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Should you sue Amazon for deactivating your seller account?

Amazon’s Cyber Monday deals are better than Black Friday.

That’s what a report said, highlighting that sellers poured more thoughts into the former than the latter. But we can’t say which event is really better until we get the final tally of sales from both.

While waiting for that, why not explore other happenings in the ecommerce space first?

  • Suing Amazon for account deactivation 🧑‍⚖️
  • Win holiday shoppers’ trust ⭐
  • Open Temu season 🪟

BLACK MARKET

Selling on Amazon comes with its ups and downs. Some challenges may even sound unfair.

But when it’s all been said and done, can you really blame Amazon?

A seller asked on Reddit whether or not they should sue after the retailer violated its own provision.

❓ What happened?

  • OP has been selling on Amazon since 2022 and has built a 7-figure retail arbitrage (RA) business.
  • Then, one of their ASINs got flagged. Amazon requested authenticity verification for the ASIN. 🚩
    • The product was sourced from Walmart, an authorized distributor for the brand.
    • The brand owner was notified. They also confirmed the product’s authenticity.
  • Despite submitting (and resubmitting) the same documents and completing video interview verification, Amazon deactivated the seller account. The retailer cited Section 3 of the Amazon Services Business Solutions Agreement (BSA).
  • Section 3 violations happen a lot to RA sellers. So, OP asked how others handled their issues and if pursuing legal action could be a viable solution.

🙅 It’s a NO

Many seasoned pros answered with a resounding “No, don’t sue.” Some gave examples of brands and cases similar to OP.

The reason: buying items from Walmart and other authorized retailers doesn’t make you an authorized reseller yourself.

If you received a Section 3 violation, you can dispute it via the “Submit appeal” in Seller Central. If Amazon is truly in the wrong, opt for arbitration instead. You can get lawyers to mediate and negotiate with Amazon’s lawyers to reinstate your account. It’s cheaper but should still be the last resort.

TOGETHER WITH REVIEWSCOOP

How to win holiday shoppers’ trust through product reviews

No, it's not compelling high-quality photos. It's not just ranking on the first page of the SERPs.

If it's not these factors that people say you should pay utmost attention to, then what is?

We'll let you in on a secret most Amazon sellers don't know: it's high-quality product reviews!

But what if you're new to selling on Amazon and don't have any reviews about your product yet? How will you stand out from your competitors?

ReviewScoop has got you covered!

It's the safest way to get reviews and social proof from genuine testers, fast!

What you'll get:

  • Hassle-free process—just reviews, no headaches
  • High-quality verified product reviews for as low as $199/month
  • Recurring monthly reviews

Use high-quality reviews as leverage against your competitors. Let your products shine with verified product reviews!

Interested in trying this out? Get 5 FREE Amazon 5-star ratings on your first order ($100 value!)

Learn more

BITES OF THE WEEK

BIG IDEA

ICYMI: You can now sell on Temu with no invitation needed

For dissatisfied Amazon sellers, Walmart has always been the second marketplace option. A few others prefer building with Shopify.

Now, Temu is also a quick and easy option, according to PYMNTS.

👐 Temu opens its market

A Temu spokesperson emailed PYMNTS saying: “Whether small businesses or individual entrepreneurs, [U.S. sellers] can now connect directly with millions of consumers.” 

Previous news shared that Temu will open to the U.S. and E.U. as early as March of this year. Before this open enrollment, Temu was selectively recruiting U.S. sellers for about 6 months using invitation codes.

📢 So, this update was long expected. To get started:

What does this mean for sellers?

Well, this means a new market and new revenue streams. Wouldn’t it be a great opportunity to enter 2025 soon with a wider market through Temu?

Let us know what you think about this by replying to this email! 📩

Author : SellerBites
Faith began working on SellerBites in 2021, a weekly newsletter that provides sellers with the latest news and updates in FBA. With first-hand experience in managing various seller and vendor accounts, she understands what sellers face on this platform. Her background led to the conception of SellerBites, which main goal is to help people become better, more informed entrepreneurs in the Amazon marketplace.
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