Amazon Seller Terms & Conditions: 2025 Compliance Guide

Selling on Amazon? Learn the Crucial Terms and Conditions for Success

Published: May 8, 2025

Amazon's marketplace offers unparalleled reach to sellers, but that opportunity comes with a strict set of terms and conditions. In 2025, Amazon has updated key policies, including a major change to its FBA reimbursement policy. Sellers who want to succeed must understand and comply with these rules. Here's everything you need to know.

Top Policies Every Amazon Seller Needs to Know

1. Business Solutions Agreement

This agreement governs your relationship with Amazon and includes binding arbitration, IP compliance, listing accuracy, and termination rights.

2. FBA Inventory Reimbursement Policy (2025 Update)

Effective March 2025, Amazon reimburses lost or damaged inventory based on manufacturing cost (not retail value). This change affects sellers of high-value items significantly. Make sure your manufacturing cost data is accurate and updated in Seller Central.

3. Account Health Rating (AHR)

AHR now ranges from 0-1,000. A score below 100 puts your account at risk of deactivation. Avoid policy violations and resolve any alerts quickly to maintain a healthy status.

4. Drop Shipping Policy

To use drop shipping, you must be the seller of record. Remove third-party branding and handle all customer service issues yourself. Non-compliance may result in account suspension.

5. ASIN Creation & Product Listings

Unauthorized ASIN creation or duplicate listings can result in listing restrictions. Only brand owners should create ASINs for their brands, and sellers must use correct product identifiers like UPCs or ASINs.

Common Violations That Lead to Suspension

• Selling prohibited or counterfeit items
• Repeated customer complaints or poor feedback
• Operating multiple seller accounts without Amazon's approval
• Manipulating reviews, sales rank, or search traffic
• Improper communication with buyers outside Amazon

Best Practices to Stay Compliant

• Monitor AHR weekly and resolve red flags
• Use FBA reports to track lost/damaged inventory and verify reimbursements
• Read Amazon updates via Seller Central regularly
• Consult with experts like AMZ Sellers Attorney® for suspensions or warnings
• Train your team on Amazon's latest policies

Conclusion

Succeeding on Amazon in 2025 means mastering its complex but essential rules. From account health to listing integrity and fulfillment compliance, staying informed and proactive is your best defense. If you receive a policy warning or face suspension, contact AMZ Sellers Attorney® for fast, experienced legal help.