Amazon Gives Sellers Deadline to Provide Identification Documents
In an effort to combat counterfeit products and scammy merchants, Amazon has informed third-party sellers on its marketplace that they must complete an identity verification process within a few days. Failure to do so will result in the e-commerce giant withholding payments. The verification process, created to comply with the INFORM Consumers Act, requires sellers to verify details such as their business address, phone number, bank account, and tax information. The new law aims to increase transparency for shoppers and deter the sale of counterfeit, stolen, or harmful products online. Marketplaces like Amazon, Etsy, and eBay could face fines of $50,120 per violation for failing to collect seller information.
However, some sellers have encountered issues with Amazon’s verification process. Problems ranged from not receiving text messages containing verification codes to delays in receiving postcards with confirmation numbers. Shlomo Greenblatt, president of Albert Scott Ecommerce Management, explained that contact details for some brands no longer match since they set up their accounts years ago. Additionally, brands that were recently acquired had to track down the original owners of the Amazon accounts. Despite these challenges, Amazon claims to have made improvements based on seller feedback and is working diligently to support sellers in meeting the new compliance obligations.
Mohamed Aden, director of operations at Amazon marketing operations agency Seller Interactive, expressed concern for sellers who heavily rely on Amazon as their main selling channel. He stated that approximately 40% of Seller Interactive’s partner brands faced issues during the verification process. Sellers who fail to provide the necessary information after receiving a warning may face suspension.
While complaints from sellers on eBay and Etsy have been relatively low, Juozas Kaziukėnas, CEO of e-commerce intelligence firm Marketplace Pulse, believes that having detailed information about each seller on Amazon will benefit both shoppers and the company in the long run.
Amazon encourages sellers to regularly check their Account Health Dashboard for verification status and requirements. If sellers encounter technical issues, they should reach out to Seller Support for assistance. Amazon will review and confirm specific technical problems and ensure that disbursements are not withheld as a result.
Are you an Amazon seller? Share your experience or provide tips by contacting this reporter at mstone@insider.com, mlstone@protonmail.com, or via the secure messaging app Signal at (646) 889-2143 using a non-work phone.