBA is complete and will begin to provide customer services on your behalf after your enrollment is completed.
  2. CSBA Units: CSBA will provide customer service for units that you fulfilled yourself (“CSBA Units”). CSBA will not provide customer service for any non-CSBA Units, including those fulfilled by Fulfillment by Amazon (FBA) or Seller-Fulfilled Prime. We will provide customer services for CSBA Units in orders placed while you are enrolled in CSBA. If an order contains both CSBA Units and non-CSBA Units, CSBA will provide customer service only for CSBA Units.
  3. Amazon-Provided Customer Service: We will be responsible for all customer service issues relating to shipment and customer returns, refunds, and adjustments related to CSBA Units. We will determine whether a customer will receive a refund, adjustment, or replacement for any CSBA Unit, and you agree to be bound by our decisions. You also consent to deductions against your seller accounts for our decisions to allow returns or refunds.
  4. No Interference with Amazon Customer Service: You may not interfere with any communication between customers and us and you may not instruct us on how to specifically address a customer’s issues. Communications between us and customers for customer service are not recorded in Seller Central and cannot be viewed by you.
  5. Information from You: We will need information from you relating to CSBA Units to provide customer service, including information required in subsections (6)-(9). If you fail to provide information or provide wrong or incomplete information for them, we may take any measures to respond to the customer, determined by us in our discretion to best serve the customer, including cancelling or refunding the order.
  6. Valid Contact Information: We may contact you for information to respond to customer questions by email, telephone, or other means as needed. You must provide valid and current contact information to us and update it immediately in case of change.
  7. 24-Hour Response Time: When we contact you for CSBA inquiries, you must respond with complete and accurate information within 24 hours (including weekends and holidays).
  8. Tracking Numbers for Orders: You must enter a traceable order tracking number provided by the shipping carrier at the time you confirm the order shipment.
  9. Valid Return Address: You must provide a valid return address and ensure this return address is capable of accepting customer returns.

The CSBA fee is around $0.10 per customer message. Here you can review the full CSBA fee schedule: https://sellercentral.amazon.com/help/hub/reference/G92LV47D9LP2MXEF

I hope you found this article helpful. Many Amazon sellers recently started trading stocks and crypto currencies, hoping to diversify their income, which is a very good idea with all the uncertainty which comes with the platform. For this reason, we launched a new Facebook group, Crypto Arbitrage Income (Bitcoin, Crypto, Altcoins, Blockchain, Trading) – feel free to join us and forget about the troubles of selling on Amazon for a moment!

Regarding Amazon Seller Performance, you can always participate in our Amazon Seller Performance – Friendly Advice – Worldwide group, where you will be very welcome.

If you are an Amazon Seller who needs help with any Amazon-related issues such as suspensions, listing blocks or is looking for professional assistance, please don’t hesitate to subscribe to my new OnlyFans page at: www.onlyfans.com/kikaangelic

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Watch out! Amazon will be auto-destroying aged FBA inventory! 

Kika Angelic

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Recently, Amazon introduced a new measure aimed to reduce the amount of slow-selling FBA Inventory belonging to third party sellers, which are stored in their warehouses.

Any units of inventory, which Amazon considers to be aged will be automatically destroyed at the seller’s expense!

The following inventory is subject to automated removal:

  • Units that have been in fulfillment centers for more than 365 days and that are subject to long-term storage fees
  • Units of ASINs that haven’t sold in six or more consecutive months and that have been in fulfillment centers for more than 180 days

Since Amazon requires a local return address for FBA Inventory removals, if you are based outside of the marketplaces, where your stock is stored, you risk having it automatically destroyed, unless you have a local return address on file for such removals.

Amazon’s default Automated Aged Inventory Removal setting is disposal, so you should immediately go and check your settings.

Here is a screenshot of Amazon’s e-mail announcement regarding the matter:

Here is a copy of the full wording in English:

Your aging inventory is at risk of disposal

Hello,

You currently have units of aging inventory that are at risk of immediate automated removal and disposal.

For the past several months, we’ve been reaching out to inform you that the following inventory will be automatically disposed:

Units that have been in fulfillment centers for more than 365 days and that are subject to long-term storage fees
Units of ASINs that haven’t sold in six or more consecutive months and that have been in fulfillment centers for more than 180 days
Go to Manage Inventory Health to see the units that will be subject to immediate or upcoming automated disposal.

If you don’t update your settings to manage your aging inventory, Amazon may dispose of these units in the manner we deem appropriate. We may also retain any proceeds from the disposal. 

Go to Automated fulfillable inventory settings to choose how to manage aging inventory: 
Select Return and enter a valid return address to have your inventory returned to you. Due to the high volume of requests during this period, it may take up to 90 days to process the return of your inventory. To avoid further delays, make sure that returns are accepted when delivered to your address.
Select Liquidation to recover value from your eligible products.
Select Disable to opt out of automated removals at any time.

The Fulfillment by Amazon team

I hope you found this article helpful. Many Amazon sellers recently started trading stocks and crypto currencies, hoping to diversify their income, which is a very good idea with all the uncertainty which comes with the platform. For this reason, we launched a new Facebook group, Crypto Arbitrage Income (Bitcoin, Crypto, Altcoins, Blockchain, Trading) – feel free to join us and forget about the troubles of selling on Amazon for a moment!

Regarding Amazon Seller Performance, you can always participate in our Amazon Seller Performance – Friendly Advice – Worldwide group, where you will be very welcome.

If you are an Amazon Seller who needs help with any Amazon-related issues such as suspensions, listing blocks or is looking for professional assistance, please don’t hesitate to subscribe to my new OnlyFans page at: www.onlyfans.com/kikaangelic

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Amazon launches Small Business badges available to Handmade Sellers

Kika Angelic

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Recently, Amazon started displaying ”Small Business” badges and supplementary wording next to offers from storefronts belonging to Amazon Handmade merchants:

”Shop products from small business brands sold in Amazon’s store. Discover more about the small businesses partnering with Amazon and Amazon’s commitment to empowering them.”

Currently, there is no option for sellers to opt in and only selected accounts are eligible for this badge. A page with more information can be found here: https://www.amazon.com/b?node=18018208011&ref=sbp_dpb_01B

Here you can view a screenshot of the badge being displayed:

Here is a screenshot of the page with information:

I hope you found this article helpful. Many Amazon sellers recently started trading stocks and crypto currencies, hoping to diversify their income, which is a very good idea with all the uncertainty which comes with the platform. For this reason, we launched a new Facebook group, Crypto Arbitrage Income (Bitcoin, Crypto, Altcoins, Blockchain, Trading) – feel free to join us and forget about the troubles of selling on Amazon for a moment!

Regarding Amazon Seller Performance, you can always participate in our Amazon Seller Performance – Friendly Advice – Worldwide group, where you will be very welcome.

If you are an Amazon Seller who needs help with any Amazon-related issues such as suspensions, listing blocks or is looking for professional assistance, please don’t hesitate to subscribe to my new OnlyFans page at: www.onlyfans.com/kikaangelic

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