Amazon FBM Reinstatement – Case Study & Appeal Guide

Introduction: Why FBM Reinstatement Matters for Amazon Sellers

Amazon FBM reinstatement is critical for sellers who manage their own fulfillment process. Losing FBM (Fulfilled by Merchant) privileges can significantly impact a seller’s ability to operate efficiently, leading to financial losses, decreased sales, and long-term account restrictions.

Amazon enforces strict policies regarding drop shipping, and violations—whether intentional or accidental—can result in FBM deactivation. While Amazon permits drop shipping under certain conditions, sellers must always be the seller of record, remove third-party branding, and handle customer service themselves. Any failure to comply with these rules may lead to FBM suspension.

Winning Amazon FBM reinstatement requires a strong appeal strategy, including a well-documented Plan of Action (POA), clear supporting evidence, and an understanding of Amazon’s enforcement policies. This guide explores:

• Amazon’s drop shipping policy and why FBM suspensions occur
• A case study on a successful Amazon FBM reinstatement
• Step-by-step instructions on appealing FBM suspensions
• Best practices for preventing future FBM deactivations

By following these strategies, sellers can increase their chances of successfully restoring their FBM privileges and prevent future policy violations.

Understanding Amazon’s Drop Shipping Policy & FBM Restrictions

What Triggers FBM Suspension Due to Drop Shipping?

Amazon strictly regulates drop shipping and enforces its policies to prevent unauthorized fulfillment practices. Sellers must:

• Be the seller of record for all products they list
• Ensure shipments do not contain third-party branding
• Handle returns and customer service directly
• Maintain direct control over inventory and fulfillment operations

Common reasons Amazon revokes FBM privileges due to drop shipping concerns:

1. Using third-party suppliers for order fulfillment – Amazon does not allow sellers to have another retailer ship orders on their behalf.
2. Shipping products with non-Amazon branding – Orders arriving with Walmart, Target, or other retailer branding are considered violations.
3. Customer complaints – Buyers reporting unexpected drop shipped products can trigger policy enforcement.
4. Repeated drop shipping violations – If a seller has a history of drop shipping infractions, Amazon is more likely to restrict FBM privileges.

Once Amazon flags an account for drop shipping violations, the seller must submit an appeal proving compliance before FBM reinstatement can be granted.

Case Study: How We Achieved Amazon FBM Reinstatement for Hapag-Lloyd

The Allegation: FBM Privileges Deactivated Due to Drop Shipping Concerns

A client, Hapag-Lloyd, approached us for help after losing FBM privileges due to an alleged drop shipping violation.

Amazon’s system detected that past fulfillment activities from 2021 included drop shipping, even though the seller had since transitioned to direct fulfillment.

Key Challenge:

• Amazon flagged historical drop shipping activity, even though the seller was no longer engaging in the practice.
• The seller’s FBM privileges were revoked, restricting their ability to fulfill merchant-fulfilled orders.

Amazon FBM Reinstatement Strategy That Led to Success

1. Providing a Clear Explanation of Past Drop Shipping Activity

• The seller clarified that drop shipping was only a minor part of their business in 2021 and was later discontinued.
• We provided documents proving direct fulfillment, including warehouse operations and supplier agreements.

2. Demonstrating Compliance with Amazon’s Policies

• The seller outlined current fulfillment practices, showing all inventory is now handled in-house.
• We highlighted operational improvements, including dedicated fulfillment centers and logistics tracking.

3. Submitting a Structured Amazon FBM Reinstatement Appeal

• Root Cause: Amazon flagged outdated drop shipping records.
• Corrective Actions: The seller submitted proof of direct fulfillment and explained the complete transition away from drop shipping.
• Preventive Measures: The seller implemented quarterly compliance audits to ensure continued adherence to Amazon’s policies.

The Outcome: First-Submission Amazon FBM Reinstatement

Due to a well-prepared POA, supporting documentation, and compliance assurances, Amazon restored FBM privileges on the first submission.

Step-by-Step Guide to Appealing an Amazon FBM Suspension

If Amazon suspends your FBM privileges due to drop shipping concerns, follow this structured process to increase your chances of reinstatement.

Step 1: Review Amazon’s Notification Carefully

Amazon’s suspension notice will include:

• The specific FBM privileges revoked
• The reason for the drop shipping violation
• Instructions for submitting an appeal

Step 2: Gather Supporting Documentation for Amazon FBM Reinstatement

To support your appeal, provide:

• Invoices from authorized suppliers proving direct fulfillment
• Warehouse operation proof such as shipping records or facility photos
• Updated fulfillment policies showing compliance with Amazon’s requirements

Step 3: Draft a Strong Amazon FBM Reinstatement Appeal (POA)

Amazon requires a structured POA covering three key areas:

1. Root Cause (Why FBM Suspension Occurred)

• Example: “Amazon flagged our FBM privileges due to past drop shipping records. However, we no longer engage in drop shipping, and all fulfillment is now in-house.”

2. Corrective Actions (Steps Taken to Resolve the Issue)

• Example: “We have ceased all drop shipping activity and now manage all orders internally. Attached are invoices and supplier agreements confirming direct fulfillment.”

3. Preventive Measures (How You Will Prevent Future FBM Issues)

• Example: “We have implemented fulfillment audits and policy compliance checks to ensure all future orders comply with Amazon’s FBM guidelines.”

Step 4: Submit the Amazon FBM Reinstatement Appeal

• Log in to Seller Central and go to Performance > Account Health > Appeal.
• Attach the POA and supporting documents.
• Submit the appeal and monitor responses in Performance Notifications.

Step 5: Follow Up on Your Amazon FBM Reinstatement Request

Amazon typically responds within 24-72 hours. If an appeal is rejected:

• Revise the POA based on Amazon’s feedback.
• Provide additional supporting evidence if requested.

How to Prevent Amazon FBM Suspensions in the Future

To protect FBM privileges, sellers should:

• Eliminate unauthorized drop shipping and fulfill orders only through their warehouse or authorized suppliers.
• Ensure all products comply with Amazon’s branding rules to avoid misleading customers.
• Maintain organized invoices to verify sourcing and fulfillment compliance.
• Regularly check Amazon’s Account Health Dashboard for policy violations.

By staying proactive, sellers can avoid future Amazon FBM reinstatement appeals and maintain their business operations.

When to Seek Professional Legal Assistance for Amazon FBM Reinstatement

If multiple FBM reinstatement appeals are denied, sellers should consider professional legal support.

Legal intervention is recommended if:

• Amazon denies multiple appeals despite valid documentation
• A competitor files repeated policy violation complaints
• Amazon imposes permanent FBM restrictions

At Amazon Sellers Lawyer, we specialize in Amazon FBM reinstatement and compliance appeals. We do not offer free consultations, but we provide strategic legal support for account and FBM privilege reinstatement.