How to Avoid Amazon Suspensions to Your Dropshipping Business
Updated: Sep 13, 2021
In the relationship between dropshippers and Amazon, the latter wields most of the power.
According to the Wall Street Journal, sellers report a 50% increase in profits once they join the Amazon marketplace. And with a reported 5 million sellers on the platform, Amazon can afford to play fast and loose when doling out account suspensions. Think about it, with every suspension, there are thousands of new dropshippers starting their new career.
Furthermore, with such a vast pool of entrepreneurs, investigating each infraction in detail would be a practice in futility. Particularly since suspensions don’t really dent Amazon’s bottom line.
Plus, Amazon’s entire business model hinges upon taking stringent precautions that ensure both product information and inventory are of the highest quality. Therefore, as easy as it is to get suspended as an Amazon seller, it’s astronomically more difficult to be reinstated — even if you aren’t at fault.
Below is what you need to know about some of the more common Amazon account suspension scenarios so you can build your dropshipping business the right way.
Selling a “Used-Like New” Product as “New”
As a dropshipper, this is one of the more likely obstacles you’ll have to dodge. Here’s how to differentiate new items from used-like-new items:
Contain original packaging with original packaging material inside
Contain original protective wrapping intact
Contain original manufacturer’s warranty
Contain warranty details in listing comments
Used-Like New items:
Are untouched and in perfect condition
Contain original protective wrapping is potentially missing
Contain original packaging is intact and in perfect condition
Contain no signs of wear on items or packaging
Are still suitable for gifting
When dropshipping, you don’t have direct contact with your inventory. So, it’s difficult to prove the pristine condition of a product when faced with a buyer complaint. Retail stores, websites, and outlets aren’t considered valid sources of inventory by Amazon, making it quite tough to resolve these kinds of suspension.
Make sure you’re purchasing items from sources that have a good reputation when it comes to meeting Amazon Condition guidelines.
Incomplete Product Suspension
Brand owners and other Amazon sellers create catalog pages that oftentimes contain additional items in a listing. Many dropshippers fail to sufficiently research the product page and don’t end up selling the item in its complete form.
Avoiding this snafu is relatively straight-forward. Simply cross-reference product detail pages to verify that your item is a direct match.
Utilizing reliable product research software will also help you obtain the correct product information.
Order Defect Rate (ODR)
Amazon is particularly unforgiving with defects.
If your ODR rate exceeds 1%, you’ll be facing an account suspension. As such, it’s integral to track your account health page on a daily basis and to quickly resolve any A-Z cases.
While you won’t be able to remove all negative feedback, Amazon does offer leeway if you make them aware of any complaints containing vulgar language. Also, if the buyer simply doesn’t like the product itself, the feedback will be stricken from the record books.