What is the most important Amazon seller news for 2025?

The most critical news involves updates to Section 3 of the BSA, revised account-health calculations, and new inventory placement requirements.

How can I avoid Amazon account suspension in 2025?

Audit listings, maintain metrics above new thresholds, and keep authentic sourcing documents ready.

Where can I find reliable analysis of Amazon policy changes?

The AMZ Sellers Attorney® blog provides continuous, expert legal analysis of Amazon policy changes.

Will Transparency stop investigations?

Transparency lowers counterfeit risk but doesn’t eliminate investigations entirely; sellers must still maintain documentation and respond promptly.

UK Amazon Sellers Hit by Double VAT Payments: Can AMZ Sellers Attorney® Help?

2/2/2024

British Amazon sellers are in turmoil after the platform froze their payments, citing concerns about unfulfilled UK business establishment requirements. Many are left confused, frustrated, and facing financial hardship.

The Problem

Frozen Payments: Amazon froze disbursements for hundreds, possibly thousands, of UK sellers without clear explanations.
Double VAT Risk: Sellers could be forced to pay VAT twice - to Amazon and HMRC - creating a significant financial burden.
Uncertain Requirements: Many sellers are unsure what documents are needed and struggle to navigate the verification process.
Limited Support: Sellers report minimal support from Amazon, exacerbating their anxiety and frustration.

The Cause

UK Tax Law: Changes in UK tax law require Amazon to collect and remit VAT on behalf of non-UK established sellers.
Verification Process: Amazon is verifying seller information to ensure compliance with these regulations.

The Impact

Financial Strain: Frozen funds and potential double VAT payments threaten many businesses' solvency.
Lost Trust: Sellers feel frustrated and question Amazon's communication and support during this critical time.

How AMZ Sellers Attorney® Can Help

Understanding Your Rights: Navigating complex tax regulations and Amazon's policies can be challenging. AMZ Sellers Attorney® might be able to clarify your rights and responsibilities under UK law.
Reviewing Documentation: They might assist in ensuring your documentation meets Amazon's requirements and is submitted correctly.
Mediating with Amazon: If communication with Amazon proves difficult, they might represent you in seeking a resolution.

AMZ Sellers Attorney® is not affiliated with Amazon. This information is intended for general awareness and does not constitute legal advice.

The Situation Remains Fluid

The UK Small Business Commissioner is investigating the matter.
Amazon released a statement acknowledging the need for verification but sellers report issues even after submitting documents.

Stay Informed:

Monitor updates from the UK Small Business Commissioner and Amazon Seller Central forums.
Seek professional legal advice tailored to your specific situation.

Remember

You are not alone. This issue affects many UK Amazon sellers. By understanding your rights and exploring available resources, you can navigate this challenging situation and potentially protect your business.

Navigating the Maze: Protecting Your Inventory and Amazon's Unsuitable Investigations Policy

2/2/2024

Amazon Unsuitable Inventory Policy Suspension

What triggers an Unsuitable Inventory investigation in 2025? Counterfeit, safety-risk, expired, or documentation-deficient FBA units now flagged automatically by Amazon’s AI and the new “supply-chain-trace” scan.
How do you resolve the notice? Complete a five-part response: test-buy (if possible), photo proof, invoices ≤ 365 days old, supplier contact data, and an updated compliance SOP—submitted within 48 hours to avoid auto-disposal.
What happens if you ignore it? Amazon may destroy inventory, withhold funds, and now deduct a −80 Account-Health point penalty that can instantly suspend the account.

Protecting Your Inventory & Surviving Amazon’s Unsuitable Inventory Investigations (2025)

Amazon’s “Unsuitable Inventory Investigations Policy” lets the company seize or dispose of units it suspects are counterfeit, unsafe, or otherwise unfit for sale. The 2025 update tightens documentation windows (invoices must now be dated within 365 days and traceable to GS1-verified UPCs) and automatically deducts 80 points from Account Health the moment a notice is issued. Staying compliant—and responding correctly if flagged—is critical to avoid costly losses or a full account suspension.

Why Amazon Flags “Unsuitable” Inventory

Amazon’s machine-learning systems scan listings and FBA receipts for counterfeit risk signals, regulatory red flags (FDA, CPSC, CE), date-coded or perishable SKUs, and seller-level complaints. When a match occurs, a Performance Notification requests:

Purchase invoices or letters of authorization (LOA) from brand owners.
High-resolution product & packaging photos.
Compliance certificates (e.g., ASTM F963, FCC, FDA).
Proof of product condition (no damage, no expiration).

Five-Step Response Plan

1. Confirm the ASIN & Gather Facts

Match Amazon’s investigation ID to specific FNSKU lots. Check inbound-shipment records for supplier, dates, and quantities.

2. Perform a Test Buy (if MFN) or Pull Samples (if FBA)

Document the item’s authenticity and condition with unedited photos, serial numbers, and expiry dates.

3. Compile a Document Bundle

Combine invoices (≤ 365 days), supplier business licenses, compliance certificates, and a signed LOA into a single PDF under 20 MB.

4. Draft a 3-Part Plan of Action

Root Cause (why flagged) → Immediate Corrections (pulled lots, QC checks) → Preventive Measures (new supplier-vetting SOP, Transparency enrollments).

5. Submit via Performance Notification & Monitor

Use Case-log to upload files; reply within requested timeframe. Escalate through Account Health Support or an e-commerce attorney if no decision in 5 days.

Consequences of Non-Compliance

Inventory Disposal Fees, funds withholding (90–180 days), and an automatic Account Health deduction can follow if you miss deadlines or send incomplete evidence. Repeat offenses are now categorized as “Critical — High Impact,” leading to same-day suspensions.

Prevention Checklist for 2025

Source only from manufacturers with GS1-verified UPCs and request digital authenticity docs at PO stage.
Enroll high-risk SKUs in Transparency to pre-vault unique codes.
Run quarterly inventory audits; remove aging, expiring, or damaged units proactively.
Monitor Account-Health Dashboard weekly; address “Product Authenticity” alerts within 24 hours.

Need Help? Book a Free Consultation

Frequently Asked Questions

What is Amazon’s Unsuitable Inventory Investigations Policy?

It’s a 2021–2025 program policy that lets Amazon quarantine, test, or destroy units it believes are counterfeit, unsafe, or otherwise unfit, while demanding supply-chain proof from the seller.

How long do investigations take?

Typical review time is 3–7 business days after you submit documents, but complex safety cases can run 30 days.

Can Amazon destroy my inventory without refund?

Yes. If documentation is incomplete or the goods are deemed unsafe/counterfeit, Amazon may destroy or withhold stock without reimbursement per FBA terms §F-7.

What documents does Amazon accept?

Original supplier invoices (not pro-forma), dated ≤ 365 days, showing matching model/UPC; compliance certificates; LOA on brand letterhead; hi-res product photos.

How do I appeal if Amazon rejects my evidence?

Revise the Plan of Action, add additional supplier verification, and escalate via Account Health Support. For repeated denials, consult an e-commerce attorney to contact Amazon’s legal team.

Will enrolling in Transparency prevent all investigations?

No, but it greatly reduces counterfeit flags because each unit carries a serialized code Amazon can verify before fulfillment.

Amazon Seller News and Policy Updates for 2025