Key Rules & Policies you must follow for Amazon FBA

Welcome to the exciting world of Amazon, a digital marketplace filled with millions of products, all available at the click of a button.

It’s the go-to destination for sellers looking to turn their dreams into thriving businesses. But wait! Before you jump headfirst into this ocean of opportunity, there are rules and guidelines you need to know.

Don’t worry, though! Navigating these policies isn’t as complicated as it seems. This guide is here to help you understand the ins and outs of selling on Amazon. So, buckle up, grab your favorite beverage, and let’s dive into the dos and don’ts that’ll keep your business sailing smoothly on Amazon’s vast e-commerce seas.

This article won’t be particularly fun, but it will be extremely informative and stop you making any crucial mistakes which will red flag your accounts.

Here are some of the key rules and policies that Amazon sellers must follow:

  • Product Listing Accuracy: Amazon requires all product listings to be accurate, with no misleading information. This includes providing accurate details about product condition, features, and specifications.
  • Selling Counterfeit Goods: Selling counterfeit or knockoff goods is strictly prohibited on Amazon. Sellers found doing this may have their account suspended or even permanently banned.
  • Price Gouging: Amazon prohibits sellers from significantly raising prices on products in a way that could exploit events such as natural disasters or pandemics.
  • Contact Information: Amazon requires sellers to provide accurate contact information, including a phone number and email, that customers can use to reach them.
  • Customer Privacy: Sellers are not allowed to use customer information obtained through Amazon for any purpose other than fulfilling the order and providing customer service related to that order.
  • Communication with Customers: All communication with customers must go through Amazon’s messaging platform. Direct communication outside of Amazon (like email or phone) is prohibited.
  • Feedback Manipulation: Sellers are not allowed to manipulate feedback by offering incentives for positive reviews or attempting to remove or alter negative reviews in dishonest ways.
  • Shipping and Fulfillment: Sellers must ship items within the time stated in their listings and provide valid tracking information. Failure to do so can lead to negative feedback and possible account suspension.
  • Restricted Products: Amazon has a list of restricted products that cannot be sold on the platform. This includes certain types of food, alcohol, weapons, dangerous goods, and more.
  • Intellectual Property Rights: Sellers must respect all intellectual property rights, including copyrights and trademarks. Selling products that infringe on these rights is a violation of Amazon’s policies.

As you’ll understand, there’s quite a lot to go through here. We are going to break down each point, so you have a full understanding.

Let’s say you, John, have started selling electronics on Amazon. You’ve got a stock of wireless earbuds that you’re excited to list. Here’s how the importance of product listing accuracy might play out in your situation:

  1. Title: You decide to give your earbuds an appealing title. Instead of exaggerating with something like “John’s Unbeatable, Best-Selling Earbuds,” you stick to the facts and use “John’s Brand Wireless Bluetooth Earbuds with Noise Cancellation, Black.”
  2. Images: You’re tempted to use some generic images from the internet, but you decide to take photos of the actual product instead. You snap clear, well-lit pictures from multiple angles. You also take close-ups of the buttons, the charging port, and the carrying case that comes with the earbuds.
  3. Description: Now, you’re writing the product description. You resist the urge to make exaggerated claims like “unparalleled sound quality” or “lasts forever.” Instead, you list the actual features of the earbuds: “Bluetooth 5.0 connectivity, up to 10 hours of playtime, and effective noise cancellation for clear sound.”
  4. Features: In the bulleted list of features, you stick to the facts: “Bluetooth 5.0, noise cancellation, 10-hour battery life, includes charging case.” You don’t add any features the earbuds don’t actually have, like “waterproof,” even though that might attract more buyers.
  5. Condition: Lastly, you’re honest about the condition of your earbuds. You’re selling them as brand new, and you’ve made sure that they are indeed new, untouched, and still in their original packaging.

A few weeks later, you start getting positive reviews from customers who are happy with their purchase because they got exactly what they expected. Your honesty in the product listing has not only led to satisfied customers but also better ratings and more trust in your brand, which is likely to result in higher sales in the long run. Misrepresenting any aspect of your product could have led to negative reviews, returns, or even a suspension from Amazon. So, by ensuring accuracy in your product listing, you’ve made a wise business decision.

Selling Counterfeit Goods

Imagine you, Sarah, are selling designer handbags on Amazon. You’ve found a supplier who offers these handbags at incredibly low prices, claiming they are “direct from the factory.” Tempted by the potential high profits, you decide to list them on your Amazon store.

One of your top listings is “Sarah’s Designer Leather Handbag – Inspired by High-Fashion Brands, Brown.” You’re careful to use the word “inspired” to suggest a likeness without claiming it’s an authentic designer bag.

After a few weeks, you start making sales. Initially, things seem to be going well. However, one day, a customer leaves a one-star review claiming that the bag they received is a counterfeit, not an original designer bag.

The review draws Amazon’s attention. Upon investigation, Amazon determines that the handbags you’re selling are indeed counterfeit. As a result, your account is suspended, and you’re informed that selling counterfeit goods is strictly against Amazon’s policies.

Your business is now in jeopardy. Not only have you lost your selling privileges on Amazon, but your brand’s reputation is severely damaged. Customers who’ve bought the counterfeit bags are upset and demanding refunds.

This situation could have been avoided if you had adhered strictly to Amazon’s policy against selling counterfeit goods. Even though the profits might have been tempting, the long-term damage to your reputation and the potential legal consequences make selling counterfeit goods a bad business decision. Always ensure that the products you’re selling are authentic and sourced from reputable suppliers.

Price Gouging

Let’s pretend that you are an Amazon seller who specializes in essential home supplies.

During a particularly harsh winter, a snowstorm hits, causing widespread power outages in your region. Demand for portable heaters skyrockets as people scramble to keep their homes warm. Seeing this sudden demand, you might consider significantly raising the prices of the portable heaters you sell.

After all, with supply limited, people might be willing to pay much more than usual. However, this would be an example of price gouging, and it’s strictly against Amazon’s rules. So, instead of increasing your heater prices from $50 to $200 overnight, you decide to continue selling them at a fair price.

This decision does not go unnoticed by your customers. They appreciate your integrity and leave positive reviews, thanking you for not exploiting the situation. Word spreads, and more customers start coming to your store, knowing they can trust you to offer fair prices, even in times of crisis.

Then, Amazon’s algorithm detects sellers in other stores who increased their prices excessively during the snowstorm. Those accounts are flagged for price gouging, and some are even suspended. But because you chose to maintain fair pricing, your account remains in good standing. Remember, while it might be tempting to take advantage of high-demand situations, price gouging can lead to account suspension and damage your reputation. It’s always better to price your products fairly and maintain the trust of your customers.

Contact Information

When you set up your seller account on Amazon, you’re required to provide accurate contact information. This includes a valid phone number and email address. Amazon uses this information to contact you if there are any issues with your account, but it’s also there for customers who may have questions or issues with their orders.

Let’s consider a hypothetical situation:

Imagine you, David, are selling kitchen appliances on Amazon. You’ve just launched a new line of blenders, and they’re selling quite well. However, when setting up your account, you entered an old email address that you no longer use, and the phone number you provided goes straight to voicemail.

One day, a customer has an issue with the blender they purchased. They try to contact you through Amazon’s platform, but their email bounces back because the address you provided is no longer in use. Then they try calling you, but their calls go unanswered.

The frustrated customer leaves a negative review, stating that their blender broke and they couldn’t reach you for a resolution. Other potential customers see this review and decide not to buy your blender because they worry they might encounter the same problem.

Meanwhile, Amazon notices the bounced emails and the complaints about unreachable customer service. Your account gets flagged, and you’re asked to update your contact information.

In this scenario, by not providing accurate contact information, you’ve not only lost potential sales due to negative reviews, but you’ve also risked getting your account suspended by Amazon. Always ensure that the contact information on your account is up-to-date and that you’re readily available to address customer issues or inquiries. This will lead to better customer satisfaction, better reviews, and ultimately, more sales.

Customer Privacy

When you make a sale on Amazon, you receive certain pieces of customer information necessary for order fulfillment and customer service. This might include the customer’s name, shipping address, and contact information. Amazon’s policies strictly prohibit using this information for anything beyond order fulfillment and related customer service.

Now, consider this situation:

Imagine you run a successful Amazon store selling handmade candles. One day, you decide that you want to start a newsletter to keep your customers informed about new scents, sales, and candle care tips. You think it would be a great idea to use the email addresses you’ve gathered from your Amazon sales to kickstart your newsletter subscriber list.

So, you start sending out your newsletter to these emails. However, several of your Amazon customers did not expect to receive a newsletter from you and are upset about their email addresses being used in this way. They report this to Amazon, claiming a violation of their privacy.

Upon investigation, Amazon determines that you’ve indeed used customer information for a purpose other than fulfilling orders or providing related customer service. This is a breach of their customer privacy policy. Consequently, your seller account faces penalties, which could include suspension.

This situation could have been avoided if you had adhered to Amazon’s privacy rules. While building a newsletter is a good idea, it’s crucial to obtain explicit permission from customers before adding them to any mailing list. Always respect customer privacy and use their information only for the purposes allowed by Amazon’s policies.

In the long run, this will help you build trust with your customers and maintain a good standing with Amazon.

Communication with Customers

As a seller on Amazon, you’re required to communicate with customers through Amazon’s messaging platform. This policy is designed to protect both sellers and buyers by ensuring that there is a record of all communication. Directly contacting customers outside of Amazon—for example, via personal email or phone—is strictly prohibited.

Imagine this happens:

A seller has just launched a new line of organic teas on Amazon. A customer messages the seller through Amazon’s platform, inquiring about the sourcing of the teas and their caffeine content. The seller, wanting to provide excellent customer service, decides to reply directly to the customer’s personal email, thinking it might be a more personal and efficient way to handle the inquiry.

The customer, surprised by the direct email, reports this to Amazon as they were not expecting to be contacted outside of Amazon’s platform. Amazon investigates and finds that the seller has indeed breached the policy about communicating with customers. As a result, the seller is warned, and their account is put under review, risking potential suspension.

This scenario could have been easily avoided if the seller had replied to the customer’s inquiry through Amazon’s messaging platform, following Amazon’s communication rules.

While direct contact might seem more personal, it’s important to respect Amazon’s policies and the customer’s expectations for privacy and security. Using the designated platform ensures that all communication is documented, which can be beneficial in case of disputes or misunderstandings.

Feedback Manipulation

When you’re using Amazon’s Marketplace, you mustn’t try to manipulate your store’s feedback in any way. This includes creating fake accounts to leave positive reviews, offering incentives for customers to leave good reviews, or trying to remove or alter negative reviews dishonestly.

Here’s another scenario to image:

A seller on Amazon, let’s call him “Sneaky Pete,” is not thrilled with his store’s overall rating. He hatches what he thinks is a genius plan. Pete creates several fake accounts and starts leaving glowing reviews for his products. “Best product since sliced bread!” one review says. “I can’t believe I’ve lived without this!” exclaims another.

At the same time, Pete tries to bribe his real customers into leaving 5-star reviews by offering them a discount on their next purchase. He even goes as far as contacting a few customers who left negative reviews, promising them a full refund if they delete their not-so-glowing feedback.

However, Pete’s “master plan” soon unravels. Amazon’s algorithms are smarter than your average bear and quickly sniff out the unusually high number of positive reviews coming from new accounts. The offered incentives and attempts to remove negative reviews also raise red flags.

Amazon investigates and finds Pete’s sneaky fingerprints all over these feedback manipulation attempts. As a result, “Sneaky Pete” gets a stern email from Amazon, and his account is suspended, leaving him to contemplate his actions and possibly consider a career change.

The moral of the story is: honesty is the best policy. Instead of trying to manipulate feedback, focus on providing excellent customer service and high-quality products. Your customers will appreciate it, and you’ll get genuine positive feedback and higher sales. Plus, you won’t have to worry about getting on the wrong side of Amazon’s ever-watchful algorithms!

Shipping and Fulfillment

Amazon sellers are required to ship their products within the time frame they specify on their listings. If a seller offers 2-day shipping, they need to make sure the product is out the door and on its way within two days of the order. Similarly, sellers using Fulfillment by Amazon (FBA) must ensure that their inventory is adequately stocked at Amazon’s fulfillment centers.

Imagine there’s a seller who has a popular line of novelty socks, featuring hilarious designs from “avocado toast” to “dancing llamas.” Business is booming, and the socks are flying off the virtual shelves. But there’s a hiccup: the seller isn’t quite as quick at shipping as they’ve promised. Instead of the 2-day shipping stated in the listings, orders are taking four, sometimes five days to get out the door.

Meanwhile, the seller is also using FBA for some products but isn’t keeping up with the inventory. Amazon’s fulfillment centers are running out of the “dancing llamas” socks, but the seller isn’t restocking fast enough.

Customers start to notice. They’re not pleased when their feet are left sock-less for days longer than expected. And the customers wanting to step out in style with “dancing llamas” on their feet are disappointed when they find the product out of stock.

Amazon also notices. They see the gap between the shipping promise and reality, and they’re aware of the stock issues with FBA. Consequently, the seller’s account gets flagged, and they’re warned to straighten up their act, or they might face suspension.

The moral of the story is: don’t be a slowpoke when it comes to shipping, and don’t leave your customers or Amazon’s fulfillment centers hanging when it comes to stock. A timely seller is a well-loved seller, both by customers and by Amazon.

Restricted Products

Amazon has a list of restricted products that sellers are not allowed to list and sell on the platform. These restrictions may be due to safety concerns, legal issues, or ethical reasons. It’s important for sellers to check this list and ensure they’re not unintentionally selling something they shouldn’t.

Imagine a seller who found a fantastic deal on 1,000 novelty lighters shaped like mini-rockets. Thrilled at the potential profit, the seller lists them on Amazon without a second thought. The listing reads, “Light up your life with our mini-rocket lighters. They’re out-of-this-world fun!”

However, there’s a problem. Lighters, particularly those that might appeal to children, are on Amazon’s restricted product list. Unaware of this, the seller starts selling these lighters, and they’re a hit. Customers love the novelty of them, and sales take off like a rocket.

But, Amazon’s algorithm catches this faster than a shooting star. The algorithm notices the rocket lighters and flags them as a restricted product. Suddenly, the seller’s account is under review, and the rocket lighters are removed from the platform.

The seller is shocked and confused until they check Amazon’s restricted products list. There, clear as the night sky, is the rule against selling novelty lighters. The seller now faces penalties, including a potential suspension of their account.

The lesson here is: always check Amazon’s restricted products list before you list a new product. Don’t let your profits go up in smoke by accidentally selling something you shouldn’t. It’s always better to be safe than sorry (and suspended!).

Intellectual Property Rights

Amazon takes intellectual property rights very seriously. Sellers are not allowed to sell products that infringe on someone else’s trademark, copyright, or patent. Selling knock-off designer goods, unauthorized merchandise, or using someone else’s brand name without permission are all big no-nos.

Now, picture this situation:

A seller decides to start selling t-shirts featuring a famous cartoon mouse without getting permission from the company that owns the rights to this character. The listing reads, “Get your very own ‘Not-So-Official’ cartoon mouse shirt! Who needs a theme park?”

Sales start pouring in. Parents are buying them for their kids, and fans of the cartoon mouse are snapping them up. The seller is rolling in cheese, so to speak. But there’s a problem: the seller didn’t get permission to use the cartoon mouse image and is violating intellectual property rights.

Amazon’s algorithms, working harder than a cat in a mouse factory, catch this. They notice the unauthorized use of the cartoon mouse, and the seller’s account is flagged. Amazon removes the t-shirt listing, and the seller’s account is suspended.

The seller is left with a warehouse full of cartoon mouse shirts and no way to sell them on Amazon. They’re in a real “mouse-terious” situation now.

So remember, always respect intellectual property rights when selling on Amazon. It might seem like a “cheesy” move to sell knock-off or unauthorized merchandise, but it’s not worth getting your account suspended. And remember, there’s nothing “mice” about stealing someone else’s work!

Frequently Asked Questions about Amazon FBA Key Rules & Policies

What are Amazon’s policies on product condition for FBA?

Amazon has specific guidelines regarding the condition of products for FBA. The condition of your products must accurately match the condition you specify in your listings. This is listed as New or Used. Note, there are multiple variations of ‘used’. Like New, Good, Acceptable.

What are the rules for pricing my products on Amazon when using FBA?

When using FBA, sellers have the flexibility to set their own prices on Amazon, but they must comply with Amazon’s Fair Pricing Policy.

This policy prohibits price gouging and requires sellers to offer fair and competitive prices. Additionally, sellers should consider various factors such as competition, product costs, and desired profit margins when determining their prices on Amazon.

Are there any restrictions on product categories or brands for FBA?

Yes, Amazon imposes restrictions on certain product categories and brands for FBA in order to comply with legal requirements, protect intellectual property rights, and maintain a safe and trusted marketplace.

Are there any specific policies for hazardous materials or dangerous goods in FBA?


Yes, Amazon has specific policies and guidelines for hazardous materials or dangerous goods in FBA. Always check you can ship these in, before sending them. Selleramp is the perfect assistant for things like this.

Are there any rules for product bundling or multipacks in FBA?

Sellers are allowed to create bundles or multipacks by combining different products as long as they meet specific criteria. The bundled items must be related, complementary, or intended for use together.

What are the rules for product liability and insurance in FBA?

Sellers using FBA are responsible for product liability and should carry appropriate insurance coverage. While Amazon provides some coverage through the FBA Lost and Damaged Inventory Reimbursement Policy, it is recommended that sellers have their own product liability insurance to protect against potential claims

Conclusion

In conclusion, successfully selling on Amazon involves more than just having desirable products and a clever marketing strategy. It also requires a thorough understanding and adherence to Amazon’s rules and regulations. This includes everything from providing accurate contact information, respecting customer privacy, and communicating solely through Amazon’s platform, to ensuring prompt shipping, avoiding the sale of restricted products, and respecting intellectual property rights.

If you’re not careful, breaking these rules can result in penalties ranging from warnings and temporary suspensions to permanent bans. It’s far better to maintain a clean record and a reputation for integrity on the platform.

After all, in the end, it’s not just about making a quick buck. It’s about building a sustainable, profitable business that respects its customers and operates within the boundaries of Amazon’s policies.

Always remember to follow the guidelines, check for updates regularly, and when in doubt, ask. Amazon provides plenty of resources to help sellers understand and comply with their policies.

So, whether you’re selling handmade candles, novelty socks, or organic teas, make sure you’re doing it right. It might require a bit of extra effort and diligence, but your business (and your customers) will thank you for it.

And remember, while navigating the world of Amazon selling, there’s always room for a dash of humor. After all, who said compliance can’t be fun? Happy selling!

Author
Tom P
Hi, I'm Tom Paddock! An Amazon & eBay seller, who has helped over 10,000 people start their own online business. I provide cutting-edge techniques to help sellers with Online Arbitrage, Retail Arbitrage & Wholesale on Amazon.

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