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Amazon Seller News and Policy Updates for 2025

Expert Analysis: Amazon Seller Policy Updates & News for 2025

Your expert source for the latest 2025 Amazon seller news, policy changes, and legal analysis. This guide covers critical updates to the Amazon Business Solutions Agreement (BSA), account health metrics, and compliance strategies to prevent account suspensions. Published by AMZ Sellers Attorney®, a law firm specializing in Amazon seller rights.

Key Amazon Policy Changes for 2025

  • Stricter Listing Compliance: Amazon is increasing enforcement against non-compliant images, keyword stuffing in titles, and unverified product claims.
  • Updates to Business Solutions Agreement (BSA): Notable changes impact dispute resolution clauses, intellectual property (IP) complaint handling, and return policies.
  • Revised Account Health Metrics: Amazon has adjusted the thresholds for the Order Defect Rate (ODR) and Late Shipment Rate (LSR), requiring stricter operational performance.

Legal Guidance for Amazon Sellers

AMZ Sellers Attorney® provides proactive legal audits and expert assistance in navigating complex Amazon policies to protect your business from deactivation.

Frequently Asked Questions for 2025

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 rating calculations, and new inventory placement requirements. Our blog provides continuous analysis of these trends.

How do I prevent an Amazon account suspension in 2025?

To prevent suspension, regularly audit your listings for compliance, maintain excellent performance metrics above the new thresholds, and ensure your sourcing documentation (invoices, letters of authorization) is always ready for review.

Where can I find reliable analysis of Amazon policy changes?

AMZ Sellers Attorney®'s news blog offers expert legal analysis, breaking down complex policy changes into actionable advice for sellers.

Why Shipping Performance is a Key Factor for Amazon Account Health

10/31/2024

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Amazon places great value on customer experience and policy compliance and wants its sellers to be in the same boat. 
To ensure that sellers follow the policy guidelines and prioritize customers, Amazon sets account health metrics to track the health status of every seller account. These health metrics consist of various factors, including shipping performance.

​This blog reviews what Amazon Account Health is and why shipping performance is necessary for maintaining a healthy Amazon account. It also provides a deeper look at the key shipping performance metrics and proven strategies to improve Amazon shipping performance
.


What Is Amazon Account Health?

Amazon Account Health represents the overall status of your seller account, evaluated through various performance metrics and adherence to Amazon's policies.

Maintaining strong account health is essential as it influences your ability to sell on Amazon, affects your visibility in search results, and impacts your chances of winning the Buy Box (Featured Offer). If not managed properly, poor account health can lead to account suspension or deactivation.

The key metrics of Amazon Account Health consist of three main areas: Customer Service, Policy Compliance, and Shipping Performance. These metrics are visible on your Account Health Dashboard.
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Account Health Rating (AHR)


The
Account Health Rating (AHR) provides a numerical score that reflects the overall health of your seller account. This score can vary based on multiple performance factors, offering a general overview of your account's condition.

You can view your AHR score on the Account Health page at the top of the policy compliance box. The score is categorized into three distinct zones: Healthy, At Risk, and Deactivated, each with a different score range and color code.
​
  • Green: An AHR score of 200 or above falls in the "Healthy" range, displayed in green on your screen.
  • Yellow: Scores between 100 and 199 are considered "At Risk."
  • Red: If your score drops below 100, it will display in red, indicating eligibility for deactivation. Immediate attention to listing violations is essential if this occurs.
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Three Key Areas Affecting Amazon Account Health

As mentioned above, Amazon account health consists of three key areas:

  1. Order Defect Rate (ODR): It is the rate of orders that have some kind of defect, including receiving negative feedback, an A-to-Z guarantee claim, or a service credit card chargeback. 
  2. Policy Compliance: It concerns complying with Amazon’s policies and guidelines. Violation of these policies damages account health.  
  3. Shipping Performance: It measures the quality of shipping and tracking service provided by the seller and whether the products were shipped on time.

Here, we will focus on the third metric, Shipping Performance, and how it affects the overall health of your seller account.

Amazon Shipping Performance ​

Shipping performance is a crucial aspect of your overall success as an Amazon seller. Not only does it influence your search ranking and eligibility for Prime programs, but it also impacts your sales and brand reputation.

Tip: Difference Between ‘Shipment’ and ‘Delivery’ 
​
It's important to understand the difference between shipment and delivery as these terms are often confused with one another. 

Shipment indicates that the seller has handed the package to a shipping carrier and marked it as shipped on Amazon. The customer can now track the package.
Delivery means that the package is actually delivered to the customer’s address. The delivery date depends on the shipping method and the delivery provider’s service level.

Understanding Amazon Shipping Performance Metrics ​

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Sellers can manage their performance and compliance issues through the Account Health page in Seller Central. This portal provides a dedicated section titled "Shipping Performance," where you can easily monitor your shipping performance metrics. These metrics are:

1. Late Shipment Rate (LSR)

Aim to keep your Late Shipment Rate below 4%, which means at least 96% of your orders should be shipped on time within the past 30 days. This metric is particularly critical if you sell to business customers, as they can view your On-Time Shipping rate. Here are some strategies to reduce late shipments:
  • Ship orders as quickly as possible after they are placed.
  • Mark orders as shipped immediately once dispatched.
  • If you fail to confirm dispatch within 7 days of the Ship-By date, Amazon will auto-cancel the order, negatively impacting your LSR.


2. Pre-Fulfillment Cancel Rate (PFCR)
​

This metric tracks the percentage of self-fulfilled orders you cancel before dispatching. To maintain account health, your PFCR should be below 2.5%, and under 0.5% to qualify for Premium Shipping. Consider the following tips to minimize pre-fulfillment cancellations:
  • Only cancel orders for legitimate reasons, such as stock-outs or buyer requests.
  • Optimize your listings to reduce non-standard cancellation requests, which can affect your PFCR.
  • If you encounter unresponsive buyers or undeliverable addresses, you cannot block them, but you can report them to Amazon. However, your PFCR will still be impacted if you cancel their orders.
  • If Amazon auto-cancels an order due to a detected fraudulent buyer or payment
  • verification issues, your PFCR will not be affected.
  • Tracking numbers must be uploaded before the delivery date.
  • Each shipment should have at least one carrier scan (or two for shipments from China) and a delivery scan.
  • Use Amazon-integrated carriers for items shipped from China.
  • Any shipment delivered more than 17 days after the Promised Delivery date is considered to have invalid tracking, regardless of delivery scans.]

    ​3.  Valid Tracking Rate (VTR)                                                                                                                                             The Valid Tracking Rate measures the percentage of tracking numbers you upload in a 30-day period that Amazon recognizes as valid. The minimum acceptable rate is 95%, and you receive one VTR for each product category you sell. To stay compliant, review the latest requirements on the official VTR help page. Key rules include:
  • Tracking numbers must be uploaded before the delivery date.
  • Each shipment should have at least one carrier scan (or two for shipments from China) and a delivery scan.
  • Use Amazon-integrated carriers for items shipped from China.
  • Any shipment delivered more than 17 days after the Promised Delivery date is considered to have invalid tracking, regardless of delivery scans.

On-Time Delivery Rate (OTDR) For Amazon FBM Sellers

The On-Time Delivery Rate (OTDR) assesses the percentage of Fulfilled by Merchant (FBM) products delivered to customers by or before the seller's specified "Delivery Date." This date is set by Amazon sellers and does not include any promised extensions.

As of September 25, 2024, Amazon has revised its OTDR policy. The updated guidelines require FBM sellers to maintain a minimum OTDR of 90% without extending the promised delivery dates to ensure optimal performance of their Amazon accounts. However, Amazon recommends maintaining an OTDR of 95% or higher for an even better buyer experience.
 
This policy does not apply to products using Fulfillment by Amazon (FBA) services, as sellers are not responsible for the on-time delivery commitments of FBA orders.

​

​Poor Shipping Performance: 10 Negative Effects on Your Amazon Account

Failing to meet Amazon’s shipping standards can lead to ten crucial negative outcomes:
​

  1. Suspension: Amazon may suspend listings, restrict selling rights, or withhold funds for sellers who don’t meet shipping standards.
  2. Customer Dissatisfaction: Late deliveries are one of the biggest factors of customer dissatisfaction. If the customers are not happy, you’ll get negative reviews and low seller ratings, diminishing your brand trust. 
  3. Low Visibility: Poor shipping performance can lower a seller's ranking in Amazon's search results, making it harder for buyers to find these products.
  4. Penalties and Fines: Amazon may impose penalties or fines on sellers who consistently fail to meet shipping commitments. These penalties can be financial and impact the seller’s profitability.
  5. Limited Shipping Options: Sellers who don't maintain a Perfect Fulfillment Completion Rate (PFCR) below 0.5% risk losing access to Premium Shipping, preventing them from offering one-day or two-day shipping.
  6. Fewer Buy Box Wins: Shipping performance impacts how often a seller wins the Buy Box, which is essential for visibility and sales. Bad shipping performance will result in losing this huge opportunity. 
  7. Competition and Loss of Sales: Sellers in highly competitive markets may lose potential sales to competitors who can offer faster shipping. Customers often prioritize fast and reliable delivery, so delays can result in lost sales opportunities.
  8. Low Account Health Rating: Unsatisfactory shipping performance can result in a low AHR which, in turn, leads to the risk of account suspension and deactivation. 
  9. Cancellations and Returns: A significant delay in order fulfillment can force the customer to cancel the order or return it upon delivery, leading to a higher ODR.
  10. Inventory Management Issues: Poor shipping performance can result in inventory management hassles. Having items in transit and adjusting stock levels to account for returns and cancellations can be very inconvenient.

Strategies to Enhance Amazon Shipping Performance

These eight key strategies will help you improve your Amazon shipping performance and mitigate the effects of negative poor performance.

1. Prepare for Potential Shipping Delays
​

Shipping delays can challenge e-commerce operations, but proactive planning can help minimize the impact and maintain customer satisfaction. Here are two strategies:

  • Multiple Suppliers: Partnering with multiple suppliers increases sourcing flexibility. If one supplier encounters delays, others can step in to fulfill orders and keep deliveries on schedule.
  • Diverse Fulfillment Options: Consider a blend of fulfillment methods, including Amazon’s Fulfillment by Amazon (FBA), third-party logistics (3PL) providers, and self-fulfillment. This variety allows you to adapt as delivery needs change.

    2. Manage Inventory Smartly    

Maintain a buffer of essential or high-demand items that can be shipped promptly if delays arise. Identify your most popular products and ensure these are included in your safety stock.

Use just-in-time (JIT) inventory management to reduce excess holding costs while ensuring you have the right products in stock. Monitor sales and trends closely to keep inventory levels aligned with demand.

3. Communicate with Customers

Always keep your customers informed. If a product may be delayed, notify them early, offering options to wait or cancel. Address inquiries about shipping delays promptly to show your commitment to customer satisfaction.
Set realistic delivery timelines to manage customer expectations. Regularly review and adjust delivery promises based on data, carrier performance, and external factors affecting shipping.

4. Use Fulfillment by Amazon (FBA)

Consider using FBA, where Amazon manages storage, packing, and shipping, often providing faster, more reliable delivery. FBA also makes products Prime-eligible, appealing to customers who prefer fast shipping.
​

5.  Use Prime Shipping Advantages
If possible, offer Prime-eligible products to benefit from Amazon’s fast, reliable shipping. Prime members tend to prioritize fast shipping, which can help broaden your customer base. Ensure that your listings meet Amazon’s Prime requirements and standards.

6.  Explore Alternative Shipping Methods
​
  • Seller-Fulfilled Prime (SFP):
    SFP lets you handle Prime orders directly, maintaining control over the shipping process while providing Prime benefits. To access it, you should meet Amazon’s performance criteria and shipping standards.
  • Third-Party Logistics (3PL) Services:
    Partner with a 3PL provider to expand shipping capabilities. A 3PL can provide warehousing, order fulfillment, and efficient shipping, offering flexibility to navigate delays.
​
7.  Proactively Manage Customer Feedback
Respond professionally to customer concerns about delays, providing updates and solutions where possible. Thoughtful customer service can turn a potentially negative experience into a positive one.

Keep customers informed about potential delays with transparent delivery information. Send tracking updates, delivery status notifications, or emails in case of delays to manage expectations.
8.  Encourage Positive Reviews

Encourage satisfied customers to leave positive reviews to balance any negative feedback from delays. Remember to follow Amazon’s review policies to ensure compliance.


Final Thoughts

Optimum shipping performance is crucial for maintaining robust Amazon account health. It allows sellers to achieve consistent visibility, customer trust, and business growth on Amazon. 

By improving key metrics like Late Shipment Rate, Pre-Fulfillment Cancel Rate, and Valid Tracking Rate, sellers can enhance their delivery reliability, meet customer expectations, and reduce risks of suspension or deactivation.

Effective shipping performance not only improves the Account Health Rating but also contributes to securing the Buy Box, reducing penalties, and driving competitive advantage. Prioritizing these areas enables sellers to build a sustainable and high-performing Amazon account.

​

FAQs

1. What is the importance of shipping performance for Amazon Account Health?
Shipping performance is a critical metric Amazon uses to evaluate seller reliability and customer satisfaction. Poor shipping performance affects visibility, eligibility for Prime, Buy Box opportunities, and even account suspension risk. Maintaining strong shipping metrics is essential to avoid penalties, preserve account health, and ensure positive customer experiences.
2. What happens if my Late Shipment Rate (LSR) exceeds Amazon’s target?
If your LSR exceeds Amazon’s 4% threshold, your account health can be negatively impacted. This can lead to penalties like loss of Premium Shipping options, lower search ranking, and reduced Buy Box wins. Consistently high LSR can even lead to account suspension, so it’s important to keep shipments timely and track performance closely.
3. How can I monitor my shipping performance metrics on Amazon?
Sellers can access and track shipping metrics through the Account Health page in Seller Central. Here, you can monitor key indicators like Late Shipment Rate, Pre-Fulfillment Cancel Rate, and Valid Tracking Rate, which are displayed within the "Shipping Performance" section. Regular monitoring helps ensure metrics stay within acceptable ranges.
4. What is the difference between Fulfillment by Merchant (FBM) and Fulfillment by Amazon (FBA)?
Fulfillment by Merchant (FBM) allows sellers to handle their own storage and shipping, provided they meet Amazon’s performance standards. In contrast, Fulfillment by Amazon (FBA) means Amazon handles storage, packing, and shipping. 
5. What strategies can I use to reduce pre-fulfillment cancellations?
To minimize pre-fulfillment cancellations, avoid over-promising on inventory and only cancel for valid reasons, like stock shortages. Keep listings updated to prevent order errors and consider inventory management practices that align stock levels with demand. Communicate with customers proactively if issues arise to mitigate cancellation impacts on account health.

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Amazon Updates Valid Tracking Rate (VTR) for 2025: Key Requirements for Sellers

10/31/2024

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Amazon Updates Valid Tracking Rate (VTR) for 2025: Key Requirements for Sellers; amazon robots

Amazon’s Updated Valid Tracking Rate (VTR) Guidelines for 2025

Published on October 31, 2024 by AMZ Sellers Attorney®

Amazon has announced significant updates to its Valid Tracking Rate (VTR) requirements for seller-fulfilled orders, which take effect on January 15, 2025. These adjustments aim to enhance customer satisfaction by ensuring more consistent tracking on deliveries. Below, we break down the main changes and their impact on Amazon sellers worldwide.

Understanding the New Valid Tracking Rate Requirements

The VTR is a critical performance metric on Amazon, requiring sellers to provide valid tracking information on at least 95% of orders. As of January 2025, Amazon will measure VTR for all shipping providers, not just Amazon-integrated carriers, broadening the policy’s scope and enhancing transparency in order tracking.

Key Updates to VTR by Region and Order Value

To maintain a compliant VTR, sellers shipping to the U.S. from specific regions will now need to include tracking scans based on the shipment’s origin and value. Here’s a closer look at the details:

  • Shipments from China, Canada, American Samoa, and the U.S. Minor Outlying Islands:
    • Orders valued under $5 USD* require at least one valid carrier scan.
    • Orders valued at $5 USD or more must include two scans: one at the carrier’s facility and another at delivery or delivery attempt.
  • Shipments from India and the UK:
    • For packages valued under $15 USD*, one carrier scan is sufficient.
    • Orders valued at $15 USD or more require two scans: a scan at the carrier’s facility and a delivery or attempted delivery scan.

*All values exclude taxes and include shipping charges.

Exemptions to the VTR Policy

Amazon has also clarified specific exemptions to VTR requirements, which include:

  • Digital products
  • Domestic shipments using untracked services like USPS Standard Mail or USPS First Class for packages under $10 USD*
  • Low-value packages shipped from the UK or India under Amazon-integrated, untracked services valued under $15 USD*
  • Shipments from regions other than the U.S., Canada, the UK, India, American Samoa, the U.S. Minor Outlying Islands, or China

Impact of VTR Compliance on Seller Performance

Failing to meet the 95% VTR threshold may result in deactivation of seller-fulfilled listings, affecting order visibility and account health metrics. Consistent tracking minimizes A-to-z claims and negative feedback, helping to protect seller performance.

What Sellers Need to Do to Stay Compliant

Sellers should prepare by verifying that tracking information aligns with these updated guidelines. Using compliant carriers and services will help ensure seamless tracking data, preserving account health and customer satisfaction.

For more information on adapting to these VTR changes, contact AMZ Sellers Attorney® for expert guidance on compliance and performance optimization.

© 2024 AMZ Sellers Attorney®. All rights reserved.

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Chinese Cities Lead Amazon Seller Network, Surpassing US Hubs

10/31/2024

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Chinese Cities Dominate Amazon Seller Network, Outnumbering US Hubs

Published on October 31, 2024 by AMZ Sellers Attorney

In a striking shift in global e-commerce, recent research reveals that cities in China have overtaken US regions as the leading hubs for Amazon sellers. With Shenzhen at the forefront, Chinese sellers now represent the majority of Amazon’s third-party seller network. This trend reflects how the country’s robust manufacturing and tech ecosystems position it as a top player on the Amazon marketplace.

Chinese Seller Hubs by the Numbers

According to Marketplace Pulse, over 40% of Amazon’s top sellers are based in China, with Shenzhen alone hosting nearly one-third of Chinese sellers. This city, alongside Guangzhou and other key regions, benefits from substantial support from local trade policies aimed at boosting cross-border e-commerce. The concentration of Chinese sellers is especially high in Guangdong province, which encompasses both Shenzhen and Guangzhou, further establishing China’s dominance in the Amazon ecosystem.

Key Factors Driving the Dominance

Chinese sellers leverage close access to manufacturing facilities, competitive production costs, and the infrastructure support of platforms like Amazon’s Fulfillment by Amazon (FBA). These factors allow them to offer low-cost products with competitive shipping, a model that appeals to Amazon’s global customer base. Additionally, Amazon has actively engaged Chinese businesses, holding annual summits and promoting seller services to encourage growth on the platform.

Regulatory and Market Challenges

While Chinese sellers have gained significant market share, regulatory tensions and Amazon’s crackdown on fake reviews and counterfeit goods have created challenges. For instance, Amazon’s recent efforts to enforce platform integrity led to the removal of thousands of accounts, many of which belonged to high-profile Chinese brands. These enforcement actions underscore the pressures faced by Chinese sellers to comply with Amazon’s rules, particularly as Amazon intensifies efforts to curb deceptive practices.

What This Means for Sellers in Other Countries

The dominance of Chinese sellers signals new competitive dynamics for U.S. and European sellers on Amazon. With the high volume of Chinese products, other sellers face pricing pressures and the need to differentiate with quality and brand reputation. For U.S. sellers, in particular, this trend emphasizes the importance of compliance and strong customer trust, as competitive practices intensify.

Future Implications for Amazon’s Marketplace

While Shenzhen and other Chinese cities currently lead Amazon’s seller network, factors like changing trade policies, Amazon’s continued regulatory efforts, and evolving consumer preferences could influence the landscape. Analysts suggest that the market may soon plateau, though Chinese sellers are expected to maintain a strong presence given the logistical advantages and support from local economic policies.

For more guidance on navigating the complex Amazon landscape, contact AMZ Sellers Attorney for expert support in e-commerce compliance and dispute resolution.

© 2024 AMZ Sellers Attorney. All rights reserved.

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Amazon's Sustainability Packaging Initiatives: How Sellers Benefit in 2024

10/30/2024

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Amazon's Sustainability Packaging Initiatives: How Sellers Benefit in 2024 Amazon Robots

Amazon Claims to Improve Packaging for Better Sustainability

Date Published: October 30, 2024

Author: AMZ Sellers Attorney®

Across the globe, Amazon continues to find innovative ways to reduce its packaging while making the materials used easier to recycle. In 2024, Amazon implemented several key initiatives aimed at improving packaging sustainability. These efforts not only benefit the environment but also contribute to an enhanced customer experience. Let’s take a closer look at the initiatives Amazon has launched to reduce its environmental impact, all while maintaining efficient delivery services for customers.

1. Ships in Product Packaging Program

In 2024, Amazon expanded its **Ships in Product Packaging (SIPP)** program, which certifies products that can be safely shipped in their original manufacturer’s packaging, eliminating the need for additional Amazon-branded packaging. This program ensures that items arrive securely without extra materials like boxes or envelopes. By using machine learning, seller engagement, and product testing, Amazon was able to certify nearly **four million products** under this initiative. These advancements reduce unnecessary waste and streamline the delivery process, creating a win-win for sellers, customers, and the environment.

2. Expansion of Paper-Based Packaging

When additional packaging is needed to ensure safe delivery, Amazon prioritizes using **paper-based packaging solutions**. These materials are easier to recycle through local recycling programs, helping to reduce the environmental footprint. In a significant move toward sustainability, Amazon announced that as of **October 2024**, it has completely eliminated the use of plastic air pillows at its global fulfillment centers. This shift towards recyclable materials demonstrates Amazon’s commitment to reducing single-use plastic and improving the recyclability of its packaging.

3. Reduced Packaging and Efficient Solutions

Another major focus for Amazon has been to reduce the amount of packaging used for deliveries. Using machine learning, Amazon has designed models to determine the **most efficient type of packaging** for each item, minimizing the use of excess materials such as cardboard boxes, fillers, tape, and bags. These models have already been widely implemented in Amazon’s fulfillment centers across **North America** and **Europe**, and are now being expanded to regions such as **India**, **Australia**, and **Japan**. This packaging optimization helps reduce the overall volume of materials, contributing to a greener supply chain.

How These Changes Impact Amazon Sellers

These sustainability initiatives not only reflect Amazon’s commitment to environmental responsibility but also have a direct impact on sellers. By participating in programs like Ships in Product Packaging, sellers can reduce the costs associated with additional packaging materials. Additionally, products that are eco-friendly or use minimal packaging may appeal to environmentally conscious customers, boosting sales. As Amazon continues to innovate in this area, sellers can benefit by aligning their practices with these sustainable initiatives.

Looking Ahead: What Sellers Can Do

Amazon’s ongoing focus on packaging sustainability offers opportunities for sellers to actively participate in creating a more eco-friendly supply chain. Here’s how sellers can get involved:

  • Evaluate Product Packaging: Ensure that your products can be certified under Amazon’s Ships in Product Packaging program to minimize excess packaging.
  • Optimize Your Listings: Highlight eco-friendly features, such as sustainable packaging, in your product descriptions to attract environmentally conscious shoppers.
  • Stay Informed: Keep up with Amazon’s updates on packaging requirements and sustainability initiatives to ensure compliance and maximize your sales potential.

By participating in these programs and adapting to Amazon’s sustainability goals, sellers can reduce costs, improve brand image, and contribute to a healthier planet.

Conclusion

Amazon’s commitment to reducing packaging waste and improving sustainability is an important step toward a more eco-friendly future. Through programs like Ships in Product Packaging, expanding paper-based materials, and reducing overall packaging, Amazon is setting a new standard for responsible e-commerce. Sellers who engage with these initiatives stand to benefit from reduced packaging costs, improved customer satisfaction, and alignment with the global push for sustainability.

For more information on how to navigate these changes and align your business with Amazon’s sustainability goals, contact **AMZ Sellers Attorney®**. We can help you stay compliant and competitive in today’s evolving marketplace.

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Amazon’s Project Amelia: AI Assistant for Sellers Now Live

10/28/2024

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Amazon’s Project Amelia: AI Assistant for Sellers Now Live

Amazon's Project Amelia: The AI-Driven Assistant for Sellers

Date Published: October 28, 2024

Author: AMZ Sellers Attorney

Amazon has officially launched **Project Amelia**, an innovative **AI-driven assistant** that promises to transform how sellers manage their businesses on the platform. By providing real-time insights, tracking performance metrics, and automating daily tasks, Project Amelia is designed to make seller operations more efficient and data-driven, allowing sellers to focus on growth and profitability.

What is Project Amelia?

**Project Amelia** is Amazon’s response to the growing demand for **automation and data-driven decision-making** in the fast-paced world of e-commerce. Built with advanced artificial intelligence and machine learning capabilities, this assistant simplifies many aspects of running an Amazon seller account, ranging from monitoring inventory levels to tracking key performance indicators (KPIs) such as sales trends and order defect rates.

By utilizing **natural language processing (NLP)**, Project Amelia allows sellers to ask questions in plain language, providing quick and actionable answers. For example, sellers can ask Amelia, “What was my best-selling product last month?” or “How can I improve my customer feedback score?” and receive data-backed recommendations within seconds.

Key Features of Project Amelia

1. Real-Time Business Insights

One of Project Amelia’s standout features is its ability to deliver **real-time business insights**. Sellers can access up-to-the-minute reports on sales performance, inventory health, and customer behavior, enabling them to make timely adjustments. Whether it's optimizing product listings or preparing for peak sales periods, Amelia’s insights help sellers stay ahead of the competition.

2. Automated Task Management

Managing an Amazon seller account involves many repetitive tasks, such as responding to customer inquiries, updating product details, or checking inventory levels. Project Amelia automates many of these routine operations, freeing up valuable time for sellers to focus on strategic activities. Sellers can set automatic alerts for low inventory, flag negative reviews for immediate attention, and more.

3. Performance Metrics Tracking

Performance metrics such as the **Order Defect Rate (ODR)**, **Inventory Performance Index (IPI)**, and **customer satisfaction scores** are crucial to maintaining a healthy Amazon seller account. Amelia monitors these metrics in real time, alerting sellers to any potential issues and offering suggestions for improvement. With Amelia’s help, sellers can proactively address performance issues before they lead to account suspensions or other penalties.

4. Data-Driven Recommendations

Beyond just providing insights, Project Amelia leverages machine learning to deliver **data-driven recommendations** that help sellers optimize their businesses. For instance, Amelia might recommend adjusting prices to stay competitive in certain product categories or suggest bundling items based on historical sales data. These actionable recommendations help sellers stay agile in a constantly shifting marketplace.

Why Sellers Should Embrace Project Amelia

With the e-commerce landscape becoming increasingly competitive, automation tools like Project Amelia are essential for scaling operations while maintaining efficiency. **Project Amelia’s AI-driven capabilities** not only simplify everyday tasks but also provide deeper insights that allow sellers to make informed, strategic decisions. Sellers who take full advantage of this tool can expect to see improvements in both productivity and profitability.

1. Boost in Efficiency

By automating routine tasks, sellers can save hours each week that would otherwise be spent on manual operations. For growing businesses, this boost in efficiency can translate into faster scaling and better overall performance.

2. Improved Decision-Making

With access to real-time data and personalized recommendations, sellers can make decisions that are more informed and proactive. Whether it’s choosing which products to restock or deciding on a promotional strategy, Project Amelia offers a data-driven approach to business management.

Conclusion: The Future of Selling on Amazon

As e-commerce continues to evolve, tools like Project Amelia are setting the stage for the future of selling on Amazon. By streamlining day-to-day operations and providing invaluable business insights, this AI-driven assistant empowers sellers to focus on growth and long-term success.

Sellers who adopt Project Amelia early on will gain a competitive edge by staying informed, efficient, and data-savvy. Whether you’re a seasoned seller or new to the platform, Project Amelia represents the next step in Amazon’s mission to support seller success.

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Florida Amazon Sellers Sue Over Account Deactivations

10/26/2024

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Florida Amazon Sellers Sue Over Account Deactivations amazon robots

Florida Amazon Sellers File Lawsuit Over 400 Account Deactivations

A recent lawsuit filed in Florida by a group of Amazon sellers is making waves in the e-commerce world. The lawsuit, which accuses Amazon of unlawfully shutting down over 400 seller accounts, claims that these deactivations resulted in substantial financial losses for the sellers, many of whom depended on Amazon as their primary source of income. The lawsuit alleges that Amazon acted arbitrarily and without providing adequate justification, violating the sellers' rights and leading to millions of dollars in withheld earnings.

The Legal Grounds for the Lawsuit

According to the lawsuit, the affected sellers claim that Amazon’s actions were unjust and detrimental to their businesses. The sellers assert that Amazon provided little to no explanation for the deactivation of their accounts, leaving them unable to access their funds or appeal the decisions effectively. Many sellers report experiencing a lengthy and opaque appeals process, further exacerbating their financial and operational challenges.

Challenges the Lawsuit Faces

Despite the allegations made by the sellers, this lawsuit will likely face several legal hurdles. One of the primary obstacles is Amazon’s Business Solutions Agreement (BSA), a contract that governs the relationship between Amazon and its third-party sellers. The BSA contains several key clauses that could significantly impact the lawsuit:

  • Arbitration Clause: The BSA includes an arbitration clause that requires all disputes between sellers and Amazon to be resolved through arbitration, not through the courts. This means that the lawsuit could be dismissed on the grounds that it has been filed in the wrong venue.
  • Prohibition of Class Actions: Section 18 of the BSA explicitly prohibits sellers from filing class actions or representative actions against Amazon. Instead, sellers must file individual claims. This clause poses a serious challenge to the current lawsuit, as it was filed on behalf of multiple sellers, effectively forming a class action.

Amazon's Arbitration Clause and Class Action Prohibition

The arbitration clause in Amazon’s BSA is designed to funnel all disputes through individual arbitration, a private dispute resolution process that avoids the traditional court system. Sellers who agree to the BSA must resolve any issues or disputes with Amazon through this process, which often limits the scope of legal recourse available to them.

Additionally, Section 18 of the BSA bars sellers from pursuing class actions or representative lawsuits. This clause ensures that each seller must file an individual claim against Amazon, making it more difficult for sellers to band together to challenge Amazon’s practices. This class action prohibition could undermine the Florida lawsuit, as Amazon will likely argue that the sellers cannot file a collective action in court.

The Sellers' Argument

The plaintiffs in this lawsuit argue that Amazon’s account deactivations were unjust and that they were not given adequate notice or opportunity to resolve the issues that led to the deactivations. They claim that Amazon’s actions violated its own policies and were detrimental to their livelihoods. Furthermore, the sellers allege that Amazon has engaged in a pattern of arbitrary account suspensions, disproportionately affecting smaller sellers and those who rely on Amazon as their primary sales platform.

Potential Outcomes of the Lawsuit

Given the presence of the arbitration clause and the class action prohibition, Amazon is expected to file motions to dismiss the lawsuit on procedural grounds. If the court rules in favor of Amazon, the sellers may be forced to pursue their claims through individual arbitration, rather than in court as a group. This would likely weaken the sellers’ position, as arbitration tends to favor large corporations like Amazon due to its private, less formal nature.

However, if the sellers are able to overcome these procedural challenges, the lawsuit could proceed to trial. A favorable ruling for the sellers would not only result in potential financial compensation but could also prompt Amazon to reconsider its account suspension policies and provide greater transparency to sellers moving forward.

Implications for Amazon Sellers

This lawsuit has significant implications for all Amazon sellers, especially those who have experienced account suspensions. The case highlights the importance of understanding Amazon’s Business Solutions Agreement and the legal limitations it places on sellers. It also underscores the need for sellers to be aware of their rights and the legal options available to them if they face account deactivation or suspension.

For sellers affected by account deactivation, it is critical to seek professional legal advice to navigate the complex arbitration process and to ensure that their rights are protected. Legal representation can help sellers craft compelling Plans of Action (POA) and navigate the appeals process to get their accounts reinstated as quickly as possible.

Conclusion

The lawsuit filed by Amazon sellers in Florida is a significant development in the ongoing debate about Amazon’s treatment of its third-party sellers. While the lawsuit faces procedural challenges due to Amazon’s BSA, it has drawn attention to the broader issue of account deactivations and the impact they have on sellers’ businesses. Whether or not the sellers succeed in their legal challenge, this case underscores the importance of understanding the contractual agreements that govern the seller-Amazon relationship and the need for clear and fair policies to protect sellers’ interests.

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Search Business Reports by ASIN for Enhanced Performance Insights

10/26/2024

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Amazon Robots Search Business Reports by ASIN for Enhanced Performance Insights

Search Business Reports by ASIN to Easily Analyze Metrics

Published on: October 26, 2024 by AMZ Sellers Attorney

Improved ASIN Search Functionality in Seller Central

Amazon has listened to your feedback and made a crucial update: you can now filter business reports data by ASIN directly within Seller Central. This new search tool enables sellers to analyze performance metrics much faster and with greater precision. Previously, the process of extracting and filtering data by ASIN required you to download files and manually sift through offline data. The new feature eliminates these inefficiencies, providing a streamlined way to manage ASIN analysis right from Seller Central.

Why This Feature Matters

For any Amazon seller, having easy access to key performance metrics for individual ASINs is critical. Whether you’re analyzing sales trends, tracking return rates, or monitoring customer reviews, being able to search business reports by ASIN can help you make more data-driven decisions. The ability to search for up to 100 ASINs at a time enables quick comparisons and trend analyses without having to leave the Seller Central platform.

Step-by-Step Guide to Searching Business Reports by ASIN

Here’s a step-by-step guide on how to utilize this new feature:

  1. Log in to your Amazon Seller Central account.
  2. Navigate to your Sales Dashboard.
  3. Select Reports from the top menu and then click on Business Reports.
  4. On the left navigation pane, you’ll see various report types. Select one of the By ASIN reports, such as “By ASIN Sales and Traffic” or “By ASIN Returns.”
  5. At the top of the page, locate the ASIN Search toolbar.
  6. Enter up to 100 ASINs into the search bar and hit “Search” to quickly retrieve performance metrics for the ASINs you’re interested in.

This simple process allows you to access a focused view of the performance data for the ASINs you wish to analyze, without the need for cumbersome downloads or external tools.

How This Feature Benefits Amazon Sellers

Here are some of the key benefits of using the new ASIN search functionality in Seller Central:

  • Time-saving: Instantly access up-to-date performance metrics for up to 100 ASINs in a single search.
  • Data accuracy: Since all filtering happens directly within Seller Central, there's less risk of data being mismanaged or lost during external downloads.
  • Increased productivity: Sellers can now make quicker, more informed decisions based on accurate, real-time data.
  • Trend analysis: Track ASIN performance over time to spot trends and areas for improvement, ensuring your business stays competitive in the marketplace.

Tips for Maximizing the Use of ASIN Search in Business Reports

To get the most out of the new ASIN search feature, consider these tips:

  • Use specific ASINs: Focus on your best-selling or underperforming ASINs to gain insights that help fine-tune your inventory and marketing strategies.
  • Compare ASIN groups: For sellers managing multiple products in the same category, comparing similar ASINs can help identify product-specific trends.
  • Monitor frequently: Regularly checking ASIN metrics ensures you can react quickly to market changes or issues like rising return rates or declining sales.

Conclusion

The ability to filter and search business reports by ASIN within Amazon Seller Central is a game changer for Amazon sellers looking to optimize their performance. With quick access to key metrics, sellers can stay on top of their business, make more informed decisions, and adjust their strategies as needed. If you have any questions about this new feature or need assistance navigating Seller Central, contact AMZ Sellers Attorney today.

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Amazon Section 3 Violations: Causes, Deactivation, and How to Appeal | AMZ Sellers Attorney

10/25/2024

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Amazon Section 3 Violations: Causes, Deactivation, and How to Appeal | Amazon Robots

Amazon Section 3 Violations: Comprehensive Guide to Causes, Appeals, and Compliance

By AMZ Sellers Attorney®

Amazon's Section 3 of the Business Solutions Agreement (BSA) is a cornerstone of its seller policy framework. Designed to uphold marketplace integrity, these rules govern seller behavior, intellectual property rights, and performance standards. Violations of Section 3 can result in account suspension, deactivation, or even permanent account termination. This guide delves into what constitutes an Amazon Section 3 violation, common causes, steps to resolve issues, and strategies to prevent future breaches.

What Is an Amazon Section 3 Violation?

A Section 3 violation occurs when sellers fail to comply with Amazon’s terms of service. This section outlines seller obligations, including accurate product listings, adherence to performance metrics, and respect for intellectual property policies. Violations can trigger enforcement actions ranging from temporary account suspensions to permanent closures.

Common Reasons for Section 3 Violations

Understanding the causes of Section 3 deactivations is crucial for compliance. Common reasons include:

  • Policy Violations: Breaching Amazon’s guidelines for seller behavior, including deceptive practices or selling prohibited items.
  • Intellectual Property Infringement: Unauthorized use of trademarks, copyrights, or patents.
  • Counterfeit Goods: Listing products that are counterfeit or otherwise inauthentic.
  • Performance Metric Failures: Falling below Amazon’s performance standards, such as high defect rates or late shipments.
  • Related Accounts: Operating more than one seller account without a legitimate business purpose.

How to Appeal Amazon Section 3 Violations

To appeal a Section 3 deactivation, sellers must submit a Plan of Action (POA). This document addresses the root cause of the violation and outlines steps taken to rectify the issue. Here’s a step-by-step guide:

  1. Analyze the Suspension Notice: Review the notice to identify specific violations.
  2. Draft a Detailed POA: Include root causes, corrective actions, and preventative measures.
  3. Provide Supporting Evidence: Attach documentation such as invoices or compliance certifications.
  4. Submit Your Appeal: Use Seller Central’s appeal system to upload your POA and evidence.
  5. Monitor and Respond: Follow up on your submission and provide additional information if requested.

For professional assistance, consider engaging AMZ Sellers Attorney®.

How AMZ Sellers Attorney® Can Help

At AMZ Sellers Attorney®, we specialize in Amazon Section 3 appeals. Our services include:

  • Custom POA Drafting: Expertly crafted documents tailored to address Amazon’s concerns.
  • Legal Guidance: Advice on policy compliance, intellectual property disputes, and related issues.
  • Post-Reinstatement Support: Ongoing assistance to ensure future compliance.
Request a Free Consultation

Conclusion

A Section 3 violation is serious, but it’s not insurmountable. By understanding Amazon’s policies and seeking expert assistance, sellers can recover their accounts and safeguard their businesses. AMZ Sellers Attorney® is here to help every step of the way. Contact us today for expert guidance.

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Amazon Updates to Support US FBA Peak Inventory Shipments

10/24/2024

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Amazon Updates to Support US FBA Peak Inventory Shipments

Updates to Support US FBA Peak Inventory Shipments

By AMZ Sellers Attorney®

As we approach the 2024 peak season, Amazon has announced several updates aimed at improving the handling of **Fulfillment by Amazon (FBA)** shipments during this high-demand period. Due to a surge in demand, especially at West Coast inbound locations and for palletized freight, many sellers have been experiencing **longer receive times** for their inventory. To alleviate this, Amazon is actively rerouting shipments to other regions to increase processing capacity and ensure that inventory is stocked before critical sales periods.

Extended Inbound Requirements for Peak Season

In response to the challenges faced by sellers, Amazon has made several changes to its inbound shipment requirements, effective immediately:

  • **Extended automatic closure window to 90 days** for shipments created between **August 7 and October 31, 2024**. Sellers are advised to cancel any shipments that they do not plan to send during this time, as these will count towards their capacity limits.
  • **Extended abandoned shipments window** from **30 days to 45 days** from the first receipt of goods for shipments created between **August 7 and October 31, 2024**.

These changes are designed to give sellers more flexibility during the high-volume period, minimizing disruptions caused by delayed shipments or issues with capacity limits.

Tracking Shipments During Peak Season

To help sellers monitor their inventory’s progress during these critical months, Amazon encourages sellers to regularly check their **Shipping Queue**. This tool allows you to track the status of your shipments and make necessary adjustments as needed. Ensuring that your shipments are progressing through the system efficiently will help you avoid delays that could impact your sales.

For further detailed tracking, you can go to the **FBA Peak Readiness Playbook** for more guidance on how to ensure your inventory is fully prepped for peak season sales.

How These Changes Help Sellers

The adjustments to FBA inbound requirements and shipment handling are aimed at improving the overall efficiency of inventory management during the busiest period of the year. By extending closure and abandonment windows, Amazon is giving sellers more time to navigate any logistical challenges they may encounter during peak season. Sellers can now manage their capacity limits more effectively, avoid unexpected cancellations, and ensure their inventory is ready for peak-season promotions like **Black Friday** and **Cyber Monday**.

Amazon’s Commitment to Peak Season Readiness

Amazon acknowledges the critical importance of ensuring that your inventory is ready for peak sales events. The rerouting of shipments to underutilized regions and adjustments to inbound processes reflect Amazon’s ongoing efforts to reduce delays and increase throughput at fulfillment centers. As a seller, staying updated with these changes and following the recommendations will be key to avoiding potential bottlenecks in your supply chain.

Need Help? Contact AMZ Sellers Attorney®

If you are facing difficulties due to these shipment delays or need assistance navigating Amazon’s inbound requirements, **AMZ Sellers Attorney®** is here to help. Our experienced team can guide you through the complexities of inventory management during peak season and ensure your shipments comply with Amazon’s evolving rules.

Contact Us for Support

© 2024 AMZ Sellers Attorney®. All Rights Reserved.

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Avoid Amazon Account Suspension Key Mistakes to Watch Out For

10/23/2024

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New Seller Central Layout and Features: Enhanced Tools for Amazon Sellers

10/22/2024

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New Seller Central Layout and Features: Enhanced Tools for Amazon Sellers; amazon robots

New Seller Central Layout and Features: Streamlining Access to Key Seller Metrics

By AMZ Sellers Attorney®

Amazon has recently started rolling out a new layout for its **Seller Central dashboard**, aiming to streamline access to essential seller metrics. This updated dashboard includes several enhanced features that provide Amazon sellers with more detailed insights into their business performance, allowing them to manage their operations more efficiently. In this article, we will break down the new layout and explore the tools that can help sellers better navigate the competitive e-commerce landscape.

What’s New in the Seller Central Dashboard?

The new **Seller Central dashboard** is designed with improved usability in mind. Amazon has enhanced the layout to allow sellers to view key metrics more clearly and manage their businesses with greater ease. Here are the main updates:

  • **Enhanced Inventory Management**: Sellers now have access to more detailed inventory reports. This allows for better tracking of stock levels, including alerts for low inventory and recommendations for restocking, minimizing out-of-stock scenarios.
  • **Sales Tracking and Performance Insights**: The new dashboard offers more granular insights into sales performance, breaking down data by units sold, revenue generated, and order volumes over custom date ranges. This allows sellers to identify trends and optimize their sales strategies.
  • **Restock Recommendations**: To help maintain optimal inventory levels, Amazon has included restocking suggestions based on historical sales data and projected demand. This feature minimizes the risk of lost sales due to stock shortages.
  • **FBA Dashboard Integration**: The updated dashboard consolidates information for sellers using Fulfillment by Amazon (FBA), providing a centralized view of inventory health, shipments, and capacity limits. Sellers can also track their Inventory Performance Index (IPI) to avoid excess storage fees.

How These Features Help Sellers

The changes to the Seller Central dashboard are designed to improve the overall efficiency of managing an Amazon store. With these new tools, sellers can enjoy:

  • **Better Decision-Making**: With enhanced access to real-time sales and inventory data, sellers can make more informed decisions regarding restocking, pricing adjustments, and marketing strategies.
  • **Time Savings**: The streamlined dashboard reduces the time needed to gather important performance data, allowing sellers to focus on other aspects of their business, such as product development or customer service.
  • **Improved Profitability**: By closely monitoring inventory levels and following Amazon’s restocking recommendations, sellers can avoid overstocking and understocking, both of which can negatively impact profitability.

What Sellers Should Do Next

While the new **Seller Central layout** is still in its testing phase, many sellers are already reporting improved ease of use and more actionable insights. Here’s what you should do to prepare:

  • **Familiarize Yourself with the New Layout**: Log into Seller Central to explore the new dashboard and get comfortable with its features.
  • **Leverage the New Insights**: Use the enhanced data to adjust your inventory levels, sales strategies, and pricing to improve your store's performance.
  • **Provide Feedback**: Since the layout is still being rolled out, Amazon is likely collecting user feedback. Don’t hesitate to provide input on how the changes are affecting your workflow, as this may influence further improvements.

How AMZ Sellers Attorney® Can Help

At **AMZ Sellers Attorney®**, we understand that managing an Amazon business comes with challenges, especially when adapting to platform changes. If you need assistance navigating these updates or have concerns about your seller account's compliance and performance, we are here to help. Our experienced team can guide you through the process and ensure your business remains competitive.

Contact Us for Expert Assistance

© 2024 AMZ Sellers Attorney®. All Rights Reserved.

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Recovering from Amazon Account Hacking: How to Restore Access and Secure Your Business

10/21/2024

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Recovering from Amazon Account Hacking: How to Restore Access and Secure Your Business

Recovering from Amazon Account Hacking: How to Restore Access and Secure Your Business

By AMZ Sellers Attorney®

Amazon seller accounts are increasingly targeted by hackers, resulting in unauthorized transactions, hijacked listings, and lost revenue. Recovering a hacked Amazon account and securing your business requires swift and comprehensive action. This guide walks you through the latest methods to restore access and protect your business.

For further guidance, visit our detailed page: Recover Your Amazon Account After a Hack.

Step 1: Recognize and Report the Hack

Recognizing the signs of a hacked account is the first step. Common indicators include unauthorized changes to listings, unrecognized orders, or altered account details. If you suspect your account has been hacked, act immediately:

  • Check for any email alerts from Amazon indicating suspicious login activity.
  • Try to log in and verify any account changes.
  • Report the issue to Amazon Seller Support and start the account recovery process.

Step 2: Restore Account Access

If hackers have changed your login credentials, you’ll need to follow Amazon's account recovery process:

  • Go to the Amazon login page and select "Forgot Password" to begin the recovery process.
  • Verify your identity by entering the one-time password (OTP) sent to your email or phone.
  • Set a new, strong password. Consider using a password manager to avoid reusing passwords across accounts.

If two-factor authentication (2FA) was compromised, you’ll need to contact Amazon directly for further verification steps, such as submitting identification documents​:contentReference[oaicite:0]{index=0}.

Step 3: Secure Your Account

Once access is restored, securing your account is crucial to prevent future incidents. Implement these measures:

  • **Enable Two-Factor Authentication (2FA)**: This adds an extra layer of protection by requiring a one-time code sent to your phone upon login​:contentReference[oaicite:1]{index=1}.
  • **Update Passwords Regularly**: Create a strong, unique password for your Amazon account, and update it every few months.
  • **Monitor Devices and Access Logs**: Regularly check your account settings for unfamiliar devices or logins. Amazon allows you to view recent login attempts and location information​:contentReference[oaicite:2]{index=2}.

Step 4: Review Financials and Listings

After restoring access, thoroughly check your account for any unauthorized activity. Hackers may have placed fraudulent orders or altered payment settings. Here's what to do:

  • Review your recent orders and payment methods for any suspicious transactions.
  • Check product listings for unauthorized changes or price manipulations.
  • Revoke access for any unfamiliar third-party apps that may have been connected to your account​:contentReference[oaicite:3]{index=3}.

Step 5: Work with Amazon to Restore Trust

Amazon’s security team may require additional documentation during the recovery process. It’s crucial to cooperate and respond promptly to ensure your account is fully restored. If your account was suspended due to the hacking incident, you may need to submit a Plan of Action (POA) detailing how you’ll prevent future security issues.

How AMZ Sellers Attorney® Can Help

At **AMZ Sellers Attorney®**, we specialize in helping sellers recover their hacked accounts and secure their businesses. If you’ve experienced a hacking incident, we can assist you with the recovery process, from handling Amazon appeals to implementing stronger security protocols.

Contact Us for Help with Account Recovery

© 2024 AMZ Sellers Attorney®. All Rights Reserved.

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Augmented Reality (AR) and Virtual Reality (VR) Shopping: Transforming E-Commerce

10/20/2024

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Augmented Reality (AR) and Virtual Reality (VR) Shopping: Transforming E-Commerce

Augmented Reality (AR) and Virtual Reality (VR) Shopping: Transforming E-commerce

By AMZ Sellers Attorney®

In today’s fast-evolving digital landscape, **Augmented Reality (AR)** and **Virtual Reality (VR)** are reshaping the way e-commerce businesses interact with customers. These immersive technologies allow shoppers to visualize products in their real-world environments, providing an enhanced shopping experience. From clothing to home goods and makeup, AR and VR help users "try" before they buy, reducing the uncertainty that often accompanies online purchases.

How AR and VR Are Revolutionizing E-Commerce

AR and VR are no longer futuristic novelties—they have become essential tools in modern e-commerce. Brands such as **Sephora**, **IKEA**, and **Warby Parker** are already utilizing these technologies to give customers more interactive, engaging experiences. In 2024, more than **90% of American shoppers** reported using or being open to using AR during their online shopping journeys. This transformation in consumer behavior has led to higher conversion rates, reduced return rates, and increased customer confidence in purchases.

With the growing adoption of these technologies, companies can now offer features such as:

  • **Virtual Try-On Experiences**: Fashion retailers and beauty brands use AR filters to allow customers to try on clothing, shoes, accessories, and makeup virtually.
  • **Virtual Showrooms**: Furniture companies are enabling shoppers to place 3D models of products like couches or tables in their actual homes, seeing how they fit and look before committing to a purchase.
  • **Interactive Product Demos**: AR overlays or VR experiences allow users to engage with products dynamically, such as rotating or interacting with them to better understand their features.

Key Benefits of AR and VR in E-Commerce

AR and VR technologies offer significant benefits for both sellers and consumers:

  • **Enhanced Customer Confidence**: By allowing users to interact with products virtually, these technologies significantly reduce the uncertainty surrounding online purchases, leading to more confident buying decisions.
  • **Reduced Return Rates**: Since customers have a better idea of what they’re purchasing, AR and VR experiences reduce the likelihood of returns, saving businesses costs and improving customer satisfaction.
  • **Personalized Shopping Experiences**: AR and VR tailor the shopping experience to the individual, offering product recommendations based on user preferences and previous behaviors.
  • **Increased Conversion Rates**: With features like virtual try-ons and product visualization, customers are more likely to convert and complete purchases. According to Shopify, products advertised with AR content saw a **94% higher conversion rate** than those without.

Latest AR and VR E-Commerce Trends for 2024

As we move into 2024, several trends are shaping the future of AR and VR in e-commerce:

  • **AR for Personalized Marketing**: Digital marketing strategies are increasingly leveraging AR tools. Brands are using AR-powered ads on platforms like Facebook, allowing users to visualize products within their environments directly from their social feeds.
  • **In-Store Navigation with AR**: Retailers are incorporating AR-based apps for in-store navigation, guiding customers to product locations and even highlighting discounts or special offers.
  • **VR Shopping Malls**: Virtual reality is taking the idea of digital stores to the next level. Shoppers can now explore VR malls, interact with products, and even share the experience with friends.
  • **Interactive User Manuals**: AR is simplifying the setup of complex products by offering interactive user manuals, helping customers understand features and assembly processes easily.

The Future of AR and VR in E-Commerce

Looking ahead, AR and VR will continue to transform online shopping. As the technologies become more affordable and accessible, businesses that adopt these immersive tools will stay ahead of the competition. With increased personalization, seamless integration with e-commerce platforms, and ever-improving user experiences, AR and VR are set to become integral to the future of online retail.

For e-commerce businesses, investing in these technologies is not just about enhancing the customer experience—it’s about ensuring long-term success in an increasingly competitive digital marketplace.

© 2024 AMZ Sellers Attorney®. All Rights Reserved.

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Amazon Suspension Appeal Success Stories | AMZ Sellers Attorney®

10/20/2024

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Amazon Suspension Appeal Success Stories | AMZ Sellers Attorney®

How We Helped Sellers Win Suspension Appeals

By AMZ Sellers Attorney®

Amazon suspensions can halt your business, but with the right legal help, reinstatement is possible. At AMZ Sellers Attorney®, we’ve helped countless sellers get back to business. Here’s a look at how our expert appeals process works, backed by real success stories.

Case Study 1: Overturning an Inauthentic Suspension

A seller faced a suspension due to inauthentic claims, with products flagged as potentially counterfeit. This occurred despite the fact that all inventory was legitimate, purchased from authorized distributors.

Our Approach

We gathered documentation, including purchase orders and supplier agreements, to show Amazon that the products were authentic. Our appeal directly addressed Amazon's concerns with precise legal arguments and evidence.

Outcome

Within days, Amazon reinstated the account, clearing the seller’s name and returning withheld funds.

Case Study 2: Reactivating a Suspended Account Due to Review Manipulation

Another seller was suspended for allegedly engaging in review manipulation. This situation often arises from misunderstandings about review solicitation practices.

Our Approach

We worked closely with the client to provide evidence proving they followed Amazon’s review policies correctly. Our appeal outlined the seller’s commitment to compliance and detailed preventive steps moving forward.

Outcome

The suspension was lifted, and the account was reinstated, enabling the seller to continue operations seamlessly.

Case Study 3: Overcoming Related Account Suspension

A seller faced suspension after Amazon flagged their account for being linked to another suspended account. The client had no idea about this alleged connection.

Our Approach

We conducted an investigation into the issue, showing Amazon that the accounts were unrelated. Our appeal explained the mix-up in detail and provided supporting evidence that no policy violations had occurred.

Outcome

Amazon reinstated the account, and the seller resumed business as usual, with no further issues.

Case Study 4: Reinstating a Seller After IP Infringement Accusations

A client’s account was suspended after receiving false Intellectual Property (IP) infringement claims from a competitor. This type of suspension is common but can be resolved with the right approach.

Our Approach

We gathered documents proving the seller had legal rights to sell the product, and we challenged the false IP claim with a robust legal defense.

Outcome

The suspension was lifted, and the seller was able to get back to business without further interruptions.

Case Study 5: Resolving an Account Hacked Suspension

One seller’s account was hacked, leading to unauthorized changes that resulted in suspension. Despite reporting the breach, the seller’s appeals had been ignored until they approached us.

Our Approach

We worked with the seller to show Amazon that their account had been compromised. Our appeal included security reports and a comprehensive recovery plan to prevent future incidents.

Outcome

The account was reinstated within 24 hours, and the seller received all withheld funds.

Case Study 6: Overcoming a Sales Velocity Limit Suspension

A seller experienced a sales spike that triggered Amazon’s velocity limits, leading to an account suspension. Although their business was growing quickly, Amazon's system flagged the activity as unusual.

Our Approach

We built a case using sales data and market expansion information to explain the growth. The appeal outlined measures to manage sales velocity and stay compliant with Amazon’s policies.

Outcome

The suspension was lifted, and the seller continued growing their business without further issues.

Why Choose AMZ Sellers Attorney®?

  • Proven Success: Our track record speaks for itself—hundreds of reinstated accounts and satisfied clients.
  • Personalized Attention: No two cases are the same, and we approach every appeal with customized strategies for maximum effectiveness.
  • Fast Results: We understand how critical it is to get your account reinstated quickly, so we move fast without compromising on quality.

If your Amazon account is suspended, don’t risk your business by going it alone. Let AMZ Sellers Attorney® handle your appeal and get you back to selling.

Contact Us for a Free Consultation Now

© 2024 AMZ Sellers Attorney®. All Rights Reserved.

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Amazon BSA Section 2: Why It's Not an Enforceable Liquidated Damages Clause

10/20/2024

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Amazon BSA Section 2: Why It's Not an Enforceable Liquidated Damages Clause

Why Section 2 of Amazon's Business Solutions Agreement (BSA) is Not an Enforceable Liquidated Damages Clause

Amazon's Business Solutions Agreement (BSA) governs the relationship between Amazon and its sellers. However, there has been much debate about the validity of Section 2 of the BSA, which allows Amazon to withhold payments indefinitely in cases of seller misconduct. In this article, we explore why this section does not meet the legal requirements of a liquidated damages clause and how this affects sellers.

What is a Liquidated Damages Clause?

A liquidated damages clause refers to a contract provision that pre-determines the compensation one party must pay to the other if a breach occurs. In order to be legally enforceable, liquidated damages must meet two critical requirements:

  • The amount specified must be a reasonable pre estimate made at time of contract formation of the actual damages that would occur due to a breach.
  • The damages must be difficult or impossible to quantify.

Failing to meet these requirements often results in the clause being deemed an unenforceable penalty.

Why Section 2 of Amazon's BSA Fails to Qualify as Liquidated Damages

Section 2 of the BSA grants Amazon the authority to permanently withhold seller funds in the event of fraudulent or deceptive activity or repeated violations of Amazon's policies, which are incorporated into the BSA. However, several reasons exist why this section fails to serve as an enforceable liquidated damages clause:

1. No Predetermined Amount for Damages

Unlike a standard liquidated damages clause, Section 2 of the BSA does not set a fixed amount of damages. Instead, Amazon reserves the right to withhold varying sums, often equating to the total balance in a seller's account at the time of deactivation. This lack of a specific, pre-agreed amount undermines the validity of the provision as liquidated damages.

2. No Reasonable Estimate of Damages

A liquidated damages clause should represent a reasonable estimate of the damages Amazon would suffer in case of a breach of the BSA. However, the Amazon is allowed to withhold any amount under Section 2, which amount can vary dramatically based on seller sales volume, rather than the severity of the breach. For instance, a small infraction might result in the withholding of a large balance if sales were high during that period.

3. Lack of Mutual Agreement

A valid liquidated damages clause arises from mutual agreement between both parties. In the case of Amazon’s BSA, there is no language in the clause to indicate it was intended to serve as a liquidated damages clause.

Legal Precedents and Court Rulings

Courts have generally held that liquidated damages must be a reasonable pre-estimation of losses. In various legal cases, courts have struck down similar provisions when they were deemed to serve more as punitive measures rather than as compensatory ones. Since Section 2 lacks the core components of a liquidated damages clause, it is more likely to be viewed as an unenforceable penalty under current legal standards.

Implications for Amazon Sellers

For sellers, the ability of Amazon to withhold substantial funds indefinitely without establishing a clear link to damages presents significant financial risks. Sellers facing account deactivation or withheld funds may have the legal basis to challenge these actions, particularly if they can argue that Amazon’s withholding is disproportionate to any harm caused.

Conclusion

While Amazon’s Section 2 of the BSA grants the platform substantial power, it does not constitute an enforceable liquidated damages clause under legal scrutiny. Sellers should be aware of their rights when dealing with withheld funds and consider legal counsel to challenge excessive penalties imposed under this section. AMZ Sellers Attorney® specializes in helping sellers navigate these complex legal issues.

© 2024 AMZ Sellers Attorney®. All rights reserved.

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Amazon Holding Seller Funds: Understanding Deferred Transactions and Reserves

10/19/2024

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Amazon Holding Seller Funds: Understanding Deferred Transactions and Reserves; amazon robots

Amazon Holding Seller Funds in Reserve: What You Need to Know

As part of Amazon's Payments based on delivery date policy, the platform reserves seller proceeds for up to seven days after an order is delivered. This policy ensures there are sufficient funds to cover potential refunds, claims, or chargebacks. On October 18, 2024, Amazon introduced changes to this process, improving visibility for sellers regarding their held funds.

Deferred Transactions: A New Visibility Feature

By November 1, 2024, Amazon will update its Payments dashboard to provide sellers with a clearer view of their reserved payments. These funds will now be categorized as Deferred Transactions and displayed in the Total balance box. Sellers will be able to click on the balance to view more details, such as the deferral reasons and the estimated payment release date.

Until the Deferred Transactions feature is fully implemented, sellers may still see these amounts under the existing account-level reserves on the dashboard.

Why Are Seller Funds Reserved?

Amazon reserves seller funds to mitigate risks such as:

  • Refunds or return requests
  • Chargebacks initiated by buyers
  • Other claims related to the order

This ensures that even after an order is delivered, Amazon holds the sales proceeds for an additional seven days. Additionally, if a seller's account is under review, the funds may remain in reserve.

How to View and Download Deferred Transactions

To manage and track reserved payments, sellers can take advantage of new reporting options:

  1. Go to the Payments reports repository.
  2. Select the Deferred transaction report type.
  3. Click Request report to download a list of orders and their expected release dates.

Once a deferred transaction is released, it will no longer appear in the Deferred Transactions report and will move to the regular Transaction report.

Older Transactions and Account-Level Reserves

Only new transactions posted after the update will be categorized as deferred. Older transactions will remain under account-level reserves until they are released for payment. Account-level reserves still apply if there are claims, chargebacks, or if the account is under review.

Implications for Sellers

The new Deferred Transactions feature offers greater transparency into held funds, but also highlights the importance of maintaining a good account standing and minimizing disputes. Sellers should monitor their Payments dashboard and deferred transactions reports regularly to manage cash flow and ensure payments are released on time.

Sellers can expect deferred transactions to be excluded from dashboard charts until they are released, adding another layer of complexity for tracking available funds.

Conclusion

Amazon's recent update to its Deferred Transactions feature aims to improve the seller experience by offering more visibility into reserved funds. For eCommerce businesses, particularly high-volume sellers, managing cash flow is critical. By utilizing the new tools provided, sellers can better manage their reserves, monitor transaction statuses, and ensure smoother operations.

For further assistance with navigating disputes or account reviews, AMZ Sellers Attorney® offers expert legal guidance to help sellers protect their business and minimize risks.

© 2024 AMZ Sellers Attorney®. All rights reserved.

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Buy Now, Pay Later (BNPL) Growth: Boosting E-Commerce in 2024

10/18/2024

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Buy Now, Pay Later (BNPL) Growth: Boosting E-Commerce in 2024

Buy Now, Pay Later (BNPL) Growth: A Boon for E-Commerce Sellers in 2024

In 2024, Buy Now, Pay Later (BNPL) services are projected to hit $18.5 billion in U.S. spending, reflecting an 11.4% year-over-year growth. This trend has been largely driven by consumer demand for more flexible payment options, especially as shoppers navigate inflation and increased living costs. For e-commerce sellers, embracing BNPL can attract customers looking for financial ease and may be essential for staying competitive in today’s market.

What is BNPL?

BNPL services, such as Affirm, Klarna, and Afterpay, allow consumers to purchase items immediately and pay for them over time, usually in interest-free installments. Unlike traditional credit options, BNPL is integrated directly at checkout and offers a simplified way for consumers to manage their finances. This payment method is popular for smaller, discretionary purchases, but is also increasingly used for everyday essentials like groceries.

Why BNPL is Crucial for E-Commerce Sellers

With U.S. consumers projected to spend record amounts using BNPL, adopting these services can significantly boost sales, particularly during peak shopping seasons like Cyber Monday, when BNPL spending is expected to reach nearly $993 million in one day. Many customers turn to BNPL for budget flexibility, which can encourage higher conversion rates and larger average order values.

Additionally, mobile shopping has emerged as the predominant way consumers use BNPL, with 74% to 79% of BNPL transactions happening on mobile devices. For e-commerce sellers, ensuring that mobile checkouts are optimized for BNPL could be a critical factor in capturing this growing market.

Benefits and Challenges of BNPL for Sellers

Benefits:

  • Increased Sales: BNPL allows customers to purchase items they may not afford upfront, boosting your conversion rates and average order value.
  • Wider Audience: Offering BNPL can attract younger consumers, particularly Gen Z and Millennials, who are increasingly favoring this payment method.
  • Improved Cash Flow: BNPL providers typically pay merchants the full amount upfront, minus fees, while handling the installment payments with the consumer.

Challenges:

  • Fees: While you get paid upfront, BNPL services often charge transaction fees higher than traditional credit card processing fees.
  • Risk of Returns: High return rates can lead to logistical challenges and may result in more complex refund processes involving both the seller and the BNPL provider.

How Sellers Can Adapt

To capitalize on this trend, e-commerce sellers should consider the following strategies:

  • Integrate BNPL at Checkout: Ensure that popular BNPL services are available at checkout, especially on mobile platforms.
  • Promote BNPL Options: Highlight BNPL availability prominently on product pages and during checkout to inform consumers of this flexible option.
  • Prepare for Increased Demand: As BNPL grows, sellers should manage their inventory and fulfillment strategies carefully, especially during the holiday season.

By adapting to these shifts, e-commerce sellers can not only meet consumer demand but also gain a competitive edge as BNPL continues to reshape the landscape of online shopping.

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Amazon’s New FBA Shipment Notifications for Enhanced Visibility

10/18/2024

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Amazon’s New FBA Shipment Notifications: Enhanced Shipment Visibility for Sellers

In a continued effort to support sellers, Amazon has introduced a new notification system for Fulfillment by Amazon (FBA) shipments, helping sellers stay informed about partnered carrier pickups and shipment disruptions. This update aims to give Amazon sellers more control over their inventory management and logistics, ensuring that shipments run smoothly, even in cases of unforeseen delays.

What Are the New FBA Shipment Notifications?

The new FBA shipment notifications are designed to provide sellers with real-time updates about their shipments using full truckload (FTL), less than truckload (LTL), and intermodal shipping modes. These notifications alert sellers to changes in pickup times, shipping modes, or carrier details, allowing them to better prepare for any disruptions and take appropriate actions.

For shipments made through Amazon's Partnered Carrier Program, sellers will be notified of any changes to the pickup date, time, or shipping details, including updates to the Standard Carrier Alpha Code (SCAC). This ensures that sellers have visibility into when their inventory will be picked up and delivered, helping to avoid any last-minute surprises.

How Do These Notifications Help Sellers?

Maintaining visibility over FBA shipments is crucial for sellers, especially when working with partnered carriers. These notifications serve several key functions:

  • Advanced Notice: Sellers will be informed of any changes to pickup plans, giving them time to prepare inventory and adjust operations as needed.
  • Reduced Delays: By receiving real-time updates about disruptions, sellers can proactively address shipping issues, reducing potential delays in getting products to fulfillment centers.
  • Improved Communication: Sellers are provided with shipment details such as shipment ID, total pallets, cartons, and weight to better manage their inventory flow.

Managing Your FBA Shipment Notifications

Amazon has made it simple for sellers to manage their notification preferences through Seller Central. To ensure you’re receiving the right updates about FBA delivery disruptions or shipment changes, follow these steps:

  1. Log in to your Seller Central account.
  2. Navigate to Settings and click on Notification Preferences.
  3. Scroll down to the FBA Inbound Shipment Status Notifications section.
  4. Click Edit to update your email preferences for delivery plan changes or disruptions.

It’s important to make sure the email address used in Step 4 of the Send to Amazon workflow is up-to-date, as this is where Amazon will send these important notifications.

What Does This Mean for Partnered Carrier Program Shipments?

For shipments that use Amazon’s Partnered Carrier Program, these new notifications will help sellers better track changes to pickup dates and times, carrier details, and shipping mode adjustments. By receiving these updates directly via email, sellers can take timely actions to prepare their inventory for pickup and avoid any delays in getting their products to the fulfillment centers.

Key Shipment Details Provided

Each notification email includes the following details:

  • Shipment ID: The unique identifier for your shipment.
  • Total Pallets and Cartons: Information about the total number of pallets and cartons being shipped.
  • Total Weight: The overall weight of the shipment.
  • Pickup and Delivery Dates: Details about the updated pickup date and any changes to the delivery time or location.

Why Sellers Should Care About This Update

This update is an essential step toward giving Amazon sellers more control and insight into their inventory management process. As many sellers rely heavily on Amazon FBA to handle their fulfillment and shipping needs, staying on top of any changes in shipment status can make the difference between a smooth operation and one plagued by delays.

For high-volume sellers and those who depend on consistent delivery schedules, these notifications provide an extra layer of visibility that can improve operational efficiency and customer satisfaction.

Conclusion: Better Shipment Tracking for Amazon Sellers

Amazon’s new FBA shipment notifications bring greater visibility to the shipment process, allowing sellers to stay informed of any changes or disruptions in real-time. For Amazon sellers, especially those working with the Partnered Carrier Program, these notifications provide a critical tool for maintaining control over their shipping logistics.

To learn more about how these updates may impact your business or for assistance with FBA and other Amazon compliance issues, contact AMZ Sellers Attorney® for expert legal guidance on managing your Amazon seller account.

Amazon’s New FBA Shipment Notifications for Enhanced Visibility
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Amazon’s New Seller Feedback Rating Experiment

10/18/2024

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Amazon’s New Seller Feedback Rating Experiment

Amazon’s New Seller Feedback Rating Experiment: What Sellers Need to Know

Amazon is constantly evolving its platform to enhance the shopping experience for customers. In its latest move, the company is quietly testing a new feature that adds seller feedback ratings directly to search results on its marketplace. This development, which was recently noticed by Amazon sellers and agencies, could have significant implications for both sellers and buyers.

What Is the New Seller Feedback Rating Feature?

In recent weeks, Amazon has been experimenting with displaying seller feedback ratings alongside product listings in search results. Traditionally, Amazon search results have shown essential product information, such as price, shipping times, and product ratings. However, some users have noticed an additional line of information that displays the seller's feedback score.

For example, in a recent LinkedIn post, an Amazon consultant shared a screenshot of search results for "shampoo" on the mobile app. The results now included a numerical rating from zero to five (with five being the best), showing the seller's average rating, and the total number of ratings received in the past 12 months. This new feature appears directly under the Prime badge, making it highly visible to shoppers.

How Could This Affect Amazon Sellers?

This new feature has the potential to impact how shoppers make purchasing decisions. Historically, buyers have primarily relied on product ratings and reviews, but now seller ratings could influence those decisions as well. Here are some potential effects:

1. Increased Importance of Seller Ratings

Sellers who have excellent feedback scores may benefit from increased visibility and credibility. Conversely, sellers with lower ratings could face challenges as buyers might hesitate to purchase from them, even if their products have high ratings. This means maintaining a high seller rating is more critical than ever.

2. More Transparency for Buyers

By adding seller ratings to search results, Amazon is providing buyers with more information upfront. This transparency could lead to more informed purchasing decisions, but it could also result in increased scrutiny of seller performance. Sellers with consistently positive ratings will likely benefit, while those with negative feedback may need to improve customer service to remain competitive.

3. Impact on Brand Perception

For brand-registered sellers and third-party sellers alike, this feature could either boost or harm brand perception on Amazon. A low seller rating could tarnish the reputation of the brand, even if the product itself is well-reviewed. Therefore, managing feedback, handling disputes quickly, and ensuring excellent customer service will be key to maintaining a strong brand presence.

Amazon’s Existing Seller Performance Metrics

This new experiment builds on Amazon’s existing seller performance metrics, which already consider feedback ratings, Order Defect Rate (ODR), and customer complaints. However, displaying this information more prominently in search results highlights how seriously Amazon takes seller performance.

Amazon’s Seller Performance team evaluates seller accounts based on these metrics, and consistent poor performance could lead to account suspension or deactivation. As Amazon increases transparency for buyers, sellers will need to focus on providing quality service, fast shipping, and maintaining low defect rates to avoid penalties.

Challenges for Sellers with Gated Brands or New Sellers

It’s important to note that seller ratings can be especially challenging for new sellers or those selling gated brands on Amazon. If a seller is new and has fewer ratings or if their products are within gated categories that require additional permissions, it might be difficult to build a solid reputation quickly. Furthermore, Amazon may have stricter requirements for sellers in certain categories, which can make it harder to maintain positive ratings.

What Sellers Should Do

With the possibility of seller ratings becoming a permanent feature, here are some actions Amazon sellers can take to protect and enhance their reputation:

  • Monitor Feedback Regularly: Keep a close eye on customer feedback and address negative reviews promptly. Timely resolution of issues can improve your overall rating.
  • Deliver Excellent Customer Service: Ensure quick response times to buyer inquiries, fast shipping, and top-notch post-sale support.
  • Optimize Listings: Ensure that your product listings are accurate and up to date to minimize returns and complaints.
  • Request Feedback from Satisfied Customers: Encourage happy customers to leave positive feedback, as this can help offset occasional negative reviews.

Conclusion: The Impact of AI on Amazon’s Seller Feedback Experiment

While this experiment is still in its early stages, it demonstrates Amazon’s increasing focus on transparency and its continued reliance on technology to improve the marketplace. Amazon has already begun using artificial intelligence (AI) to manage seller performance metrics, and incorporating seller feedback into search results may be another step in that direction.

However, with AI comes the risk of errors in decision-making, as AI systems may not always account for the complexities of individual seller situations. This could lead to more disputes, suspensions, or unjust account deactivations. Sellers should be prepared to navigate these challenges and, when necessary, consult experts like AMZ Sellers Attorney® to help resolve disputes and reinstate accounts that are unfairly penalized.

As Amazon continues to evolve, staying informed and proactive will be key to long-term success on the platform.

For more information or assistance with Amazon account issues, contact AMZ Sellers Attorney®.

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Understanding the First Sale Doctrine for Amazon Sellers

10/17/2024

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Understanding the First Sale Doctrine for Amazon Sellers

Understanding the First Sale Doctrine for Amazon Sellers

For Amazon sellers, understanding the First Sale Doctrine is crucial for maintaining compliance with intellectual property (IP) laws while also protecting your business. The First Sale Doctrine is a legal principle that can offer sellers some flexibility, but when it comes to the specifics of Amazon's policies—especially regarding retail-sourced products—things get more complicated.

What is the First Sale Doctrine?

The First Sale Doctrine, originating from U.S. copyright law, essentially allows the purchaser of a legally acquired item to resell, rent, or lend that item without needing the permission of the rights owner. In terms of copyright law, once a copyright holder sells a product, they lose the right to control the resale of that product. This doctrine also applies to trademarked goods and patented products in certain contexts.

The doctrine protects resellers and individuals alike from being sued by the original rights holders for reselling goods they legally purchased. For Amazon sellers, this doctrine is often referenced when reselling products from third-party suppliers, such as retail arbitrage.

How Does the First Sale Doctrine Apply to Amazon Sellers?

Many Amazon sellers rely on the first sale doctrine copyright protection when sourcing products from third-party retailers or wholesalers. Under the 1st sale doctrine, as long as the goods are purchased legally, sellers can typically resell them without infringing on intellectual property rights. For example, if you buy products from a major retailer like Walmart, you can resell those items on Amazon.

However, while Amazon technically allows sellers to source products through retail arbitrage, sellers must be careful. The platform has strict guidelines on authenticity and product sourcing, and not all suppliers are considered equal. A significant challenge Amazon sellers face is navigating Amazon's invoice standards and restrictions, particularly for brands that are "gated."

Amazon and "Gated" Brands: The Challenge of Retail Arbitrage

Amazon requires sellers to provide documentation that proves the authenticity and legal sourcing of their products. This is where the right of first sale can become murky. Amazon may accept retail receipts for some brands, but for "gated" brands, sellers are required to provide detailed invoices from authorized suppliers or manufacturers.

Gated brands are those that Amazon restricts due to counterfeit risks, brand control, or exclusivity deals. Even if you legally purchased products from a legitimate retailer, if Amazon deems that retailer’s invoice or receipt insufficient, your listing could be removed or flagged, putting your account at risk. In these cases, Amazon will often not accept a retail receipt; only an invoice from a manufacturer or authorized distributor will suffice.

Amazon Invoice Standards and Supply Chain Documentation

Amazon's invoice standards are strict, especially when it comes to gated brands or high-risk categories. Sellers need to provide clear, detailed invoices that include information such as:

  • Supplier name and contact information
  • Date of purchase
  • Product details, including SKU, ASIN, or UPC
  • Quantity of items purchased
  • Proof of payment

If you rely on retail arbitrage, it’s essential to understand that Amazon may not necessarily view a retail receipt as valid documentation. To comply with Amazon’s standards, especially for gated brands, you must provide legitimate invoices from authorized suppliers. Failure to do so could lead to the suspension of your product listing or even your entire seller account.

Preventing IP Issues While Reselling on Amazon

To minimize the risk of IP infringement claims or account suspension due to insufficient documentation, it’s important to take several precautions when sourcing products for resale:

  • Source from trusted suppliers: Whenever possible, work directly with manufacturers or authorized distributors who can provide proper invoices that meet Amazon's standards.
  • Keep detailed records: Maintain organized and clear documentation for every purchase, including invoices, receipts, and proof of authenticity.
  • Check brand gating status: Before listing any new products, check whether the brand is gated on Amazon. If so, ensure that you have the necessary approvals and documentation before listing. Don't EVER use a gating service. Always obtain genuine invoices acceptable to Amazon.
  • Monitor your account health: Regularly review your Amazon Account Health page to catch any potential issues before they escalate.

Conclusion: Protect Your Amazon Seller Account

While the First Sale Doctrine offers some legal protection for reselling goods, Amazon’s strict requirements for authenticity and proper sourcing can complicate things, especially when dealing with gated brands. Sellers must be prepared to meet Amazon’s invoice standards and provide thorough supply chain documentation to avoid IP infringement claims or account suspension.

If you're facing challenges with IP claims, product gating, or sourcing issues, contact AMZ Sellers Attorney® for expert legal guidance. We specialize in helping Amazon sellers resolve account issues, navigate complex IP policies, and stay compliant with Amazon’s ever-evolving standards.

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