The relationship between dropshippers, Amazon and Dropshippers is one in which Amazon holds the most power.
Wall Street Journal reports that sellers see a 50% increase on their profits after joining the Amazon marketplace. Amazon has 5 million sellers, so it can afford to be lenient when suspending accounts. Consider this: With every account suspension, thousands of dropshippers start their new careers.
With such a large number of entrepreneurs, it would be futile to investigate each case in detail. Amazon’s bottom line is not affected by suspensions,
Amazon’s business model is built on strict security measures that ensure product information and inventory are accurate. It’s easy to lose your Amazon seller status, but it’s much more difficult to get it back.
Here’s what you need to know regarding some of the most common Amazon account suspension situations so that you can build your dropshipping company the right way.
As “New”, you can sell a “Used-Like-New” product
This is one of the most common obstacles dropshippers will have to overcome. This is how to distinguish new items from old-like-new items.
Check out these new items
- Are they brand-new?
- Original packaging and original packaging material included
- Intact original protective wrap
- Original manufacturer’s warranty
- Include warranty details in the listing comments
Items that are used-like-new:
- They are in perfect condition and remain untouched
- Original protective wrap may be missing
- Original packaging intact. In perfect condition.
- Items and packaging are in perfect condition.
- Include instructions
- They are still suitable for gifting
Dropshipping is a way to avoid having direct contact with your inventory. It’s hard to prove that a product is in perfect condition when you have to deal with a complaint from a customer. Amazon doesn’t consider retail stores, websites, or outlets to be valid sources of inventory, so it can be difficult to resolve suspensions.
When it comes to Amazon Condition guidelines, make sure you only buy items from trusted sources.
Incomplete Product Suspension
Amazon sellers and brand owners often create catalog pages that include additional listings. Dropshippers often fail to properly research product pages and don’t sell the item in its entirety.
It is easy to avoid this kind of blunder. To verify your item matches, simply cross-reference the product detail pages.
Using reliable product research software can also help you get the right product information.
Order Defect Rate (ODR).
Amazon is notoriously strict with defects.
Account suspension will be imposed if your ODR rate is higher than 1%. It’s important to monitor your account health on a daily basis, and to resolve any A-Z issues quickly.
Although you can’t remove all negative feedback from Amazon, they will allow you to make Amazon aware of complaints that contain vulgar language. If the buyer doesn’t like the product, they will remove the feedback from their records.
How to avoid ODR situations
- Assess feedback and check it
- Send a removal request email if your feedback does not comply with Amazon’s removal standards.
- Removing feedback is not a compensation.
- Offer concessions in every A to Z scenario, regardless of fault.
- You may still be affected by a disputed ODR claim if it is in your favor.
Late Shipment Rate (LSR).
Expect a suspension of your account if your late shipment rate is higher than 4%
Amazon’s seller dashboard is constantly updating and seems to be conspiring against sellers. Multiple metrics are being created to evaluate all aspects of seller performance. These analytical tools need to collect more information about shipments and tracking, which increases the likelihood of violations.
You should track the following LSR metrics: late shipment rate, invalid tracking rates, return dissatisfaction, return dissatisfaction, return dissatisfaction, negative return rate (rejecting return), late response rate to returns requests, and late shipment rate.
To avoid any issues, it is important to perform manual shipment checks. Reliable software that offers reliable order fulfillment tools, such as tracking algorithms, will help you avoid late shipments.
OAGenius makes it easy for your team to upload tracking numbers and confirm shipment status.
Inability to address Intellectual Property (IP), Complaints
You may be dealing with intellectual property complaints if you receive notification from Amazon regarding patents, trademarks/tradedress, or copyrights.
Amazon will notify you and remove your product listing. It’s best to address the issue even if you don’t intend on selling the item anymore. Multiple complaints will lead to suspension.
Resolving the dispute with the rights owner is the only way to get your license reinstated. It’s important to do this quickly to avoid IP complaints.
Pro tip: Before you source a product, make sure to check our continually-updated list.
Selling/Displaying Restricted Products
Amazon can be quite picky about preventing products from being sold if they don’t meet their standards.
Be aware of restricted products to ensure you don’t fall for such violations. Amazon cannot flag all products correctly. They have often flagged incorrectly, especially with items that are health-related.
Other sellers encourage to report potential violations. Keep your account updated so that you are made aware of any flags. You can then contact Amazon support to resolve the issue quickly.
Appealing to Your Suspension
Although it can be difficult to reinstate your employment after a suspension, you have a better chance of getting reinstated if you follow the best practices.
How to appeal to your employer.
- Visit Amazon Seller Central
- Follow these steps: Seller Central>Performance> Performance Notifications> Location Suspension Notice> Appeal
- Before contacting Amazon, create an appeal outline
- To explain your approach to the problem, start with “Recovery Plan”.
- You will outline the steps you will take to avoid similar mistakes from happening again
- Your store can be a positive addition on the Amazon marketplace.
How to Improve Performance
This is a tricky question. Dropshippers are particularly vulnerable as they have little control over the shipment dates of their suppliers. This can have a negative impact on your Late Shipment rate. This can also affect other categories, as customers may complain, leave negative feedback or cancel orders.
Dropshippers can only work with reliable suppliers and maintain good communication. You won’t be left behind. In case your primary supplier is out of stock, you can have multiple suppliers for the same item.
Public relations is important with customers as well. You should immediately notify your customer if you have any suspicions that there might be a problem with an order.
To calm any feathered feathers, explain the situation and offer a credit or a freebie on their next purchase. People love to feel valued and appreciated. You shouldn’t be greedy and don’t try to justify your mistake. You can make it less difficult by trying to please the buyer, even if you are penalized for late shipping.
You can increase your sales volume to improve your performance rates. The performance categories are determined by the percentage of problem orders compared to total orders. It can be trouble if you sell 100 products and receive 2 problem orders in the same time period. If you sell 1000 items, you are still in the black.
You should only promote items that you are confident you can complete without difficulty.
However, you should not be worried about one or two unhappy customers. You should aim to provide 100 percent satisfaction. This is not only for Amazon’s sake but also to build your reputation, and to create loyalty. This is the best way to be a successful online seller on Amazon or anywhere else.
The best way to avoid Amazon suspensions, is to do everything right — from product sourcing through order fulfillment to customer support. It can be overwhelming to keep track of all that information, which is why OAGenius was created.