Amazon’s new policy! Sellers are required to undergo an annual review, and a large number of sellers will face the impact!

Amazon's new policy requires sellers to undergo an annual review, resulting in a significant impact on many sellers

Recently, Amazon sent out a sudden mass email notification for “verification”, causing countless Amazon sellers who received the email notification to be on edge.

Today, the president of the company, combined with the latest release of the U.S. “Consumer Notice Act” on the Amazon platform, unveils the truth behind the fog!

Latest notice

On May 11th, Amazon’s U.S. site disclosed the latest announcement: the U.S. “Consumer Notice Act” will take effect on June 27, 2023. This law stipulates that high-volume third-party sellers are obligated to provide their business information, and Amazon must collect, verify, and disclose this information.

Key points interpretation

1. Audit scope: In the past 24 months on the Amazon platform, for new products (or unused products), the sales volume has continuously reached (or exceeded) 200 units for 12 months, and the total transaction amount is more than $5,000. The threshold for high sales is relatively low, and most sellers will need to verify their information!

2. Audit materials: Seller identity information, government-issued identity documents, company addresses, bank account information, work email addresses, work phone numbers, and taxpayer identification numbers.

The above information must be the seller’s company name or a legally authorized representative of the seller.

3. Audit time limit: Sellers who meet the requirements must undergo information verification once a year.

Sellers must take relevant actions according to the email content within the specified time limit, otherwise, according to the new law, Amazon may withhold funds or suspend sales accounts.

Future Impact

Considering the information above, whether it’s the verification email that Amazon sent in the early stage or the new regulations of the US “Consumer Notification Act” this time, for compliant sellers, as long as they submit the relevant materials according to the regulations, they can usually pass smoothly. However, for some sellers who have problems such as purchasing accounts, changes in business licenses, and personal seller accounts, there may be verification difficulties and bottlenecks.

Due to the implementation of this “annual review” policy, these types of stores may eventually be slowly eliminated by Amazon due to legal person or material issues.

Therefore, the implementation of this policy may be the beginning of the next “crackdown on non-compliant accounts”, and in the future, the shops that can operate on Amazon for a long time will be those that are registered through compliant and legal channels. If there is any infringement, please delete.

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