New US legislation takes effect this month! Amazon sellers should respond promptly to ensure compliance with regulations

New US legislation for Amazon sellers takes effect this month Sellers should respond promptly to comply with regulations

Amazon’s latest announcement shows that the US “Consumer Notification Act” will take effect on June 27, 2023, requiring high-volume third-party sellers to submit their business information for Amazon to collect, verify, and disclose. According to the law, sellers need to provide their name, identification documents, company address, bank account information, email address, phone number, and tax identification number. This change will affect both new and old sellers, so timely processing is required.

Firstly, it is important to note that “Consumer Notification Act” is not a new regulation of Amazon, but a requirement of the US federal law that applies to all third-party e-commerce platforms sellers. This law requires sellers to submit store verification information once a year to ensure compliance in operation.

For sellers who have completed the account verification, and if the relevant information has not been changed, no further action is required and the account will remain normal. However, for sellers who need to undergo additional verification, Amazon will contact them via email and provide operation guidance.

It is worth noting that account verification is not a behavior of account suspension or fines, but only temporarily suspends the unverified account. Once the verification is successful, the account will immediately be restored to normal.

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Regarding the specific process of account verification, sellers need to submit relevant information according to Amazon’s requirements. During this process, sellers need to provide identification information, government-issued photo ID, bank account or credit card bills, and business licenses (if applicable).

In order to smoothly pass the verification, here are some suggestions:

Ensure that the submitted information is clear, complete, and valid, as the verification process is first screened by a robot.

If the backend address of the account is inconsistent with the address on the business license, the address on the business license can be used.

About the requirements for bills: bank statements need to show the bank name, logo, account number, and account holder’s name, and must be issued within 180 days. The account number and account holder’s name on the bill must be consistent with the information provided when registering.

Only one credit card bill under the name of the legal person’s residence or office address needs to be submitted for the credit card bill, which is not related to the credit card used for account registration and charging.

For individual business account registration, submitting the legal person’s bank card bill can pass the review successfully.

It should be noted that for some special accounts, such as personal accounts that have not registered a business license, you can apply for personal certification from customer service, which only requires providing your ID card and bill.

During the account verification process, there may be cases where the verification fails. Some common reasons include not submitting the legal person’s billing statement, submitting the company’s billing statement leading to inconsistency between the account holder’s name and the name on the resident ID card, and inconsistency between the company name information and the business license. Therefore, when submitting verification materials, ensure accuracy and consistency.

Facing this wave of changes in account verification, it is recommended that all sellers do not hold a lucky mentality. Even if you have not received a verification notice, it may be a matter of time, so it is recommended to prepare relevant materials in a timely manner to ensure smooth verification.

It is important to realize that shops registered through compliant and legal channels can operate on Amazon for a long time. Therefore, both new and old sellers should take account verification seriously, comply with relevant laws and regulations, and ensure their own compliant operation.

In order to better cope with the changes in account verification, sellers can also consider seeking the help of professional service providers, but they should be cautious in their choice and weigh the value of the account against the cost.

In summary, the changes in Amazon account verification require sellers to submit relevant materials as required to ensure compliant operation. Although verification may bring some trouble and additional costs, it also helps to maintain the business environment and improve the control level of account transactions. It is recommended that all sellers actively respond and operate their shops in a compliant and legal manner to ensure long-term and stable development on Amazon.

The author of this article is Mr. Mark, the Chief Economist of Easy Tax.

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