Since April this year, numerous Amazon sellers have been receiving verification notices from the platform, signaling an impending wave of account reviews. Reports suggest Amazon plans to issue notifications on May 12 targeting accounts registered before 2022 (primarily on the US marketplace) for secondary authentication, focusing on verifying business licenses, address documentation, legal entity identification, and contact information.
Three Key Account Types Under Scrutiny
The current verification process will primarily focus on three categories of seller accounts:
- Legacy accounts: Accounts registered in 2021 or earlier will undergo comprehensive evaluation of historical operational data and current credentials.
- Personally registered accounts: Accounts registered using personal identification may face compliance issues and should upgrade to business credentials immediately.
- Third-party purchased accounts: Accounts acquired through resellers often contain opaque information or non-compliant credentials, making them primary targets for enforcement.
The INFORM Consumers Act: Tightening Compliance Requirements
On May 10, 2023, Amazon announced that the INFORM Consumers Act would take effect on June 27, 2023 (Beijing Time). This legislation aims to enhance e-commerce transparency and consumer protection while imposing stricter compliance requirements on high-volume third-party sellers.
Key Provisions of the Act:
The INFORM Consumers Act applies to third-party sellers on Amazon who meet all the following criteria:
- Sell new (or unused) products
- Have achieved 200 or more discrete sales totaling $5,000 or more in any continuous 12-month period during the past 24 months
Qualifying sellers must provide and verify the following information:
- Business identity information including company name and registered address
- Government-issued identification documents (business license, tax registration, etc.)
- Valid physical business address
- Bank account information for receiving payments
- Valid email address and phone number for platform communications
- Tax identification numbers (VAT, corporate tax ID, etc.)
Amazon's Implementation: Annual Information Verification
To ensure data accuracy, Amazon will conduct annual information verification for qualifying sellers under the INFORM Consumers Act. Sellers failing to provide required documentation or pass verification risk payment withholding or account suspension.
Proactive Measures for Sellers
Facing increasingly stringent verification policies, sellers should take immediate action to ensure compliance:
1. Comprehensive Self-Audit
Thoroughly review all account information including business licenses, address documentation, legal entity identification, and contact details. Pay special attention to legacy accounts registered before 2021, updating any expired information.
2. Timely Information Updates
Report any changes to business address, legal representatives, or other critical information to Amazon immediately, submitting supporting documentation to maintain consistency between platform records and actual circumstances.
3. Standardized Operations
Strictly adhere to Amazon's policies, avoiding prohibited practices like false advertising or intellectual property infringement. Compliance forms the foundation of account security during verification processes.
4. Careful Vendor Selection
When engaging third-party services, only work with reputable providers holding proper credentials. Avoid purchasing accounts through unauthorized channels to prevent compliance issues.
5. Responsive Cooperation
Upon receiving verification notices, respond promptly by submitting requested documentation within designated timelines. Seek clarification from Amazon support or professional cross-border e-commerce services if needed.
Compliance as the Cornerstone of E-Commerce
Amazon's extensive account verification represents a critical test of seller compliance. Only those operating within regulatory frameworks can maintain competitive positions in the marketplace. While compliant sellers typically pass verification by submitting required documents, those with purchased accounts or changed business credentials must prepare thoroughly to avoid account suspensions from documentation failures.