Amazon Policy News: Dropshipping Continues To Be Top Cause of Suspensions
Dropshipping is a common practice for many sellers on Amazon. Though it is legal, it is one of the most common reasons for sellers to be suspended on the platform. In this blog, we walk you through Amazon’s policies related to dropshipping, how dropshipping suspensions can be appealed, and Amazon Sellers Lawyer case data that identifies ways we have helped our clients reinstate their accounts.
Is Amazon Dropshipping Legal?
Yes, but Amazon enforces strict requirements for sellers fulfilling their orders with dropshipping. Specifically, you are required to be listed and visible as the seller of record when a customer receives a product. This means that the package that the customer receives when they order from you must only identify you as the seller and contain no conflicting receipts with your supplier.
Additionally, Amazon has several requirements for how you handle your relationship with both customers and your supplier. You must be responsible for quality control and processing refunds for any products that are fulfilled through dropshipping. It is also important to have an agreement with your supplier that states you will be the seller of record and that conflicting information about product sourcing will be removed when shipped to customers.
Because many new sellers rely on dropshipping, obtaining agreements with suppliers can be difficult and time consuming. However, it is important to remember that these agreements, or verifying and repackaging your own products, are key to staying in good standing with Amazon and avoiding suspension.
Dropshipping Suspensions on Amazon
Many different factors can trigger a suspension related to dropshipping concerns on Amazon. Most are rooted in customer confusion or dissatisfaction with a product leading to a review of your account which finds suspicious activity. This is especially concerning if a customer reports you for receiving the wrong product because the packaging improperly labels your supplier instead of you as the seller.
Handling these suspensions is done through an Amazon Plan of Action (POA) appeal with supporting documentation. POAs consist of three written parts: a root cause analysis, immediate corrective actions, and future preventative measures.
For sellers who are following Amazon’s requirements for dropshipping that have been falsely reported for violations, it is key to provide documentation of your agreements with suppliers and show the positive experiences customers have had with your products. If you are willing to make the switch to fulfillment by Amazon (FBA) or fulfilling orders yourself, this will also support your case for reinstatement.
If you are a seller who has been operating around Amazon’s rules, it is much harder to secure reinstatement without concessions. This usually means committing to using FBA in the future over dropshipping in your POA so that Amazon wants to have you back on their platform. You can attempt to fight and show agreements with suppliers, but sellers looking for quicker reinstatements should consider switching to FBA.
Amazon Sellers Lawyer Dropshipping Suspension Appeal Cases
The Amazon Sellers Lawyer team frequently works with clients who have been suspended for dropshipping violations to restore their account and their ability to sell on Amazon. In one recent case, we helped reinstate a client who had been suspended for drop shipping violations and was stuck with submitting failing POAs.
When we took on this case, we immediately conducted an assessment of the client’s internal practices and found that they were doing basically everything right. Despite using dropshipping for sourcing however, their packaging occasionally had conflicting information for customers which led to it being flagged by Amazon’s teams.
We worked with the client to create a strategy tailored to their business needs while also demonstrating why they should be reinstated to Amazon. Because they already inspected their products at their warehouse, our client was willing to switch to FBA and used this as key to arguing why they should be reinstated. On first appeal with Amazon Sellers Lawyer, we got our client’s account fully restored and back to selling.
Contact Amazon Sellers Lawyer Today!
If you are currently suspended for dropshipping violations on Amazon, Amazon Sellers Lawyer can start working on your case today! We have been focused exclusively on helping sellers like you since 2016 and know how to navigate the challenges you are facing. Give us a call today at 212-256-1109 or fill out our online form 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.