Amazon Seller News: Unsuitable Inventory Cases on the Rise
For independent Amazon sellers, unsuitable inventory claims can create mass confusion as to the nature of Amazon’s allegations against you. In the past few weeks, the team at Amazon Sellers Lawyer has noticed a large uptick in case submissions related to sellers dealing with claims that their inventory is coming from unsuitable sources. In this blog, we will walk you through the reason behind these allegations, how they can impact both creation of new products and existing listings, and what to do when you receive notice of unsuitable inventory allegations.
Related Content:
What is Amazon Unsuitable Inventory?
Unsuitable inventory on Amazon is a claim related to the sourcing of your inventory, typically allegeding that it has come from illicit means. This could mean that your inventory was stolen, is counterfeit, or otherwise violates some aspect of Amazon’s Business Solutions Agreement (BSA).
For sellers who have been around for several years, you may be familiar with unsuitable inventory claims when it was primarily related to stolen goods. However, recently the scope of unsuitable inventory has widened to include any potentially violating inventory. Additionally, unsuitable inventory can be a problem when you are attempting to register a new product on Amazon, or it can pop up even if you have had a product registered for years.
One of the key aspects of unsuitable inventory that makes it a difficult claim to resolve is the nature of your sourcing. Often, sellers who see unsuitable inventory claims have up to date sourcing provided to Amazon, a key aspect of many other enforcement actions on the platform. However, your sourcing documentation may be used against you as Amazon believes that it is fraudulent or the manufacturer is not on their list of approved suppliers.
If only one of your products are impacted by the claims of unsuitable inventory, you may only see action against your individual products. However, some sellers may see their entire account become placed under suspension if large portions of their inventory are coming from allegedly illicit sources.
The reason that Amazon treats these claims so seriously is rooted in years of dealing with goods that were illegally obtained from stolen sources. By allowing products like this to be sold on their platform, especially products that have produced intellectual property marks, Amazon can be held liable for damages against brands that they allow to happen. Therefore, any potential claims of unauthorized inventory are taken extremely seriously and require extensive planning to clear from your account health.
Amazon Appeal Submission – Unsuitable And Illicit Inventory
When claims like unsuitable inventory are made against your account, it is important to formulate a strong plan that gets your account back to selling as normal quickly. Vital to any suspension is preparing evidence and documentation for creation of an Amazon Plan of Action (POA) appeal. These are documents which allow you to address your suspension and demonstrate your commitment to being a compliant seller on the platform.
The first section of any POA is a root cause analysis, detailing the reason you believe led to your suspension. Next, sellers should discuss the immediate corrective actions they have taken in order to resolve the issue as much as reasonably possible. Finally, sellers should list any preventative measures that have been implemented into their business practices to avoid future enforcement actions.
Unfortunately for many independent sellers, a single POA document is not enough, requiring escalation appeals that use legal positioning to push for product and account reinstatement. At Amazon Sellers Lawyer, our team of experienced legal professionals is here to use legal escalation methods that greatly expedite the process of restoring your account. This includes the ability to threaten arbitration against Amazon, a tool that can help resolve even the toughest cases.
Contact Amazon Sellers Lawyer Today!
At Amazon Sellers Lawyer, we are here to help you get back to focusing on growing your business. Whether you are facing unsuitable inventory claims on a new product you are trying to register, or on a product that has existed for years, our team is here for you. We don’t just help with Amazon claims, our team works with clients selling on TikTok Shop, Walmart, Etsy, Ebay, and more to help them resolve enforcement issues on their accounts.
Contact our team for a free consultation 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 seven 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.