It’s a nightmare scenario that has befallen many – too many – Amazon sellers and brand owners: the dreaded account shutdown email. Titled simply “Your Amazon.com Selling Account”, no matter the perceived transgression, this cryptic email offers little of use in terms of what happened and how to reconcile the issue. It’s the seller’s responsibility to figure it out, and that can be tougher than it looks. To make matters worse, an incorrect appeal can result in permanent account loss, even if there was in fact no offense committed. In this four part series we explore the four main causes of account suspension and share what we did for our clients in each of these situations to get them back online.
The Back Story: How Supply Chain Disruptions Led To A Costly Scam
As you may recall, during the pandemic and after, there were widespread issues throughout the international shipping and logistics world. Shipments were taking much longer to make their journey, and costs associated with each aspect of the network were much higher too. As Earth’s gears slowly ground to life again, everyone was doing what they could to get their own lives back on track as well.
Back in 2022 our client was enjoying great post-pandemic success on Amazon, on track for more than $100 million in annual sales reselling electronics and audio gear like turntables and headphones from reputable brands like Audio-Technica, Beats, Bose, and more. But he ended up in the exact same pandemic-induced predicament that so many other companies were at the time. Suppliers were unable to fulfill orders. So he asked his supplier if there was any other way. Perhaps there was a shipment already in the US somewhere that he could get his hands on? The client’s legit (and reputable) supplier did know of someone who may be able to help. Unfortunately that person was not legit or reputable… but the supplier didn’t know that.
Soon after introductions were made, the client purchased a shipment of Audio-Technica turntables from the contact, paying more than $100 a unit for them. As you may already know, stolen items are often sold at a very low price, but this was the expected price. They typically retail for nearly $200. Everything seemed on the up and up, and all the numbers made sense. So he bought the merchandise and sent it to Amazon per his SOP, and about a month later he received a visit from a law enforcement officer investigating a stolen truck.
“What happened was a truck was hijacked on the east coast. Then the stolen goods were transported to the west coast and re-sold, which means the bad guys first had to take it across the country, then find someone with the means to buy it, and that person had to be someone who was legitimate enough to be recommended by other people. The amount of effort that went into this scam was pretty substantial,” says Rachel Johnson Greer, founder of Troveres.
Lesson: Always Be Vigilant About Stolen Goods In Your Supply Chain
So the client did buy stolen merchandise, but they didn’t know it was stolen, making them a victim too. The law enforcement officer indicated they’d seen a recent spike in stolen goods activity due to supply chain issues from the pandemic. This made sense because it had been quite a while since Rachel had seen anything like this.
Back in the earlier days of Amazon Marketplace, this kind of thing was a little more common. It was a wide-open marketplace and the rules were new. Who could sell on Amazon.com? Anyone! To be fair, that’s still true. Just about anyone with a bank account and an internet connection can sell on Amazon. But there are certain hurdles now. Only legit businesses need apply. Over time as Amazon has dialed in on their guidelines for selling, the less professional sellers have fallen by the wayside. Either they can’t get up and running to begin with, or they get suspended for a policy violation and are unsuccessful at navigating the appeals process.
These days, it’s simply unheard of for a seller who is by all accounts highly successful on Amazon, to be shut down for selling stolen merchandise. You simply don’t reach that level of success with less than honest business practices.
“Anti counterfeit measures are one thing, but this is why you should also do supply chain due diligence to check for stolen goods. If it could happen to this client, it can happen to anyone,” says Rachel.
Behind the Scenes: The Fight For Reinstatement
The lengths we had to go to to get him reinstated were above and beyond. Amazon had been tipped off by law enforcement that he was selling stolen goods. So they simply shut him down, because that remedies Amazon’s liability in the matter. But Amazon doesn’t have an appeals process for “yes, the goods were stolen but we were victims too.”
To help them, we worked closely with law enforcement, first obtaining a copy of the case report that identified the client as a victim. Later, we coordinated a telephone call between the officer and the Amazon investigator. This was a huge win in and of itself because investigators don’t have the ability to take inbound calls, and outbound calls are not part of any SOP they follow. Truthfully, anything outside of standard operating procedure is unlikely to be successful. This is because the whole department is built on strong procedures with yes/no logic. This whole case was extraordinary in every way.
A lot of strings were pulled on the client’s behalf, and hough they were eventually reinstated after nearly two months of pushing, Amazon placed them on a watchlist where all their actions are closely monitored.
Seller Tool: The Beauty Of Bin Checks
Soon after reinstatement he received a letter from Amazon accusing him of selling counterfeit items. He immediately reached out to us. Though his own previous attempts at account reinstatement were unsuccessful, and he likely would have needed an assist no matter what, there were missteps in his handling of the appeals process, so we told him to always come to us before doing anything.
All we needed to do in response to the letter was file bin checks on the inventory in question, and follow up with Amazon sharing the findings that confirmed the merchandise was authentic.
In spite of the fact that this client had been so successful on Amazon he somehow had never been made aware of bin checks. He didn’t know that you can file a ticket to have someone in a warehouse physically go and photograph your merchandise, which is a key action in certain situations. It was surprising that he had been able to make it that far without such an elementary bit of Amazon wisdom. If bin checks are new to you too, check out the bin check request FAQ in Seller Central (must be logged into your seller account to view).
One reason it is so important to know about bin checks is that there is always the possibility that a customer could buy a genuine product, keep it but initiate a return, then send back a counterfeit version of the product. If the inventory is commingled, and it often is, it then becomes an issue for every seller on the listing. When the products in question are high end electronics and the like, it’s completely reasonable to be aware of and look out for buyer fraud, and use bin checks to get to the root of it.
Stay One Step Ahead: Attentiveness Protects Your Amazon Business
For sellers and brands on Amazon, knowledge and vigilance are paramount. As this story shows, even the most seasoned sellers can find themselves in situations where the stakes are high and the risks unexpected. Navigating account suspensions, appealing Amazon’s decisions, and implementing essential tools like bin checks can mean the difference between a thriving business and a permanent shutdown. On a platform where so many of your actions are scrutinized, taking proactive steps to secure your supply chain and stay informed on Amazon’s best practices isn’t just wise—it’s necessary. Protect your business by staying one step ahead and seeking expert guidance when challenges arise. As you’ve seen in Parts 1 & 2 of this series, there is no shame in seeking help… in all likelihood you really do need it.
Investing in expert help now can save you from the immense headache of reinstating your account later, giving you peace of mind and the confidence to grow your brand on Amazon. Let us know how we can help.
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At Troveres we help brands articulate their story in unique and beautiful ways that utilize strategic, data-informed steps that drive engagement and increase conversion rates. Our content strategy was developed by former Amazonian of eight years Rachel Johnson Greer, who was part of Amazon’s private label team for more than two years, developing and maintaining brands with hundreds of products across dozens of product lines. Click here to download Rachel’s guide to Content Marketing That Converts for free.
