Amazon Sellers News: $500,000 Released From Amazon Plan of Action Appeal
One of the most frustrating experiences of being an Amazon seller is how Amazon can hold seller funds when their account is under investigation. Recently, the Amazon Sellers Lawyer team took a case where we helped secure the release of $500,000 for a client through the creation of an Amazon Plan of Action (POA) appeal. In this blog, we walk you through why Amazon freezes accounts, how we helped this seller get reinstated on the platform, and where to contact if this happens to you.
Withheld Funds on Amazon
Having one’s funds withheld on Amazon is usually caused by an investigation being launched into the activity on your seller account. This most typically occurs when an account is suspended, and Amazon seeks to hold money in order to fulfill customer returns. Amazon has the right to do this under their Business Solutions Agreement, where they reserve the right to hold seller funds for up to 90 days with extensions. Because Amazon has the right to extend the hold, they often do until a seller resolves any outstanding account issues, such as suspensions.
This means that responding to the investigation is often necessary for sellers to see the release of their funds. Typically, this is done through preparation of an Amazon POA, which discusses your response to the suspension and how you are planning on avoiding future term violations. Additionally, sellers who are not looking to return to the platform have the option of appealing only for access to their funds.
Amazon Appeals – How Our Client Got $500,000 Back
The Amazon Sellers Lawyer team was recently contacted by a client who had a case that was abnormal for withheld funds. This seller had been alerted of a sales velocity issue, meaning that Amazon froze more than $500,000 of their funds until they responded to the allegations.
Sales velocity is an enforcement action in which Amazon is suspicious of why your account has so many sales in a small period of time. For most sellers, patterns of growth are consistent, meaning a slow amount of increased sales over time. However, sales velocity issues arise when there are sharp spikes of increased sales. In order to mitigate the risk of sellers using illegal methods to boost their sales, Amazon monitors these issues and can require a response that verifies you are selling to legitimate customers.
Since this client had a sales velocity issue, this means that they were not fully suspended from selling, but their funds were frozen until they responded to the claim. We helped our client prepare an appeal which demonstrated they had legitimate sales with real customers, leading to the release of all $500,000 of their funds on the first appeal.
Contact Amazon Sellers Lawyer Today!
Cases like this show why the Amazon Sellers Team is a great contact whenever Amazon comes knocking with enforcement actions. Our team has been focused exclusively on helping sellers since 2016 and we are ready to help you get back to business as normal. Give us a call at 212-256-1109, or fill out our online form linked here.
About the Author
CJ Rosenbaum, Esq.
CJ Rosenbaum is the founding partner of Amazon Sellers Lawyer. He’s been practicing law since 1995, and since 2016 his firm has focused exclusively on helping Amazon sellers deal with issues like suspensions, intellectual property disputes, and withheld funds.
CJ has written six books on Amazon seller legal issues including the Amazon Sellers’ Guide to Copyright Law. He has spoken at major industry events like the Prosper Show, Global Sources Summit, Retail Global. CJ also works with the Amazon Sellers Lawyer team to provide free content for Amazon sellers. This is available through their online blog and YouTube channel, frequently covering major Amazon updates and important topics relevant to the seller space.
Through BrandProtectionAmazon.com, the firm also supports brands in protecting their products. This gives the team the unique opportunity to learn from case wins on both sides of the fence, strengthening protection for both the sellers and brands that Rosenbaum & Segall P.C. represents.
Amazon repeatedly rejecting your Plan of Action? Amazon Sellers Lawyer handles suspension appeals and account reinstatement cases – including arbitration against Amazon when they’re withholding seller money. Contact us to discuss your situation and figure out the best path forward.