Amazon Sellers Policy News: Sales Velocity Suspensions Threatening Fund Holds of Over $500,000
Over the past few weeks, we have noticed the rise of an uncommon type of suspension for “sales velocity.” These suspensions flag a seller’s account for unusual purchase growth patterns that Amazon could be potentially in violation of their Business Solutions Agreement. In this blog, we expand further on the rise of these suspensions, discuss options for sellers who have been suspended, and note the importance of monitoring policy changes at Amazon.
Amazon Sales Velocity Suspensions
Sales velocity is a system that is determined by Amazon’s internal systems, which track sellers on their projected sales month over month. Typically, this is formed based on the number of orders and reviews for products and creates certain thresholds a seller can reach before being flagged. When you receive notification of a sales velocity suspension, these internal systems have flagged that you have crossed their reasonable expected threshold for how your account should have grown.
These enforcement measures are justified by Amazon wanting to avoid sellers with suspicious purchasing activity that could potentially use their service as a way of illegally exchanging money. Sales velocity protects them from these potential legal investigations against Amazon.
One trend we have noticed at Amazon Sellers Lawyer in our decade of helping sellers has been that sales velocity suspensions often come in waves. Rather than having more standard, consistent levels of enforcement, sales velocity cases seem to often come in groups across the platform. For this reason, it’s important to be monitoring your sales data as we potentially come around to another cycle of sales velocity suspensions.
Amazon Sellers Account Reinstatement for Sales Velocity
Reinstating accounts suspended for sales velocity violations requires completion of a typical Amazon Plan of Action (POA) appeal with supporting evidence of your order data and fulfillment. POAs should address the ways in which your product growth was natural, looking at potential explanations for the spike in sales with supporting evidence.
Our team at Amazon Sellers Lawyer has found that some of the key evidence for reinstating sellers from these suspensions relates to proving that you actually shipped your orders. Providing Amazon with an order history report from your seller central dashboard, as well as shipping logs if you are seller-fulfilled will support your case that you are genuinely experiencing a spike in product orders. Additionally, any examples of positive feedback from customers reflected in increased review activity will help develop your case.
Recently, we were contacted by a client who had received notification of an account freeze pending investigation for suspicious sales velocity. Over $500,000 of funds were withheld from distribution to this seller, requiring immediate attention from our team. On first appeal, we were successful at getting this hold lifted and restoring the seller’s account to normal health. Getting the money back in the pockets of our client was done through evidencing their legitimate business growth and the completion of all fulfilled orders.
Contact Amazon Sellers Lawyer Today
If you receive notification about frozen account funds or the suspension of your account and are confused on your next best steps, contact Amazon Sellers Lawyer today. We have been working exclusively on helping sellers deal with these issues since 2016 and have seen the ebbs and flows of issues like sales velocity. Give us a call today 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.