Violating Amazon Section 3 can come with huge consequences.
Amazon takes its position as the ecommerce giant seriously. After all, they earned $575 billion in 2023.
Why do so many global consumers turn to Amazon when making purchases? Amazon is a safe platform with high-quality sellers and products. Why does Amazon offer an exceptional customer experience? Amazon has strict compliance measures for sellers.
When agreeing to sell on Amazon, you agree to several terms in your contract. One of the most important policies is Amazon Section 3.
What is the Amazon Section 3 policy, and how does it affect your business? What happens if you violate it? How do you avoid an Amazon Section 3 violation? We’ll answer all these questions and more.
What Is Amazon Section 3?
Before we cover Amazon section 3, let’s cover the Amazon Business Solutions Agreement. This contract highlights your responsibilities as a seller and Amazon’s responsibilities as an ecommerce platform.
Section 3 of the Amazon Services Business Solutions Agreement is the termination section, which covers why Amazon may suspend or terminate your account.
Common Amazon Section 3 Violations
Amazon may suspend or terminate your account with or without warning, but they usually won’t do this unless you break their rules. Here are some of the most common violations that sellers break.
Misuse of Amazon’s Platform
This is one of the broadest and most confusing rules for sellers. Amazon is an online retailer and technology provider determined to offer a high-quality experience for customers and sell the best products. If sellers use the platform for anything other than this, they misuse it.
Some common examples of misusing Amazon’s platform include misrepresenting products and improper advertising/marketing. Many issues can trigger these violations, such as frequent returns and refunds.
Anything that Amazon may consider suspicious activity, such as spam, is a misuse of the platform and can result in Amazon Section 3 suspension or termination.
Soliciting and Manipulating Reviews
Amazon reviews are vital for sellers. However, soliciting customers for positive reviews and manipulating their review system grounds suspension and termination.
Amazon ensures that reviews are honest, provided by real buyers, and unbiased. Asking customers to provide a positive review or inflating positive reviews, such as posting five-star fake reviews, are all prohibited.
Selling Prohibited Products and Intellectual Property Violations
Amazon has strict rules regarding product compliance. You can’t sell any product that’s counterfeit, illegal, or hazardous in any way. In addition, if you sell any regulated product, you must have proper approval or documentation.
Selling counterfeit products is also an intellectual property violation. A common example is pretending to be a name-brand seller by using or altering their trademark and logo. This is a serious offense.
Consumers can report any seller violating intellectual property and copyright laws.
Related content: Amazon Suspension Insurance
Failure to Maintain Performance Metrics
Even if you follow all the rules, your account could be suspended or terminated if you sell low-quality products.
Amazon requires all sellers to maintain certain performance standards. If your orders are often canceled, you receive too many defective product complaints, and you struggle to ship orders on time, you will still be in violation of Section 3–even if you’re committing simple Amazon seller mistakes.
What Happens If You Violate Amazon Section 3?
Violating Section 3 can result in either account suspension or termination.
When your account is in suspension or termination, you won’t be allowed to sell your items or even sign in. If Amazon terminates your account, you will lose all your listings. Extreme violations, such as violating intellectual property rights, can result in legal action.
To ensure you’re not violating Section 3, all sellers must read over this part of the contract and follow the rules. Always look for suspicious or fraudulent activity, such as fake reviews or pricing changes, since hackers could cause a Section 3 violation without your knowledge.
Long-Lasting Consequences of Violating Amazon Section 3
Violating Section 3 may result in more than just account suspension or termination. If customers catch the violations, it can damage your integrity as a seller.
Here are some long-lasting consequences you may experience:
- Reputation damage. Even if you sell elsewhere, Amazon is a massive marketplace. Any violations can result in brand image and credibility issues outside the platform, impacting your overall reputation.
- Loss of sales and withheld funds. If you rely on Amazon for sales, you won’t generate revenue when your account is suspended. Amazon may also withhold your sales until you access your account.
- Product delisting. If individual products violate Section 3, Amazon may remove those listings. This can impact your visibility and sales on Amazon.
- Reinstatement challenges. Even if Amazon overturns your violation appeal, reinstating your account can be complex. You may need to contact Amazon, and there’s a chance they may require a detailed plan of action for Amazon Section 3, all of which can be time-consuming.
Tips for Avoiding Amazon Section 3 Violations
It can be scary to receive an email saying you violated Section 3. While you can appeal this decision (more on that later), it’s best to avoid violating Section 3.
For most sellers, following the rules is all they need to worry about. This includes offering the best products and services to customers, ensuring honest reviews, and not selling prohibited and counterfeit products.
But there are times when accidents happen, or you’re a victim of ecommerce fraud. In this case, there are tips to avoid such situations.
Do Your Research
Always read the entire Business Solutions Agreement fully before selling anything. You should also have a plan before you start selling. This plan should outline how you will handle payments, returns, shipping, and more.
For fulfillment, this plan could include using FBA or FBM. If you use FBA, you’re unloading many actions on Amazon. And if you use FBM, Amazon may see problems with your inventory, payment processing, shipping, and more.
It’s best to be vigilant and offer the best service if you’re using FBM. Use Amazon reports to check your performance metrics and ensure you’re satisfying customers.
Contact Amazon
If you’re receiving warnings, it’s best to contact Amazon before the situation becomes serious.
Amazon Seller Central has its own customer service line available on the Seller Support page under the Help category. Amazon will investigate any problems and offer solutions to avoid account suspension.
Sellers also have more resources. You can ask questions on the seller forum, explore free resources on Amazon Seller University, and new sellers qualify for a year of Strategic Account Services.
Ask for Help
If you received a Section 3 violation warning or your account has been suspended and Amazon isn’t helping, there are third-party platforms that can help. There are different appeal services, consultants, and lawyers who can defend you and return your access to your account.
How to Appeal an Amazon Section 3 Violation
If Amazon suspended your account, but you feel they were wrong, you can appeal their decision. Here are the steps to appeal for Amazon Section 3.
- Contact Amazon Seller Central support.
- Explain why Amazon was incorrect in suspending your account. Provide as many details and documentation as you can.
- Wait for the support team to review your case.
If Amazon chooses to overturn your account suspension, you may struggle to reactivate it. Then, you may need to contact Amazon again to reactivate your account for you.
Avoid Amazon Section 3 Violations
As the world’s ecommerce giant, Amazon has strict expectations for sellers. Amazon Section 3 is a policy in the Amazon Business Solutions Agreement that details seller account suspension and termination. All sellers must read through the contract and this section to stay compliant.
Sellers can also work with a reputable agency to ensure they follow Amazon’s guidelines and offer the best experience for Amazon customers. Click here to learn how we can take your business to the next level.
Author
Stephanie Jensen has been writing ecommerce content for seven years, and her copy has helped numerous stores rank on Amazon. Follow her on LinkedIn for more insight into freelance writing and creating high-quality content.
